The global economy is confronting severe environmental challenges, including climate change, biodiversity loss, and pollution. These crises demand an urgent systemic transformation alongside an estimated $4 trillion in annual climate investments by 2030. Emerging markets and developing economies (EMDEs), where investment needs are highest, have the most potential to leapfrog traditional technologies. For instance, Africa, with 60% of the world’s prime solar resources, received less than 2% of global clean energy investments in 2023.
The transition to a sustainable economy is not merely a cost but an opportunity for innovation, efficiency, and inclusive growth. Artificial Intelligence (AI) plays a pivotal role in this transformation by accelerating innovation and systemic change, offering significant potential to address climate challenges while fostering economic resilience.
How AI is Accelerating the Transition
AI is a transformative tool in five key areas critical to combating climate change:
- Transforming Complex Systems
AI optimizes interconnected systems like energy grids, transportation, and land use. For example, DeepMind’s wind energy optimization improved renewable energy value by 20%, showcasing AI’s potential to enhance renewable integration and productivity, particularly in regions with underdeveloped infrastructure. - Accelerating Discovery and Innovation
The International Energy Agency (IEA) estimates nearly half of emissions reductions by 2050 will come from technologies not yet fully developed. AI accelerates innovation, as seen in DeepMind’s AlphaFold, which decoded over 200 million protein structures, advancing fields like alternative proteins and energy storage. - Driving Behavioral Change
AI empowers individuals to make climate-friendly choices. Google Maps’ eco-friendly routing, for example, helps reduce CO2 emissions by suggesting optimized routes. In its early rollout in Europe and the US, it prevented over 1 million tonnes of CO2 emissions annually, equivalent to removing 200,000 cars from the road. - Improving Climate and Policy Modelling
AI enhances climate predictions and policy assessments. Tools like Google’s FloodHub provide real-time flood warnings, enabling proactive disaster management and improved policymaking. - Enhancing Adaptation and Resilience
AI aids in long-term climate adaptation, such as drought forecasting and water resource management. By identifying vulnerabilities, it enables targeted interventions that enhance resilience and stability.
AI’s Quantifiable Climate Impact
Focusing on the power, food, and mobility sectors—responsible for half of global emissions—AI can accelerate low-carbon technology adoption:
- Power: AI-driven efficiency improvements in renewables could cut emissions by 1.8 GtCO2e annually.
- Food: Accelerating alternative protein adoption could reduce meat and dairy consumption by 50%, saving 3 GtCO2e annually.
- Mobility: AI-optimized EV adoption and shared transport could lower emissions by 0.6 GtCO2e annually.
While these figures are promising, AI’s energy demands, particularly from data centers, could generate an estimated 0.4–1.6 GtCO2e annually by 2035. However, the net impact remains overwhelmingly positive if AI is purposefully applied to low-carbon technologies.
Collaborative Action for AI-Driven Growth
AI’s transformative potential requires coordinated efforts across governments, businesses, and civil society:
- Build infrastructure and skills for AI deployment, especially in EMDEs.
- Incentivize investments in AI applications with high social and environmental returns.
- Regulate AI to ensure energy efficiency and promote renewable-powered data centers.
Equity is crucial. Without deliberate action, the Global South risks being left behind. Governments must act as stewards, ensuring AI supports global inclusivity.
A Vision for the Future
AI offers unparalleled opportunities to address climate risks while driving innovation and economic growth. With its capacity to reinvent systems and accelerate discoveries, AI aligns with net-zero goals. The question is not whether AI can contribute but whether stakeholders will act decisively to harness its transformative power.
Guided with purpose, AI can help build a sustainable, equitable, and prosperous future for all.
