A Greener Tech

It’s no secret that AI requires a lot of energy to run. That why the heavy hitters tech – names like Amazon, Google, Meta, and Microsoft – have aims to spend more than half a billion dollars on data center construction in the near future. They’re facing increasing pushback from communities worried about environmental impact and electricity prices should those data centers be built in their neck of the woods. There’s also a push for, and already successful applications of, a greener AI that helps sustainability-minded organizations track and achieve their climate goals. 

Energy Optimization 

AI-driven machine learning algorithms are adept at analyzing energy usage, crunching large amounts of data to determine patterns and areas of inefficiency in large buildings. They can adjust energy demand for outdoor weather conditions and amount of sunlight to reduce costs and environmental impact by having systems deliver hot or cold air to the right places at the right times and back when natural conditions have indoor temperatures feeling just right. Google has used its DeepMind system lower energy demand in data centers by 40%. Verdigris uses AI to analyze electric panels and detect equipment degradation up to 48 hours before failure, saving emergency maintenance costs and optimizing performance. 

On a wider scale, AI is being put to work managing energy grids, helping expand their capacity. With a focus on energy orchestration software, GridAI gives aging grids with growing demand more flexibility to deliver power when and where it’s needed. GridAI’s model centers on real-time coordination of existing assets and allows hyperscalers to optimize the design of new data center infrastructure. Harvard’s PowerAgent agentic AI open-source community gathers tool, workflows, and model to study grids, providing utilities and grid operators with state-of-the-art technology to maximize capacity.  

Carbon Tracking 

It’s hard for companies of any size to track their emissions given all the sources spread throughout a supply chain. That’s not to mention the emissions put out by suppliers’ suppliers. Sustainable AI can generate automated emissions reporting based on an array of parameters. Good.Lab, a certified B Corp and member of One Percent for the Planet, has sustainability software that delivers emissions and climate-risk readiness reporting. Its GHG emissions calculator provides accurate reporting across Scopes 1, 2, and 3 to help companies manage calibrated emissions targets for compliance and competitiveness. 

It’s one of many ESG analytics platforms enabling organizations to hit climate targets. Workiva, for example, combines disparate data sources into a single source of truth, eliminating manual risk and ensuring data consistency from record to report. In addition to reporting across emissions scopes, the platform aligns sustainability narratives to mandatory and voluntary frameworks. Users can benchmark against peers and keep up with industry trends in sustainability. Nasdaq’s Metrio saves companies an average of 70% on ESG calculations and analysis and saves hundreds of thousands of dollars in report preparation by putting complex sustainability data into audit-ready disclosures. 

Supply Chain Transparency 

Emissions isn’t the only aspect of a supply chain where AI can lend transparency. Generative AI platforms can automate complex scenario planning, enabling faster and more accurate decision-making when the situation calls for quick action.  

“You can segment those into immediate next steps,” Corporate War Games founder Arjan Singh told Reboot. “Here’s what we’re doing in the next 24 hours, the next five days, the next month, and then it starts getting into the longer term.” 

By identifying inefficiencies and potential solutions, gen AI can save organizations big bucks. IBM saved $160 million in shipping and inventory costs by applying AI and automation to its own supply chain and offers consulting services to help others do the same. 

One case study is Finnish energy company Neste, which has transformed itself from an oil company into the world’s leading supplier of sustainable aviation fuel and renewable diesel. Neste revamped its sourcing strategy and now gets more than 90% of its renewable raw material inputs from waste and residue products. 

“At Neste, we are in the business of fighting against climate change, and we want to create a healthier planet for our children,” Marko Mäki-Ullakko, Neste’s head of integrated ERP, said. “Through our work with IBM on the integrated SAP project, we’re doing what we can to fulfill that promise.” 

Waste and sourcing insights like that can find hidden supply chain savings and solutions and bring them to the forefront. It’s those kinds of discoveries, things that might never occur to people, or would take years to think of, that can turn sustainability efforts into a growth driver for organizations.