This paper presents a theoretical and empirical analysis of how banks apply artificial intelligence (AI) in digital and mobile banking to implement and communicate ESG (Environmental, Social, and Governance) strategies, with particular emphasis on environmental dimensions of sustainable finance. The study adopts a mixed methodological approach combining desk research, encompassing a synthesis of academic studies, industry reports, and European regulatory frameworks on AI and ESG, and case study analysis of selected banks implementing AI-based sustainability solutions. The findings reveal that AI supports ESG strategy implementation primarily through green investment recommendations, carbon footprint analytics, automated sustainability reporting, and ethical communication with clients. AI-driven tools enhance the operational efficiency, transparency, and customer engagement of financial institutions while simultaneously fostering low-carbon financial behaviors. However, the study also highlights ethical and governance challenges related to algorithmic transparency, data bias, and responsible AI oversight. The paper contributes to the growing body of literature on AI-driven digital transformation and sustainable finance by identifying research gaps and outlining future directions for exploring the role of AI in accelerating the transition of the banking sector.
Pluskota et al. (2026) studied this question.