Enhancing Investor Awareness And Sustainable Investing Through AI- Driven ESG

Abstract

In recent years, there has been an increasing emphasis on incorporating Environmental, Social, and Governance (ESG) concerns into investment decisions, as well as the rapid global spread of digital financial services. This necessitates investigating the interaction between sustainable finance and digitalization, particularly in the context of India. This study aims to contribute to a better understanding of how sustainability principles and digital technologies intersect in India's financial environment by evaluating the link between them over a multi-year period. A Pearson correlation analysis and regression modelling were used to investigate the relationship between ESG funds (AUM) and DPI from 2018 to 2023. The investigation also demonstrated a statistically significant positive association between ESG fund AUM and DPI. The findings point to possible synergies between sustainable investing and digital financial services, highlighting opportunities for policymakers, financial institutions, and stakeholders to enhance sustainability, financial inclusion, and innovation.