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AI and sustainability: how artificial intelligence is revolutionizing environmental protection

Jörg Wachsmuth
Senior Sales Consultant, Content Collection Content Kit, Haufe Akademie
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AI and sustainability don't have to be a contradiction in terms
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Artificial intelligence consumes enormous amounts of energy - at the same time, it opens up completely new ways of doing business sustainably. While the training of AI models pushes data centers to their limits, intelligent algorithms help companies to save resources, reduce emissions and assume social responsibility. AI and sustainability have a tense relationship: how can you exploit the potential of the technology? This article shows you practical solutions and concrete use cases for sustainable AI management in your company.

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Artificial intelligence and its energy consumption

experts estimate that each AI query on ChatGPT consumes around three watt hours of electricity - ten times more than a Google search. That doesn't sound like much, but with 300 million weekly active users (source), it adds up to a huge amount.

Forecasts predict that global AI systems will consume a total of over 80 terawatt hours per year - equivalent to the electricity requirements of countries such as the Netherlands or Sweden.

Data centers already account for 4 to 5 % of global energy consumption, and experts fear that this figure will rise to up to 30 % in the coming years. But high energy consumption is not the only problem: ChatGPT requires around half a liter of water per chat to cool the servers. Training the system has already consumed around 700,000 liters of water(source).

Opportunities to make AI models more sustainable

The good news: you can reduce the energy consumption of your AI applications. Three green AI approaches have proven to be particularly effective for AI in the company:

  • Use open source approaches: Instead of training your own models from scratch, use proven open source solutions. You can adapt models such as BERT (Bidirectional Encoder Representations from Transformers) or LLaMA (Large Language Model Meta AI) to your specific requirements through targeted fine-tuning - with a fraction of the original energy expenditure.
  • Implement data minimalist approaches: Less is more: reduce your data sets to the essentials. Intelligent data cleansing and selection can reduce training time without compromising model quality. Techniques such as data pruning remove redundant information and speed up training considerably.
  • Follow Green AI principles: Green AI prioritizes efficiency over pure performance. Choose algorithms that require less computing power, even if they are minimally less precise. Use energy-efficient hardware and optimize your model architecture for lower power consumption.

These measures not only reduce your energy costs, but also position your company as a pioneer in the responsible use of AI.

Further training in the area of sustainability

Sustainability is an important but also complex topic. After all, sustainability is more than just biking to work or sorting trash. The sustainability training courses offered by Content Collection provide a comprehensive overview of the topic and help you embed sustainability throughout your entire company.

Discover Content Collection and Haufe Akademie now

Practical examples: AI makes companies more sustainable

Artificial intelligence is conquering the corporate world - but so far mainly for economic reasons. Most AI projects focus on increasing efficiency, reducing costs and automating processes. However, a paradigm shift is emerging. The following areas of application show this: Intelligent systems can drive ecological, economic and social sustainability.

Energy efficiency in production

Imagine a production facility in which intelligent algorithms analyze production data in real time and automatically adjust temperature, pressure and machine settings.

The result: lower energy consumption with the same production output. AI-supported systems detect inefficiencies that people miss. They optimize heating and cooling systems, switch off unused machines and coordinate production processes for maximum energy efficiency.

Henkel shows how it can be done: the Group has reduced its energy and emission values by 50% since 2013 using AI and digital systems. Read more in the article "Sustainability through artificial intelligence: what is possible?"

AI in the circular economy

These two companies demonstrate how AI can contribute to greater sustainability in the circular economy:

AI in the textile industry AI in waste management
The textile industry has long been considered a polluter - AI is changing that. The fashionsort.ai project automatically sorts used textiles for efficient recycling. Image recognition algorithms distinguish materials, colors and quality levels with 95% accuracy. The RecycleBot goes even further: AI-optimized sorting processes increase the recycling rate of plastic waste by 40%. Sensors recognize different types of plastic and automatically direct them to the correct recycling channels.

Optimization of supply chains and logistics

DHL shows how AI is revolutionizing the last mile: The logistics group is already using intelligent systems that drive sustainability and efficiency in equal measure:

AI forecasting models analyze each individual shipment and create optimal route sequences. These take into account all the important variables for the best possible route and provide customers with precise information about the expected delivery time.

The optimized route avoids additional journeys and unnecessary stops. This makes a decisive contribution to fuel efficiency. In addition, an AI-supported journey analysis and a driving behaviour analysis are used: the system detects inefficiencies such as excessive idling times and helps drivers to optimize their fuel consumption.

Social sustainability through AI

Social sustainability means more than just fair working conditions—it encompasses equal access to health care, education, and participation in society. Here are just a few examples:

  • The development of new drugs takes many years and costs billions. AI drastically shortens this time span: algorithms analyze millions of molecule combinations in weeks instead of years and identify promising drug candidates.
  • AI is already outperforming human capabilities in cancer diagnostics : Image recognition algorithms detect tumors in X-rays and CT scans earlier and more precisely. Early detection saves lives and reduces treatment costs.
  • Care benefits from intelligent assistance systems. AI-supported sensors monitor vital signs around the clock and alert care staff in the event of emergencies. Robots assist with physically strenuous tasks and relieve the strain on staff. This improves the quality of care and working conditions.
  • AI supports social inclusion by breaking down barriers. Speech recognition software enables people with motor impairments to operate computers and smartphones. Real-time translation systems help people with limited language skills to communicate.

Appropriateness of the use of AI

Not every sustainability challenge needs artificial intelligence. You need to carefully weigh up when it really makes sense to use it. These five criteria will help you decide:

#1: Complexity as a yardstick

AI shows its strengths in complex problems with many variables. Energy optimization in large production plants with hundreds of machines, changing production cycles and fluctuating energy prices? This is where AI pays off. Controlling a single heating system according to fixed schedules? Simpler solutions are often enough.

Rule of thumb: The more data sources, dependencies and influencing factors the problem has, the more likely AI is to justify the resource consumption. For linear correlations with few parameters, it is better to use classic optimization methods.

#2: Type of task decides

AI is particularly suitable for four types of tasks: 

  • Pattern recognition in large amounts of data helps to uncover hidden energy wastage in production processes.
  • Forecasts based on historical data enable precise demand forecasts and prevent overproduction.
  • Optimization of processes with many parameters makes supply chains, for example, more efficient. 
  • Automation of repetitive decisions speeds up the sorting of recycling materials.

For simple if-then rules, static calculations or one-off analyses, classic programming is often more efficient and saves resources.

#3: Desired degree of automation

Clearly define how independently your AI system should operate. Fully automated systems are suitable for non-critical, repetitive tasks such as lighting control or temperature regulation. For important business decisions, AI should act as an intelligent assistant that makes recommendations while humans make final decisions.

#4: Criticality of the system

The more critical the impact of wrong decisions, the more cautious you should be. Safety-critical systems such as emergency shutdowns or medical devices require human supervision and backup systems. Non-critical applications such as the optimization of office lighting can be fully automated.

Create a risk matrix: How likely are errors and what consequences would they have? If the risk is high, invest in elaborate protection or do without AI.

#5: Quantify sustainability benefits

Companies are using energy-intensive AI systems to improve their environmental footprint. This sounds contradictory - but it works if you approach it correctly. The most important benchmark: does the sustainability benefit exceed the ecological footprint of the AI? 

Carry out a life cycle analysis and also consider indirect effects such as improved product quality or extended machine service life. The key is proportionality: an AI application that reduces the energy consumption of your production by 20% justifies its own electricity consumption many times over. It is important that you keep an eye on the net effect and avoid rebound effects.

Rebound effects

Rebound effects occur when efficiency gains through AI lead to unintended additional consumption. For example: AI optimizes production and reduces manufacturing costs by 30%. Instead of booking the energy saved as a sustainability gain, you increase production by 40% because it is now cheaper. The bottom line is that you use more resources than before. To avoid rebound effects, you should consciously use efficiency gains for further sustainability measures instead of for growth.

A Practical Guide to Sustainability Through AI

This concise guide shows you how to strategically use AI to enhance sustainability in your company. Follow the eight phases to make the most of your resources and achieve measurable results.

Phase 1: Development and Implementation of a Sustainability Strategy

Conduct an assessment: First, analyze your current environmental, economic, and social footprint. Track metrics such as energy consumption, emissions, waste volumes, and social indicators. This data will serve as the foundation for all subsequent steps.

Involve stakeholders: Engage management, employees, customers , and partners in the strategy development process. Sustainability can only succeed if everyone involved is on board. Conduct workshops and gather ideas from different perspectives.

Defining Your Vision and Mission: What Is Your “Why”? Formulate a clear sustainability vision for your company. Where do you want to be in five years? How does your company contribute to a sustainable future? This vision must be authentic and understandable to all stakeholders.

Phase 2: Set Sustainability Goals

Develop specific and measurable goals: Instead of vague statements of intent such as “use less energy,” set specific goals such as “reduce CO₂ emissions by 30% by 2028.” Distinguish between short-, medium-, and long-term goals.

Prioritization by Impact: Evaluate potential goals based on their sustainability impact and feasibility. Prioritization also helps determine whether a goal might only be achievable in the medium term. Therefore, focus first on quick wins with a high impact. This generates motivation and resources for larger projects.

Establish measurable metrics: Define specific metrics for each goal, such as CO₂ emissions per product, energy consumption, recycling rate, or diversity index. Without measurable metrics, you can neither evaluate the success of your sustainability initiatives nor manage them effectively.

Phase 3: Identify Sustainability Challenges

Systematic Problem Analysis: Systematically examine your value chain, from raw material procurement to disposal. Where do the greatest environmental impacts occur? What social challenges exist?

Formulate the technological problem: Translate these challenges into specific technical questions. “Excessive energy consumption” becomes “Optimizing production planning to minimize peak loads.” This level of precision is crucial for the successful use of artificial intelligence.

Potential Assessment: Quantify the potential for improvement for each challenge. How much CO₂ could you save through better route planning? These figures will help with prioritization later on.

Phase 4: A Conscious Decision for or Against AI

Complexity Assessment: Evaluate and document each problem using the following five criteria: complexity, nature of the task, degree of automation, criticality, and sustainability benefits. To do this, it is important to establish measurable and comparable scales and to define the sustainability benefits—are there any alternatives?

Alternative Check: For every problem, start by exploring simpler solutions. Often, process optimization, training, or better measurement systems can already achieve 70 percent of the desired result—without the need for AI.

Final decision: Use AI only when the sustainability benefits significantly outweigh the resource costs. For simple problems, rely on traditional optimization methods.

Phase 5: Review of Requirements

Ensure data quality: AI requires high-quality data. Check the availability, completeness, timeliness, and accuracy of your data sets.

Assess your technical infrastructure: Do you have sufficient computing capacity? Are your IT systems suitable for AI integration?

Plan for skill development: Identify skill gaps in your team. Schedule training or bring in outside expertise where key skills are lacking.

Looking for the right e-learning courses?

Our e-learning content library, "Content Collection," offers a selection of e-learning courses on artificial intelligence, data, digital transformation, and sustainability in business.

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Phase 6: Project Planning and Technology Selection

Make-or-Buy Decision: Evaluate the AI solutions available on the market before developing your own. Open-source models or specialized providers are often more cost-effective and faster than in-house development. Be sure to prioritize data security.

Define the project structure: Form interdisciplinary teams comprising members from sustainability, IT, and subject matter experts. Clearly define roles, responsibilities, and communication channels. Agile methods are well-suited for AI projects. Also, define clear milestones and success criteria for your teams.

Phase 7: Implementation

Iterative Development: Develop in short sprints and test regularly. AI projects are experimental—expect to make course corrections during development.

Involve stakeholders: Engage users from the very beginning. Continuously gather feedback and adjust the solution accordingly. Change management is particularly important in AI projects.

Conduct a pilot phase: Conduct a limited pilot phase, gather insights, and resolve any issues before rolling out the initiative company-wide.

Phase 8: Evaluation and Continuous Optimization

Establish a system for measuring success: Regularly measure the sustainability impact of your AI application. Compare actual values with target values and document any deviations.

Implement optimization cycles: AI systems learn continuously. Establish regular review cycles to continuously improve models and integrate new data sources.

Plan for scaling: If pilot projects are successful, plan to expand them to other areas. Apply the lessons learned and leverage synergies between different AI applications.

FAQ

How can AI help companies become more sustainable?

AI can analyze large amounts of data, identify patterns, and optimize complex processes. Companies can use it, for example, to reduce energy consumption in production, improve delivery routes, avoid overproduction, or sort recyclable materials more efficiently. The key is that the sustainability benefits achieved must exceed the resources consumed by the AI.

What is Green AI?

Green AI refers to the development and use of AI systems that are as resource-efficient as possible. This includes smaller or pre-trained models, targeted fine-tuning, reduced datasets, energy-efficient hardware, and data centers powered by renewable energy. The goal is to limit energy and resource consumption throughout the entire life cycle of the AI.

When does it make sense to use AI to achieve sustainability goals?

AI is particularly useful when a large amount of data, influencing factors, and interdependencies must be taken into account—such as when controlling complex production facilities or supply chains. For simple calculations, fixed rules, or one-time analyses, traditional software solutions are often more resource-efficient. Before implementing AI, companies should therefore also consider simpler alternatives.

How can the sustainability impact of an AI application be measured?

Companies should weigh the resources consumed by AI against the benefits it delivers. Relevant metrics include, for example, energy consumption, CO₂ emissions, material use, waste volume, and transportation kilometers avoided. In doing so, they should consider the application’s entire life cycle and take potential rebound effects into account.

What skills do employees need for sustainable AI projects?

In addition to basic AI proficiency, employees need an understanding of sustainability goals, data quality, data protection, and ethical risks. It is also important to be able to critically evaluate results and assess the resource requirements of an application. Interdisciplinary teams comprising members from IT, sustainability management, and line of business departments provide a solid foundation for this.

Jörg Wachsmuth
Senior Sales Consultant, Content Collection Content Kit, Haufe Akademie
As a Senior Sales Consultant at Haufe Akademie , Jörg is responsible for Haufe Akademie on digital learning solutions and e-learning content. Learning platform technologies, talent management, and digital content have consistently been the common thread throughout his career, during which he has held leadership positions at well-known providers. His openness to technology and his conviction that adaptive, lifelong learning is the key to a company’s future viability shape his consulting philosophy and his perspective on modern learning solutions.
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