The Role of Artificial Intelligence in Promoting the Environmental, Social and Governance (ESG) Practices

Environmental, social, and governance (ESG) issues have had a prominent position in recent years, especially with the increasing use of artificial intelligence (AI) in various aspects of life. It is crucial to comprehend how AI can help build a sustainable future by enhancing ESG trends. Through reviewing the mechanism of connection and impact of AI on ESG practices in the current study, it is evident that this integration works to enhance sustainable growth and increases social well-being while, at the same time, resulting in negative environmental and social impacts besides the presence of financial and institutional challenges that accompany the merging process. However, data and reports on the positive impact of applying AI systems in enhancing ESG practices outperform its negative effects. To ensure that the sustainable impact of AI continues to be enhanced, policymakers will need to balance new liability frameworks that stabilize the benefits of encouraging innovation with the moral imperative to protect society from technical risks to ensure that the risks of excessive liability do not hinder innovation.