LEVERAGING ARTIFICIAL INTELLIGENCE TO DRIVE GREEN BANKING PRACTICES: OPPORTUNITIES, CHALLENGES, & FUTURE TRENDS

The integration of Artificial Intelligence (AI) into green banking offers promising opportunities for promoting sustainability within the financial sector. This paper explores how emerging AI technologies, including machine learning, data analytics, and automation, can enhance eco-friendly banking practices. By leveraging AI, financial institutions can optimize resource allocation, assess environmental risks, and offer innovative green financial products. The paper highlights the potential benefits of AI in green banking, such as better decision-making, improved credit scoring, and more sustainable investments. It also discusses the challenges and risks associated with AI adoption, including data privacy concerns, high implementation costs, and algorithm biases. The study further examines the future trends of AI in green banking and provides recommendations for financial institutions to foster a sustainable, AI-driven financial ecosystem.