Leveraging AI for Sustainability in Banking : A Systematic Review of Integrated Approaches

The intersection of artificial intelligence (AI) and sustainability has emerged as a transformative force in the banking sector, enabling institutions to optimize operations, enhance decision-making, and meet growing environmental, social, and governance (ESG) demands. This systematic literature review explores how AI is being integrated to promote sustainability within the banking ecosystem. Drawing on peer-reviewed articles, industry reports, and case studies published between 2013 and 2024, the review synthesizes key findings across four thematic areas: green finance and risk assessment, customer behavior analytics for sustainable banking, AI-driven compliance and fraud detection, and operational efficiency through intelligent automation. The study identifies machine learning, natural language processing, and predictive analytics as core AI technologies contributing to sustainable banking outcomes. Despite notable advancements, the review highlights critical challenges, including data privacy concerns, regulatory gaps, and the ethical use of AI. The findings underscore the need for a balanced approach that integrates technological innovation with responsible governance to foster a truly sustainable banking ecosystem.