Artificial Intelligence in ESG investing: Enhancing portfolio management and performance

Artificial Intelligence in ESG investing: Enhancing portfolio management and performance

Received on 08 January 2024; revised on 15 February 2024; accepted on 17 February 2024 | Omotayo Bukola Adeoye, Chinwe Chinazo Okoye, Onyeka Chrisanctus Ofodile, Olubusola Odeyemi, Wilhelmina Afua Addy, Adeola Olusola Ajayi-Nifise
The paper "Artificial Intelligence in ESG Investing: Enhancing Portfolio Management and Performance" explores the transformative role of Artificial Intelligence (AI) in Environmental, Social, and Governance (ESG) investing. It highlights how AI technologies, including machine learning, natural language processing, and predictive analytics, are revolutionizing portfolio management and performance in ESG investing. The authors discuss the integration of AI in ESG analysis, enabling investors to analyze extensive ESG datasets, identify investment opportunities, and construct portfolios that align with sustainability goals. AI-driven ESG analysis helps investors evaluate environmental impact, social responsibility, and corporate governance practices, leading to more informed and sustainable investment decisions. The paper also addresses the challenges and considerations in using AI, such as data quality, ethical biases, and regulatory compliance, and emphasizes the importance of collaboration and innovation to overcome these challenges. Finally, it outlines future directions and opportunities for AI in ESG investing, including the potential for advanced NLP, explainable AI, and autonomous decision-making systems. The authors conclude that AI has the potential to enhance portfolio management and performance, drive sustainable financial success, and promote positive social and environmental impact.The paper "Artificial Intelligence in ESG Investing: Enhancing Portfolio Management and Performance" explores the transformative role of Artificial Intelligence (AI) in Environmental, Social, and Governance (ESG) investing. It highlights how AI technologies, including machine learning, natural language processing, and predictive analytics, are revolutionizing portfolio management and performance in ESG investing. The authors discuss the integration of AI in ESG analysis, enabling investors to analyze extensive ESG datasets, identify investment opportunities, and construct portfolios that align with sustainability goals. AI-driven ESG analysis helps investors evaluate environmental impact, social responsibility, and corporate governance practices, leading to more informed and sustainable investment decisions. The paper also addresses the challenges and considerations in using AI, such as data quality, ethical biases, and regulatory compliance, and emphasizes the importance of collaboration and innovation to overcome these challenges. Finally, it outlines future directions and opportunities for AI in ESG investing, including the potential for advanced NLP, explainable AI, and autonomous decision-making systems. The authors conclude that AI has the potential to enhance portfolio management and performance, drive sustainable financial success, and promote positive social and environmental impact.
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