Greenwashing in the Age of AI: A Double-Edged Sword # Environmental, Social, and Governance (ESG) claims have become central to corporate reputation, investor relations, and regulatory compliance. Global ESG assets are projected to reach $53 trillion by end of 2025. But as the stakes rise, so does the risk of misleading sustainability claims, and AI is playing an increasingly complex role.
The $2 Trillion Question # Robo-advisers now manage over $2 trillion in assets globally, with the U.S. market alone exceeding $1.6 trillion. Major platforms like Vanguard Digital Advisor ($333B AUM), Wealthfront ($90B), and Betterment ($63B) serve millions of retail investors who trust algorithms to manage their retirement savings, college funds, and wealth accumulation strategies.
Financial services face a unique standard of care challenge: fiduciary duties that predate AI must now be applied to algorithmic decision-making. What does it mean to act in a client’s best interest when an AI makes the decision? How do fair lending laws apply when algorithms, not humans, deny loans?