Artificial Intelligence in Green Financial Decision-Making: Risk Management and Investment Strategies Nexus
摘要
This study explores the impact of artificial intelligence (AI)Artificial intelligence (AI) on green financial decision-making processes, particularly focusing on its role in risk managementRisk management and investment strategies in response to the challenges posed by climate change. The growing capacity for AIArtificial intelligence (AI) in data processing allows for more effective responses in adapting to changes in the environment. It was found that AIArtificial intelligence (AI) algorithms provide more accurate predictions of enhancing new methods to minimise the effects of climate change in markets compared to traditional methods. Moreover, AI-based models have been shown to improve investment outcomes by reducing decision errors and enhancing risk assessment. Commonly employed in financial decision-making, methods such as support vector machines (SVMSupport Vector Machines (SVM)) and long short-term memory (LSTMLong Short-Term Memory (LSTM)) are analysed through comparative studies and empirical testing. The results suggest that AIArtificial intelligence (AI) offers significant advantages in green financial processes, both theoretically and practically.