With the rising attention to AI technology, there has been various research on its application in different sectors. This opinion piece, written by Daria Gerasimenko, Assistant Researcher, International Cooperation Department, IIGF, CUFE, explores the critical role of AI in enhancing transition finance to address the growing global CO₂ emissions. It examines the potential of AI to improve risk assessment, optimize investment strategies, and drive efficiency in carbon-intensive industries. The paper highlights how AI and transition finance can work synergistically to accelerate the global shift towards a low-carbon economy while also addressing the challenges of AI’s energy consumption and the need for collaboration among diverse stakeholders. The article has been translated into Chinese by Liu Sichen, Assistant Researcher, International Cooperation Department, IIGF, CUFE.