AI Impact on Sustainable Economy Growth

Abstract

Artificial intelligence (AI) is increasingly recognized as a transformative driver of sustainable economic growth, yet its effects remain ambivalent. On the one hand, AI enhances efficiency, transparency, and competitiveness across environmental, social, governance, and economic domains; on the other, rebound effects, inequality, and governance deficits can undermine its contributions [1]; [2]; [3] A review of the literature reveals three critical gaps: fragmentation across sustainability pillars, inconsistent measurement of AI's sustainability impact, and limited integration of AI into green finance mechanisms, particularly with respect to Scope 3 financed emissions [4]. Building on the five-pillar framework of [5], this paper addresses these shortcomings by proposing an integrated Green Finance–AI Framework and platform. The proposed solution links financial allocation with AI-enabled monitoring, verification, and reporting, allowing banks to transition from symbolic commitments to measurable decarbonization strategies. Using the MENA region as a case study of both vulnerability and opportunity, the findings show that the convergence of AI and green finance advances sustainability across all five pillars: environmental protection, social inclusion, economic resilience, governance accountability, and digital transformation. In doing so, the study contributes to scholarly debate and policy practice by positioning financial institutions as active agents of decarbonization and inclusive growth.