Can Green AI Get-up-and-go Sustainable Transformation in the Fintech Division?

Mohammad Nurul Alam

doi:10.69565/jems.v4i2.417

Authors

Mohammad Nurul Alam Assistant Professor, Faculty of Business Administration, University of Tabuk, Tabuk, Saudi Arabia https://orcid.org/0000-0002-0478-3298

DOI:

https://doi.org/10.69565/jems.v4i2.417

Keywords:

Green AI, FinTech, ESG, AI ethics, SDGs, qualitative research, AI in financial services, Environmental sustainability, Qualitative research

Abstract

The rapid adoption of artificial intelligence (AI) by financial technology (FinTech) has led to significant efficiencies in products such as robo-advisors, credit scoring systems, and fraud detection systems. However, despite these beneficial developments, environmental concerns persist as the energy demand of AI models remains substantial. This study examines the environmental implications of AI-powered products, as well as the adoption of Green AI practices, including energy-efficient algorithms and sustainable infrastructure, by FinTech organizations. This study employed a qualitative, interpretive approach, utilising a total of twelve semi-structured interviews with participants in strategic, technical, and ESG roles. The thematic analysis revealed evidence that awareness of Green AI is increasing; however, there were inconsistent indications of actual implementation of the initiatives, as legacy systems hindered results, the lack of standard metrics, and limited stakeholder pressure. Almost certainly, if institutionalized and standardized, Green AI can provide FinTech with the opportunity to align its long-term sustainability ambitions. This study contributes to the ongoing discussion on responsible AI by connecting the conceptual threads of the study to the UN Sustainable Development Goals (SDGs 9, 12, and 13) and providing practical recommendations relevant to the FinTech industry.

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