Behavioral Economics and Artificial Intelligence with Sustainable Development with perspective of Agentic AI for Banking in Ethical practices

Behavioral Economics is a fascinating and dynamic field that pushes the boundaries of traditional economic theory by challenging the notion that individuals always behave rationally to maximize their utility. By weaving together insights from psychology, cognitive science, and classic economic principles, behavioral economics sheds light on the often perplexing ways in which our biases, emotions, and social influences lead us to make seemingly irrational choices. Behavioral Economics has wide range of applications viz. Public Policy and Governance, It's truly fascinating how governments harness the power of behavioral insights to foster positive social behaviors! Thanks to AI, we can enhance savings plans and investment strategies through more effective nudging. Behavioral Economics is also impacting Sustainable Decision-Making and Behavioral Interventions and that is towards more environmentally friendly concerns. Implementing green defaults, like automatically choosing sustainable energy providers, could really encourage pro-environmental behavior. Artificial Intelligence (AI) is revolutionizing the landscape of sustainable development with its incredible potential to transform our world. By incorporating AI-driven solutions across various sectors like environmental conservation, healthcare, climate action, and social equity, we are paving the way toward achieving the United Nations’ Sustainable Development Goals (SDGs). This Chapter has described about the Behavioral Economics including its nature, importance; in general and in sustainable development. Chapter also focuses on uses of AI and allied Technologies in Sustainable Development with contrast of Behavioral Economics.