AI could play an important role in sustainability transition: ABN Amro
Artificial intelligence (AI) can play a valuable role in the transition to sustainability according to a new report published by ABN AMRO on Thursday. The bank believes that investors are increasingly interested in artificial intelligence that can contribute to complex issues like climate change and biodiversity loss.
The Dutch bank noted that since the introduction of the chatbot ChatGPT in late 2022, the field of AI has seen significant advancements. Major technology companies have been competing to develop new AI models capable of providing improved responses to complex queries and generating remarkable images and videos based on written instructions. This has led to a rapid acceleration of AI innovation and applications.
While there is much talk about the entertainment value of generative AI and possible productivity gains, ABN AMRO also noted that artificial intelligence is also being used to simplify the application of sustainability data, and to create entirely new materials. “Examples include green fuels, materials optimized for longevity and recyclability, or enzymes that can break down plastic,” the bank wrote.
AI can also help with the development of new designs. “For example, the technology can help personalize clothing so that the pieces produced better match market demand and reduce the negative environmental impact caused by unsold - and thus pointlessly produced - clothing.”
Another key area is virtual assistants, which engage in natural dialogues to address sustainability questions and offer advice based on diverse data sources.
Therefore, ABN AMRO considers artificial intelligence a prime example of a “twin transition” where digitalization and sustainability occur simultaneously and interact with each other. Companies that are more advanced in digitalization also perform better in sustainability.
However, the bank pointed out that developing AI has its costs, particularly in terms of the significant computational power needed to process vast data amounts and facilitate the learning process. In response, developers are exploring ways to make AI models more energy-efficient.
ABN AMRO also suggested that users of AI technology can contribute to reducing the environmental impact by being discerning in their choice of applications, implying that strategic and thoughtful use of AI can play a role in mitigating its ecological footprint.
