This chapter discusses the transformative role of artificial intelligence in sustainable finance and its potential in integrating environmental, social, and governance (ESG) into financial decision-making. In principle, sustainable finance is all about using environmental, social, and good governance factors to achieve both environmental and social improvements and making financial sense. AI is considered as one of the vital solutions among the tools available to support the financial market being environmentally and socially responsible. The aim of this work is to discuss how AI can be integrated into the financial sector to achieve sustainable development goals (SDGs). Industry 4.0 is now changing to what is known as Industry 5.0 era, and AI demonstrated a promising start in successfully going through vast volumes of financial data, developing comprehensive macroeconomic analysis, and rather fast credit ratings in a rapidly evolving digital environment. Yet, the application of AI in sustainable finance has some challenges including data quality, ethical issues, regulatory challenges, infrastructure management, and stakeholder validity, which impact the appropriate application of AI. This work intends to underscore the unexplored ethical dilemmas that AI brings in sustainable finance which with anticipation to be resolved by the expeditious innovation of techniques that are conducive to the proper assessment of AI and ESG issues. Furthermore, this chapter serves as an introduction on the topic of AI in sustainable finance and highlights AI applications that can be employed by financial institutions as regards to both the streamlining and the empowerment of the ESG standards which are tied directly to financial practices. Thus, the chapter aims to provide insights into the current role of AI in sustainable finance and the potential it holds to drive significant advancements in the field.