Going beyond: Multimodal AI for sustainable finance

Introduction

In this report, we explore the convergence of artificial intelligence (AI) and sustainable analysis, which represents one of the most significant opportunities in contemporary finance. A PwC study found that 85% of investment professionals believe that faster adoption of AI is important for value creation¹. The vast majority of asset managers globally use AI in their investment strategies or research (54%) or plan to do so in the future (37%)². The European Securities and Markets Authority (ESMA) report highlights that over the last 4 years the number of investment funds domiciled in the European Union (EU) and using AI or machine learning (ML) nearly doubled. ³

As European markets lead global sustainable finance initiatives, multimodal AI technologies are emerging as critical tools for enhancing sustainability analyses and their implications on investment decision-making and portfolio management⁴. The integration of multiple data modalities—combining text, images, video, satellite imagery, and numerical data—enables investors to perform more contextualized and nuanced analysis at scale.

The European Union's Green Deal initiatives have positioned the region at the forefront of sustainable finance innovation. This transformation is particularly pronounced through regulatory frameworks that create both opportunities and challenges for sustainability-focused investment strategies. The Corporate Sustainability Reporting Directive (CSRD)⁵ mandates detailed sustainability disclosures, accompanied by European Sustainability Reporting Standards (ESRS)⁶ to standardize data formats, facilitating AI-driven analysis. In February 2025, the European Commission introduced the Omnibus package⁷, streamlining sustainability reporting by reducing data burdens—enhancing efficiency for AI-powered systems. Additionally, the EU AI Act⁸, in force since August 2024, sets strict rules for high-risk AI systems, emphasizing transparency, accountability, and bias mitigation, and provides a regulatory framework for responsible AI use in sustainable finance.

Our conclusion

As we work toward a more sustainable future, leveraging advanced technologies will play a crucial role in reshaping the financial landscape. The convergence of regulatory support, technological capability, and market opportunity creates a compelling case for accelerated adoption of multimodal AI in sustainable finance. At FTFI, we see multimodal AI as a transformative tool—enabling more sophisticated, comprehensive, and efficient sustainability analyses than traditional methodologies. Technology’s ability to process diverse data sources provides investors with unprecedented data insights for better decision-making and continuous improvement.