THE ROLE OF AI IN ENHANCING SUSTAINABILITY AND FINANCIAL TRANSPARENCY: A CASE STUDY OF INDIAN COMPANIES

Abstract

The Indian financial services sector is undergoing a profound transformation as a direct consequence of the introduction of artificial intelligence into FinTech. FinTech companies have seen improvements in their decision-making, operational efficiency, and customer experience as a result of the use of artificial intelligence (AI) techniques such as machine learning, natural language processing, and predictive analytics. The purpose of this study is to examine the correlation between the success of AI-driven FinTech companies and that of traditional financial services by using financial data spanning the years 2018–2023. According to variance analysis and analysis of variance (ANOVA) tests, the study indicates that FinTech companies perform better than traditional financial services in terms of critical metrics such as the net profit margin and the debt coverage ratio. The findings demonstrate that artificial intelligence is assisting the banking sector in India in being more environmentally friendly and transparent. The results suggest that AI-driven innovations play a pivotal role in enhancing both financial performance and sustainability in the Indian financial services sector