The rapid growth of Artificial Intelligence (AI) in recent years has allowed businesses to harness its potential to optimise operations and boost efficiency. From retail firms personalising customer experiences to agriculture utilising AI-powered drones and sensors for crop monitoring and yield enhancement, the scope of AI applications is vast. This article delves into how companies are leveraging AI to meet Environmental, Social, and Governance (ESG) objectives and considers whether these advancements will ultimately deliver a net positive social impact.
Predictive AI is a powerful tool that enables businesses to forecast future carbon emissions and other sustainability metrics by analysing current expenditure and production data. This capability helps organisations make informed decisions about their use of energy, water, and materials while evaluating the financial implications. A noteworthy example is Google’s AI-driven system, which predicts the energy consumption of its data centres based on various operational scenarios. By implementing AI insights, Google has achieved a 40% reduction in its data centre cooling bill, a positive step toward its goal of relying entirely on renewable energy sources.
As AI becomes more accessible, an increasing number of businesses will be able to identify and implement sustainability enhancements throughout their supply chains, potentially paving the way for a greener future. However, questions remain about whether the pursuit of ESG goals through AI truly delivers a net benefit to society.
Despite its advantages, AI poses challenges to sustainability due to its substantial energy demands. Training large AI models, particularly in deep learning for natural language processing (NLP), generates significant carbon emissions. For instance, training a single NLP model can produce approximately 600,000 pounds of CO₂ emissions - comparable to the lifetime emissions of five cars. With an estimated 90% of large U.S. companies now utilising generative AI, the environmental burden of these technologies is projected to escalate further.
Given these challenges, IT departments play a pivotal role in driving firms toward sustainable AI practices. Their success in deploying AI to reduce carbon footprints, prioritise environmental responsibility, and optimise energy use while transitioning to green energy sources will distinguish forward-thinking organisations in the years ahead. Balancing AI’s potential with its environmental impact is imperative to ensure its contribution to ESG goals results in a true net benefit.
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