Environmental, social, and governance (ESG) and artificial intelligence in finance: State-of-the-art and research takeaways

Экологические, социальные и управленческие факторы (ESG) и искусственный интеллект в финансах: современное состояние и основные выводы для исследований
Tristan Lim
2024-02-28

ESG disclosure and measurementESG in financeartificial intelligence in financeresponsible AIrisk management
Abstract The rapidly growing research landscape in finance, encompassing environmental, social, and governance (ESG) topics and associated Artificial Intelligence (AI) applications, presents challenges for both new researchers and seasoned practitioners. This study aims to systematically map the research area, identify knowledge gaps, and examine potential research areas for researchers and practitioners. The investigation focuses on three primary research questions: the main research themes concerning ESG and AI in finance, the evolution of research intensity and interest in these areas, and the application and evolution of AI techniques specifically in research studies within the ESG and AI in finance domain. Eight archetypical research domains were identified: (i) Trading and Investment, (ii) ESG Disclosure, Measurement and Governance, (iii) Firm Governance, (iv) Financial Markets and Instruments, (v) Risk Management, (vi) Forecasting and Valuation, (vii) Data, and (viii) Responsible Use of AI. Distinctive AI techniques were found to be employed across these archetypes. The study contributes to consolidating knowledge on the intersection of ESG, AI, and finance, offering an ontological inquiry and key takeaways for practitioners and researchers. Important insights include the popularity and crowding of the Trading and Investment domain, the growth potential of the Data archetype, and the high potential of Responsible Use of AI, despite its low publication count. By understanding the nuances of different research archetypes, researchers and practitioners can better navigate this complex landscape and contribute to a more sustainable and responsible financial sector.
1
Distinctive AI techniques are applied across the identified research archetypes, indicating methodological variation across ESG-finance research domains.
2
Eight research archetypes emerge: Trading and Investment; ESG Disclosure, Measurement and Governance; Firm Governance; Financial Markets and Instruments; Risk Management; Forecasting and Valuation; Data; and Responsible Use of AI.
3
Responsible Use of AI has high research potential despite currently having a low publication count, highlighting an underdeveloped area for future work.
4
The study systematically maps the intersection of ESG, artificial intelligence, and finance, identifying knowledge gaps and future research opportunities.
5
Trading and Investment is the most popular and crowded research domain, while the Data archetype offers substantial growth potential.

The intersection of environmental, social, and governance (ESG) topics and artificial intelligence (AI) applications within the finance domain

Research themes, evolution, AI technique applications, and knowledge gaps at the intersection of ESG, AI, and finance

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2024-02-28
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Tristan Lim
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