AI's Dual Impact on Corporate Sustainability: A Balancing Act

Artificial intelligence (AI) has the potential to play a vital role in corporate sustainability. However, the significant amount of energy required to run the technology poses a substantial threat to its potential benefits. Widespread adoption is expected to cause a 160% surge in data center energy demands by the start of the next decade, undoing previous gains in operating efficiency.

A recent survey from Salesforce and YouGov highlights this dilemma, with 81% of sustainability professionals agreeing that lowering AI's carbon footprint is essential. At the same time, 58% believe it can have a net positive impact on the climate crisis.

Sustainability professionals are using AI in various ways, including improving energy efficiency, monitoring energy consumption, predicting energy use, and ensuring compliance with environmental standards. However, not everyone is convinced that AI will be a boon for sustainability. Almost 40% of respondents expressed concerns that it will do more harm than good for their company's sustainability.

The use of AI in corporate sustainability raises important questions about its potential impact. While AI can be used for beneficial purposes such as tracking energy use and monitoring, it is often used for mundane tasks that save minimal amounts of time and consume excessive energy. To harness the potential of AI in corporate sustainability, it is crucial to draw a line on its use. AI should be reserved for tasks that make a significant difference, such as scientific projects, medical care, or energy monitoring, where its emissions and energy use can be justified.

The need for transparency and intentional energy efficiency in AI use cannot be overstated. Users are largely unaware of the environmental consequences of AI, and companies are often opaque about their energy consumption. A rating system for AI, similar to Energy Star, would help bring transparency to the industry.

In the meantime, companies can take steps to reduce the environmental impact of their AI use. This includes choosing models with smaller parameters, using efficient hardware, and powering data centers with renewable energy.Ultimately, the benefits of AI in corporate sustainability can outweigh the harm if used responsibly. Companies must limit AI use to areas where it can make a real difference and prioritize transparency and energy efficiency.

The use of AI in corporate sustainability is at a critical inflection point. As AI innovation continues to accelerate, it is essential to take precautions to ensure that its potential benefits are not overshadowed by its environmental impact.Salesforce is working with the AI firm Hugging Face to bring transparency to the industry and develop a rating system for AI. The company is also exploring ways to reduce the environmental impact of its AI use, including using smaller models and powering data centers with renewable energy.