AI & Climate Change : Opportunities and challenges for a sustainable future

Today, it is clear that artificial intelligence will become a world changing technology, boosting innovation and productivity across every sector of the economy. Microsoft’s Vice Chairman and President, Brad Smith, has stated that “In many ways, artificial intelligence is the electricity of our age”. AI is seeing rapid adoption, driven by massive investments into data centers and AI infrastructure by the technology giants and the emergence of GenAI services like OpenAI’s ChatGPT. AI also promises to make significant contributions to accelerate the transition to a greener economy. But this technological revolution is still in its early days and already represents a significant immediate risk for the Earth’s resources. As demand for AI continues to grow, the energy intensity and carbon footprint of the data centers that support this technology also increase. 

In light of these challenges, how can sustainable investors effectively navigate and engage with the transformative theme of AI while addressing its
environmental impact?