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

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