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15 minutes
Nov 28, 2023

Article


ABA

Old School Sustainability Is Obsolete

In this article from IBM's Institute for Business Value, a team of IBM experts explores how generative AI drives sustainability by enabling innovative solutions, optimizing operations, and minimizing environmental impact.

Generative AI and Sustainability Sustainable Business Transformation AI-Driven Environmental Efficiency Responsible AI Governance Hybrid Cloud for Sustainability

Takeaways

  • Generative AI integrates sustainability into business models by identifying patterns in environmental data and optimizing operations for both profitability and resource efficiency.
  • Successful integration requires collaboration among ecosystem partners, including researchers, technologists, and policymakers.
  • Generative AI’s environmental impact necessitates the use of existing models, energy-efficient coding, and sustainable IT practices.
  • Governance frameworks are critical to ensure generative AI initiatives align with sustainability principles and organizational values.
  • Investments in generative AI for sustainability are growing, with 69% of organizations planning to increase funding in this area.

Summary

Generative AI provides a transformative opportunity to merge profitability and sustainability goals. By leveraging its advanced analytical capabilities, companies can achieve resource efficiency, reduce waste, and address climate challenges more effectively. However, adopting generative AI requires organizations to overcome barriers in data quality, operational alignment, and environmental impact.

Generative AI Turns Sustainability Ideals Into Actionable Results: Generative AI transforms aspirations into measurable outcomes by optimizing production, reducing resource waste, and automating sustainability reporting. High-quality, transparent data is essential, with 83% of executives agreeing it is critical for sustainability goals.

Collaboration and Ecosystem Integration: Generative AI accelerates partnerships, enabling stakeholders across industries to co-create eco-friendly solutions like innovative materials and energy-efficient designs. Organizations adopting decentralized AI decision-making coupled with central governance report higher success in meeting sustainability goals.

Managing Generative AI’s Environmental Impact: Training large models consumes significant resources. Organizations can reduce this footprint by refining existing models and optimizing coding practices. Generative AI itself can enhance energy efficiency by designing better data centers and optimizing IT operations.

Actionable Steps:

Turn Tradeoffs into Win-Wins: Use AI to balance sustainability and profitability by identifying automation and optimization opportunities.

Collaborate Across Ecosystems: Share sustainability data with partners, democratize AI capabilities, and invest in upskilling employees on sustainability concepts.

Design Sustainable AI: Monitor energy use, focus on upgrading existing models, and implement robust governance to align generative AI with sustainability values.

Generative AI’s ability to scale sustainability initiatives is unmatched, but its environmental and operational implications must be managed responsibly to unlock its full potential.

Job Profiles

Data Analyst Business Consultant Sustainability Manager Artificial Intelligence Engineer Sustainability Task Forces

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