Designing Ethical AI Governance in Sustainable Finance Ecosystems

Abstract

This literature review explores the transformative potential of Artificial Intelligence (AI) in advancing sustainable development, highlighting its applications across sectors such as finance, construction, healthcare, and cultural heritage. AI’s capabilities in data processing, automation, and decision-making enable resource optimization and support progress toward the Sustainable Development Goals (SDGs). However, a major concern is the “principles-to-practices gap,” wherein high-level ethical AI frameworks lack clear implementation mechanisms, especially in low-resource or marginalized contexts. The review synthesizes global case studies, including AI deployment in mountain communities and cultural institutions, to demonstrate the value of context-sensitive, human-centric design. These examples reveal how AI can bridge digital divides and empower underrepresented groups when developed inclusively. However, risks of “AI neo-colonialism” persist, as governance models from high-income countries may marginalize diverse development needs. The review identifies shared themes such as data centrality, ethical design, and alignment with SDGs, while highlighting disparities in resources, governance models, and goals across organizations. It underscores the need for adaptive, inclusive AI governance frameworks that balance innovation with accountability. Policy implications include the need for enforceable, risk-based AI regulations, international cooperation for harmonized standards, and investment in explainable AI and infrastructure sustainability. Future research should prioritize empirical studies on governance practices, particularly in the Global South, and develop sector-specific tools to map AI’s contributions to sustainability. Ultimately, responsible AI governance must integrate social, cultural, and political dimensions to ensure that AI supports not just innovation, but equitable, inclusive, and sustainable global development.

Keywords: Artificial Intelligence, Sustainable Development, Ethical Governance, SDGs