Artificial Intelligence (AI) has emerged as the hot new technology for all businesses, irrespective of industry. Sustainability teams have a task of managing the implications of AI on greenhouse gas emissions and evaluating use of AI in operations. There are numerous opportunities for this technology, but also drawbacks to consider:
Process Enhancements
Corporate sustainability is largely a process improvement exercise, whereby teams optimize business operations to minimize emissions. AI is well suited for these types of tasks. Teams can employ AI to process large volumes of operational data, identify trends, and surface opportunities for improvement. AI serves as a turnkey data analysis tool for teams to elevate their sustainability programs.
For example, Procter & Gamble uses AI to enhance its waste reduction initiatives. The company employs AI-driven analytics to identify areas where waste can be minimized in its manufacturing processes and packaging.1
Resource Demands
AI advancements don’t come without costs. Training AI, or machine learning, can consume both electricity to power, and water to cool, computing systems. Demands vary based on the degree of outsourcing. For example, a company that leverages software-as-a-service (SaaS) AI can have a much smaller consumption footprint than a company that develops their own AI in-house.
Google, a SaaS AI provider, reported the scale of resource consumption that stakeholders can expect from large technology platforms, consuming 25.9 terawatt hours of electricity and 6.4 billion gallons of water in 2023.2
Limitations
AI applications for business are still in their infancy and are not without faults. This isn’t necessarily a bug in the technology, but more so a result of data quality. Sustainability teams have only recently started tracking KPIs such as methane leakage, so AI that’s trained on this data will produce biased output.
Teams should also ensure that they’re engaging with AI in a secure environment, avoiding privacy risk. Unlicensed tools might lack security controls, so be weary of which tools you employ. AI is an impressive innovation that sustainability teams should investigate, but make sure to navigate responsibly.
Interested in deepening your understanding of sustainability topics? Explore our library of resources.
Tyler Soutendijk, Tellus Markets Corp.
(1) How AI is Helping P&G Ensure its Packaging is Reusable or Recyclable, MAD//Insight, June 2024, (2) 2024 Environmental Report, Google
