Harnessing Artificial Intelligence & Big Data for Sustainable Finance & Risk Management

Pranay Harsha Jupalli

Abstract: This study investigates the integration of Artificial Intelligence (AI) & Big Data into sustainable finance & market risk management. As financial markets become increasingly complex & interconnected, the need for advanced technologies to address sustainability & risk challenges is paramount. This research explores how AI & Big Data enhance decision making, risk assessment, & Environmental, Social, & Governance (ESG) performance. A mixed method approach, including surveys & interviews with finance professionals, alongside the analysis of secondary data, was employed to gather comprehensive insights. The findings indicate that AI & Big Data significantly improve the accuracy & efficiency of risk assessments, contribute to better ESG outcomes, & promote sustainable investment practices. Despite challenges related to data quality, technological barriers, & the need for standardized metrics, the integration of these technologies presents substantial opportunities for financial institutions to optimize operations, reduce costs, & achieve long term sustainability goals. The study concludes with practical recommendations for leveraging AI & Big Data to enhance sustainable finance & risk management. Additionally, it highlights the necessity for ongoing innovation & adaptation in financial practices to meet evolving market demands & regulatory standards.

Keywords: Artificial Intelligence (AI), Big Data, Sustainable Finance, Market Risk Management, Environmental, Social, & Governance (ESG), Risk Assessment, Predictive Analytics, Financial Technology (Fintech), Sustainability Metrics