Customer Perception of Service Excellence in the Financial Services Industry: Integrating ESG Practices and Artificial Intelligence in Banking

Abstract

The integration of Environmental, Social, and Governance (ESG) metrics with Artificial Intelligence (AI) is increasingly important for sustainable financial risk management. This study examines how ESG indicators and AI-driven technologies enhance financial risk assessment, prediction, and mitigation. Traditional risk management approaches often overlook long-term sustainability risks, including climate change, regulatory changes, and social responsibility concerns. AI techniques such as machine learning, natural language processing, and big data analytics enable more accurate risk forecasting and informed financial decision-making. The study also highlights challenges related to ESG data inconsistency, reporting standardization, and AI ethics. The findings emphasize that integrating ESG metrics with AI improves risk management efficiency, forecasting accuracy, and sustainable investment decisions, contributing to resilient and responsible financial systems.