The rapid diffusion of artificial intelligence (AI) across financial markets, corporate strategy, and broader economic systems represents one of the most consequential technological shifts of the twenty-first century. This research article develops an integrated academic analysis of how AI reshapes investment decision-making, environmental, social, and governance (ESG) integration, firm value creation, and long-run economic growth. Drawing strictly on the provided literature, the study synthesizes insights from economics, finance, technology management, and innovation studies to construct a comprehensive framework explaining AI’s multifaceted role in modern investment ecosystems. Particular emphasis is placed on AI-enabled ESG investing, portfolio optimization, and performance enhancement, alongside the strategic investments and alliances formed by global technology leaders. The methodology relies on an extensive qualitative synthesis of empirical findings, theoretical models, and institutional evidence, allowing for deep conceptual elaboration without reliance on mathematical formalism. Results indicate that AI contributes to superior information processing, dynamic risk assessment, and adaptive portfolio management while simultaneously reshaping corporate governance practices and sustainability outcomes. At the macroeconomic level, AI acts as a general-purpose technology with the potential to accelerate productivity growth, though accompanied by distributional and regulatory challenges. The discussion critically evaluates limitations related to data quality, model opacity, intellectual property, and ethical considerations, while outlining future research directions. The study concludes that AI’s transformative impact on investment and economic growth is neither automatic nor uniform but contingent on institutional readiness, governance frameworks, and responsible innovation practices.

Artificial intelligence, ESG investing, portfolio management

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