The Use of AI in ESG Integration: Bangladesh Perspective

Abstract

Investing in ESG (environmental, social, and governance) has gained significant attraction in the last few years. Investors are starting to match their principles to their assets. However, despite this quick expansion, many investors still require assistance, the most significant of which is the quality and accessibility of ESG data. The rapidly growing research landscape in finance, encompassing environmental, social, and governance (ESG) topics and associated artificial intelligence (AI) applications, presents the greatest challenge in Bangladesh. Data were collected from the audited annual report of the top 30 firms of banks, non-banking financial institutions, and insurance listed in Dhaka Stock Exchange for four years (from 2020 to 2023). Content analysis was used first to find the link of ESG reporting with AI and then text analysis was used. Findings of this chapter suggest that AI-integrated solutions can significantly improve security and customer experience and accelerate industry innovation in the financial sectors.