Artificial intelligence (AI) can contribute to finding innovative solutions for climate finance,
climate risk management, and insurance
Artificial intelligence (AI) can contribute to finding innovative solutions for climate finance, climate risk management, and insurance and enable the development of transformative financial instruments and tools. As the technology progresses, there are emerging use cases for AI to enhance climate finance in terms of speed, efficiency, transparency, and equity. However, the potential role of AI for finance and risk management is complex and not without challenges, which need to be carefully considered before any large-scale implementation or the introduction of innovative applications.
Data management and analytics
AI-driven solutions present significant opportunities to enhance processes and instruments related to climate finance, risk finance, and insurance. For example, AI can significantly improve the accuracy of climate change projections and climate risk assessments by analysing vast datasets on weather patterns, recorded impacts, and other relevant factors. By improving the precision of risk modelling, AI can inform financial instruments, ensure that…
