Is AI a green or gray technology? We show you how AI can help you achieve your ESG goals.
Oct 31, 2024
Renaiss Team
Business
It is now a fact that AI is the technological breakthrough of the century. The adoption of this technology has grown exponentially, and it has already become part of our daily lives, revolutionizing and influencing sectors ranging from the fashion industry to education. However, as AI positions itself as the technology of the future, more and more people are questioning how sustainable this technology really is or how it will impact the environment.
This brings forth a necessary question: what will be AI's impact on sustainability? To address this question, this article will explore the existing relationship between AI and sustainability, the challenges involved, and the ethical considerations that must be taken into account.
Sustainability
While it may be easy to rush into taking a stance in this heated debate, it is essential to ensure that such a stance is always based on an informed opinion. Thus, it is imperative to fully understand the concept of sustainability and its social implications first. Although sustainability was initially closely tied to environmental care and preservation —since the 20th century, it has since expanded to include other aspects that affect the way society develops today.
Broadly speaking, sustainability is a dynamic and holistic process focused on the overall balance of the economic, social, and environmental needs of our society, aimed at ensuring the present and future well-being of generations. Sustainability thus involves the proper use of natural resources, addressing climate change, and appropriately managing technological innovation for the general benefit, among other things.
There are organizations whose goal is to help us understand the essential aspects of sustainability, such as the Commission on Environment and Development, whose research indicated, as early as 1987, that sustainability means “development that meets the needs of the present without compromising the ability of future generations”, through the care of ecosystems and the general adoption of ethical and responsible practices to meet current needs.
How does AI contribute to sustainability?
Being familiar with the basics of this concept, we are able to reflect on how AI actually impacts sustainability. In this sense, it is undeniable that AI serves as a disruptive tool in the management of a great number of sustainability issues. For instance, its use may be highlighted in relation to the management of natural disasters, due to its ability to identify patterns through analyzing large volumes of data. This ability also holds great potential as a tool for the optimal analysis and management of entire ecosystems, such as agriculture, where AI applications are already observable in optimizing water and fertilizer usage, aimed at reducing the environmental impact of these practices.
Highlighting AI's potential for sustainability, a study conducted by Microsoft determined that this technology may catalyze processes and reduce the carbon footprint of many companies —provided it is used correctly. In most cases, in terms of sustainability, the way a tool is used is more important than the tool itself. AI can have a positive impact as long as the use of this technology is ethical, responsible, and equitable.
Another area of sustainability that could greatly benefit from the synergy between AI and sustainability is energy management. AI can use advanced algorithms to determine how energy sources, such as solar panels, can operate more efficiently and, at the same time, detect —and even predict, damages not visible to the naked eye.
Likewise, AI can enhance companies’ Environmental, Social, and Governance (“ESG”) assessments, showing great potential in several key areas:
Sustainability in the supply chain, thanks to demand prediction and inventory management systems.
Predictive maintenance, which identifies and resolves technical issues in a timely manner, reducing waste and preventing unnecessary replacements.
Efficient resource management, maximizing the use of materials and energy.
Logistics optimization, decreasing costs, fuel consumption, and environmental impact.
However, it is essential to recognize that the development and implementation of AI also present a challenge for sustainability. Training AI models requires a significant amount of energy, which can lead to a substantial carbon footprint. Additionally, AI relies on data to produce results, and this dependence can exacerbate pre-existing injustices and inequalities when the data used is not sufficiently objective or representative. Therefore, ethical and responsible development and utilization of AI systems are crucial to ensure that the benefits are equitably distributed and that environmental and social issues are not perpetuated.
In this same line, the International Congress on Artificial Intelligence, Innovation, Economy, and Business (CIECEM) explains that beyond the benefits AI may bring, the real impact of such a technology will depend on its proper use. Correct practical implementation will determine the potential of the relationship between AI and sustainability. Unethical and irresponsible use might lead to excessive energy consumption, increased inequality in the population, or poor practices and mistakes that may negatively affect companies and the environment.
What are the risks of AI for sustainability?
While AI may be capable of revolutionizing industries and offering solutions to major global challenges, its development and application present a lesser-known threat: its environmental impact. For this reason, it is possible to observe disadvantages associated with, for instance, electronic waste, which is waste that contains harmful elements that can pollute the environment if not properly managed.
From another perspective, process automation and its impact on jobs is a topic of considerable debate, given that AI has great potential to automate and optimize processes, which may render some jobs expendable, leading to possible social and economic inequality.
Similarly, energy consumption is another well-known disadvantage of AI systems and models. It is widely known that Artificial Intelligence requires a large volume of data to operate. The processing of this data entails significant energy consumption, which in turn generates considerable heat, requiring cooling systems that typically impact the atmosphere negatively through the emission of gasses like ozone.
In 2022, the United Nations addressed in one of its conferences the issue posed by the production of 62 million tons of waste, coming exclusively from electronic products, with recaptured refrigerants —one of the main drivers of AI, accounting for a large portion of those (41 million tons).
Also concerning environmental pollution, a study by the University of Massachusetts Amherst reveals that training a single large AI model can generate nearly 284,000 kg of CO2e. This is equivalent to the emissions of five cars over their entire lifetimes.
Another risk AI poses is related to fundamental human rights; this technology may exacerbate existing inequalities in society if it is used and implemented incorrectly. Examples of this contextual risk include the digital divide and algorithmic bias, two issues that may arise from irresponsible or erroneous use of AI systems, potentially affecting equal opportunities and rights in society.
AI and sustainability: Use cases
Setting aside the debate, AI is undeniably positioning itself as a powerful tool for addressing major sustainability challenges. The use cases of AI in sustainability, though still recent, are numerous and hold great potential. Here are some of the most relevant:
Predicting natural disasters: By analyzing satellite data and weather patterns, AI can anticipate natural disasters such as floods, droughts, or wildfires, enabling faster and more effective response.
Energy optimization: AI enables more efficient management of energy consumption in buildings, industries, and cities, reducing greenhouse gas emissions.
Precision agriculture: Using sensors and drones, AI helps farmers optimize water, fertilizer, and pesticide usage, increasing yield and reducing environmental impact.
Biodiversity conservation: AI is used to monitor ecosystems, detect deforestation, and protect natural habitats, contributing to biodiversity conservation.
Waste management: AI can optimize waste collection routes, improve sorting, and promote recycling, reducing the amount of waste reaching landfills.
What does the future hold?
AI will be a powerful tool in achieving the Sustainable Development Goals (“SDG”), being able to improve energy efficiency in buildings and cities, optimize natural resource management, and enable the development of more sustainable materials and processes. Studies indicate that AI could facilitate meeting 79% of the SDGs, and up to 93% when considering only environmental SDGs.
This is already a reality for many companies. Similarly, McKinsey and Company elaborates on how 60% of companies believe AI is key to achieving the SDGs in the future. Moreover, their experts think AI can help address other challenges, such as poverty, inequality, climate change, and resource scarcity. The study also reveals that companies using AI to drive sustainability tend to be more innovative and competitive.
Specifically, a sustainability area where AI stands out is in optimizing natural resources, playing a crucial role in the transition to a circular economy by facilitating waste management and promoting the reuse and recycling of materials. Google highlights that Artificial Intelligence may reduce carbon emissions by up to 10%, as well as optimize production processes, improve energy efficiency, and encourage the adoption of renewable energy sources. Google also notes that companies investing in AI and sustainability often experience greater growth and enhanced brand reputation.
Addressing the challenges AI poses for sustainability, UNESCO emphasizes the importance of developing “green” AI that minimizes environmental impact and energy consumption. The organization also stresses the need for a holistic approach that considers the social and ethical impacts of AI and promotes collaboration among diverse stakeholders to ensure a fair transition to a more sustainable economy.
In conclusion, the synergy between Artificial Intelligence and sustainability is at a tipping point. With its ability to analyze large amounts of data and learn from it, AI is becoming an indispensable tool for tackling the environmental and social challenges we face.
However, its development and application must be accompanied by ethical and social reflection to ensure that the benefits of this technology are distributed equitably, and that existing inequalities are not worsened. Additionally, it is necessary to address the sustainability challenges of AI developments, such as energy consumption and electronic waste generation. To harness the full potential of AI and build a more sustainable future, fostering collaboration between scientists, engineers, policymakers, and civilians is essential.
Do you want to take the next step toward a greener future? At Renaiss, we are experts in developing AI solutions based on sustainable and efficient infrastructure. Contact us to explore how we can help your company achieve its ESG goals through Artificial Intelligence.