Artificial intelligence (AI) is revolutionizing the financial sector, particularly in the rapidly growing field of sustainable finance. As environmental, social, and governance (ESG) considerations become central to investment decisions, financial institutions must navigate complex regulatory frameworks like the European Green Deal and the EU taxonomy. AI offers transformative solutions by enhancing ESG assessments, ensuring compliance, and driving efficiency through data-driven insights. However, challenges such as the “black box” dilemma, talent shortages, and cultural barriers must be addressed. Despite these hurdles, the synergy between AI and sustainable finance presents a unique opportunity to build a more transparent, responsible, and future-proof financial ecosystem.