This paper analyses the environmental impact of Artificial Intelligence (AIArtificial Intelligence (AI)) in financial services and emphasizes opportunities and challenges for sustainabilitySustainability. In past few decades, AI has come up as a prominent advancement in numerous sectors such as agriculture, finance, transport, energyEnergy efficiency, healthcare media and education. AI emerges as a powerful mechanism to reshape global sustainability also. The main objective of the paper is to discuss ethical AI and environment sustainability, and AI’s applicability in financial services for social betterment. In order to maintain harmonization between AI and Sustainability, it becomes important to have an progressive insight to the specific contexts such as environmental, social and ethical implications. Regardless of AI seamlessly developing, the concern arises for its potential negative impacts on environment and sustainability, including ethical challenges. This research helps to investigate the environmental impact of AI in financial services, mutual benefits, challenges and opportunities for AI and Sustainability. AI plays a crucial role in maintaining sustainability, on the other hand sustainable practices are important for the development of Artificial Intelligence. This paper highlights the strategic utilization of AI in financial services to advance the critical sustainability objectives.