Artificial Intelligence and ESG goals: benefits and challenges

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Artificial Intelligence is now recognised as one of the most promising technologies to address sustainability challenges. It represents a strategic resource for optimising business processes, improving operational efficiency and reducing environmental impact. According to the KPMG CEO Outlook 2024, 64% of CEOs consider AI a strategic priority, albeit without expecting immediate returns. In particular, AI is revolutionising supply chain management, waste reduction and the assessment of climate impacts, key factors in achieving ESG goals. AI-based technologies, such as machine learning and deep learning, can be used to collect and analyse environmental data in real time, predicting impacts and optimising resources. This helps businesses make more informed decisions, improving their over

AI plays a key role in supporting the 17 Sustainable Development Goals of the United Nations, as evidenced by numerous studies, including that of McKinsey. However, there are also concerns related to the use of AI in the context of sustainability, with some experts questioning its long-term positive impact. According to research by La Torre et al. (2023), AI can be both a powerful facilitator of innovative solutions and a hindrance, especially if not managed properly. The main problem concerns the high consumption of energy resources, which are needed to run data centres supporting AI. Indeed, the entire life cycle of AI, from production to use, has a considerable environmental impact, with CO2 emissions often higher than in other sectors. A significant example is the use of ChatGPT, which consumes 10 times more energy than a normal search on Google.

Companies are challenged to integrate sustainable practices not only into their production processes, but also into their business strategies and investments. The market is exploring the use of IA to address these challenges in an increasingly structured manner. Technologies such as machine learning, natural language processing (NLP), and robotic process automation (RPA) are emerging as key solutions to improve supply chain management and reduce the risk of non-compliance with ESG standards. According to studies by Cucari et al. (2023), these tools not only simplify data analysis, but also improve predictive ability, helping companies to proactively intervene on ESG risk factors, thus ensuring more effective and timely management. Artificial intelligence thus becomes an indispensable tool for the compliance and mitigation of ESG risks, helping to build a more sustainable future.

Despite its many advantages, AI also has critical aspects, especially with regard to its environmental and social impact. In particular, some criticism concerns the mining industry that powers AI: the extraction of rare minerals for the construction of electronic chips and the consumption of energy to power servers require strict control to limit the ecological impact. Moreover, as Crawford (2021) points out, AI could end up being concentrated in the hands of a few large companies, creating power inequalities and limiting transparency. It is crucial that technologies are developed and implemented ethically, ensuring transparency, accountability and social justice. Only then can AI truly become an ally in the ecological transition and avoid being a threat to the environment and society.

Europe is facing a double challenge: on the one hand, it is implementing the AI Act, which will come into force in 2025, to regulate the use of AI and protect privacy and human rights; on the other hand, it is investing massive resources in AI development. The European Union has planned massive investments in AI research, amounting to EUR 200 billion, to support innovation. However, the success of European AI will depend on the ability to develop adequate technological infrastructures, such as Gigafactories, to support the necessary computing power. In this context, France is trying to position itself as a leader in AI, thanks to its nuclear power, which accounts for some 71% of the country's energy needs. This makes it a strategic hub for investments in AI, a key step to prevent Europe from falling behind nations such as the United States and China, which are already at the forefront in this field

Artificial intelligence proves to be a powerful tool for If on the one hand it offers enormous opportunities to improve efficiency and promote sustainability, on the other hand it brings significant challenges related to resource consumption and social impact. Companies must address these challenges with a regulated and ethical approach, balancing innovation and responsibility. Only in this way can AI contribute to building a more sustainable and inclusive future, without becoming a threat itself.

This article has been realised within the project "Biodiversity services EU expansion" (CUP: E43D22000480009) in the framework of the Lombardy Region's call for tenders "PR FESR 2021-2027 - LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalisation of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting and regenerating biodiversity, supporting companies in defining customised climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany and France and prominent partnerships, 3Bee continues its expansion into international markets to create real impact through technology.