Sammy Lakshmanan, ESGDive.com, January 2, 2025
The rapid evolution of artificial intelligence is redefining how industries operate, and its influence on sustainability is no exception. AI will be a value play and a key enabler of sustainability, according to PwC’s 2025 AI Business Predictions. AI can help businesses address top investor priorities, such as reducing carbon emissions, building resilient supply chains and advancing renewable energy adoption — all while helping to balance a growth strategy, meet regulatory demands and mitigate climate risks.
To harness AI’s value, companies can align AI initiatives with sustainability priorities, refine data collection for meaningful insights and actively manage AI’s environmental footprint. The payoff for such investments could include sustained business outcomes that balance sustainability with growth and profitability, smarter decisions that facilitate regulatory compliance and faster progress toward a low-carbon economy.
Investor sentiment underscores the urgency to get this right. PwC’s 2024 Global Investor Survey found that 64% of investors support increased spending to reduce carbon emissions, and nearly three-quarters would prioritize businesses taking tangible climate actions like innovating products (77%), strengthening supply chains (80%) and scaling renewable energy (72%). Pairing these efforts with AI can help businesses drive efficiency, uncover opportunities and deliver measurable results.
AI is accelerating the energy transition
AI has the power to revolutionize energy systems and transform how energy is generated, distributed and consumed. Companies can leverage AI-driven insights to optimize renewable energy integration, improve grid performance and reduce waste. For instance, energy providers are using AI to fine-tune wind farm operations, while agricultural enterprises are employing AI to boost energy efficiency in irrigation and storage processes. These applications highlight how predictive analytics can deliver more accurate energy demand forecasts, enabling industries to allocate renewable resources like wind and solar more effectively.