Exploring the Impact of Transparency on the Relationship Between AI-Driven Finance and Sustainable Performance

Abstract

Artificial Intelligence (AI) is transforming financial practices by enhancing efficiency, improving predictive accuracy, and accelerating decision-making speed. However, the adoption of AI in finance also raises concerns about fairness, accountability, and ethical practices, all of which directly impact organizational sustainability. This study investigates the effect of transparency on the relationship between AI-driven finance and sustainable performance. Drawing on stakeholder theory and the principles of responsible innovation, the research explores how transparent disclosure, algorithmic clarity, and open reporting practices mediate organizational trust and drive long-term sustainability performance. Using a quantitative approach, a structured questionnaire was distributed among 300 respondents; however, data were collected from 252 respondents across financial institutions, corporations adopting AI-based decision systems, and sustainability-driven firms in emerging and developed economies. The findings are expected to demonstrate that transparency strengthens the positive influence of AI-driven finance on sustainable performance by enhancing accountability, trust, and stakeholder engagement. This research contributes to the growing literature on AI governance, sustainable finance, and organizational performance while offering practical insights for policymakers, regulators, and corporate leaders on embedding transparency into AI-enabled financial decision-making systems.