Can AI Really Help Businesses be More Sustainable?

AI has the potential to reduce annual emissions by between three and six gigatons of carbon dioxide equivalent by 2035, according to the World Economic Forum. 

In response to this, SAP has published a whitepaper, AI and Sustainability at SAP, setting out how the company applies the technology to support sustainable business practices while also ensuring it develops in ways that reduce its environmental impact.​​​​​​​

Delivering a sustainable AI strategy

SAP’s strategy centres on reducing the environmental footprint of AI, particularly in relation to energy consumption. 

The whitepaper describes how it plans to enhance the energy efficiency of its AI offerings, helping to cut emissions while also optimising costs across the value chain.

All AI assets and processes under SAP’s direct operational control are designed with energy consumption optimisation in mind. 

According to the whitepaper, continuous monitoring and active management of emissions linked to AI will be essential to maintain efficiency improvements as costs decrease in the future.

The company has also developed a Global AI Ethics Policy. 

This sets out rules for the development, deployment, use and sale of AI systems, with the goal of supporting ethical and socially responsible AI adoption by businesses and other organisations. 

The policy aims to pre-empt economic, political or societal concerns that may emerge with the adoption of AI technologies.

SAP wants its responsible AI approach to extend beyond its own operations. It aims to build responsible AI data supply chains by working with partners and engaging its wider network. 

Matthias Medert, Global Head of Sustainability at SAP, writes on LinkedIn: “AI is reshaping how the world works. But as its impact grows, so does our responsibility to ensure it scales sustainably. As AI becomes more powerful, it must evolve within planetary boundaries and be guided by strong ethical principles. 

“Together, we are rethinking how AI is built, deployed and governed, balancing performance with efficiency and innovation with accountability.”

AI use cases across enterprise functions

SAP highlights ways in which AI can support sustainability outcomes across global business functions. Its whitepaper focuses on how SAP Business AI can automate the processing of internal and external data sources, for example. 

A process that helps turn insights into action and supports decision-making.

SAP also gives examples of how AI may be applied by C-suite executives. For instance, Chief Financial Officers and Chief Sustainability Officers can use the technology to generate sustainability reports in 80% less time. 

This could help organisations meet reporting obligations more efficiently and allocate resources to other strategic priorities.

For Chief Operating Officers, AI can contribute to building efficient supply chains. 

Optimisation algorithms assist with more accurate demand forecasts and enhance demand sensing in production plants and warehouses. These applications may help streamline logistics and reduce waste.

Dominik Asam, Chief Financial Officer at SAP, comments: “The future of sustainability lies in connecting carbon and financial data in the Green Ledger – managing cash and carbon with the same rigour. 

“With AI, we can raise data quality, automate compliance across hundreds of global regulations and identify the smartest investments for decarbonisation. This is how we move from reporting sustainability to steering it as real business value.”

Microsoft’s AI infrastructure development

Microsoft is also active in aligning AI development with sustainability goals. 

The company has introduced its Community-First AI Infrastructure, which outlines how it plans to build, own and operate data centres in a way that supports local communities.

This approach includes covering the cost of electricity used by its data centres, replenishing water drawn during operations, creating jobs for local residents and offering AI-related training in the communities where it operates. 

Microsoft links this to a broader economic strategy. The company positions infrastructure expansion as essential for both economic growth and ongoing improvements in people’s lives. 

This approach connects the expansion of AI capabilities with social and environmental responsibility.

Melanie Nakagawa, Chief Sustainability Officer at Microsoft, says: “AI is changing the world faster than any other innovation in history. The speed of its adoption, the surge in its demand and the rapid evolution of its capabilities are unlike anything we’ve seen before. 

And like breakthrough technologies that have come before – including electricity, cars, aviation and the Internet – building the AI economy requires investments in new infrastructure.”

Together, SAP and Microsoft provide case studies in how enterprise organisations are embedding sustainability into AI development, operations and deployment, while outlining the broader role that AI can play in helping other businesses meet environmental and operational goals.