AI + sustainability: A market advantage
A recent report, A New Pace of Change: Industrial AI x Sustainability, created by Reuters in collaboration with Siemens, underscores the vast untapped potential of industrial AI to reshape industries and drive sustainability at scale. The report highlights that AI can serve as a “supercharger” for industrial transformation, enabling companies to scale and optimize clean technologies such as renewable energy, energy-efficient manufacturing, and electric vehicles. However, the report also points out that the full potential of AI is still in its early stages. While AI is playing a crucial role in improving efficiency, companies must invest heavily in technology, expertise, and data to fully capitalize on its capabilities.
There is reason for optimism. AI-driven sustainability is already reshaping industries by optimizing operations, reducing waste, and enabling new business models. In industrial sectors, companies like Siemens are pioneering the use of digital twin technology to create real-time virtual models of industrial processes. These digital twins allow for predictive maintenance, improved energy efficiency, and waste reduction, setting a new standard for sustainable manufacturing.
This potential is not just theoretical. A simulation by SystemiQ demonstrates that AI could play a pivotal role in reducing global carbon emissions by up to 6 gigatons of CO2-equivalent by 2035 through the acceleration of low-carbon technologies. The study shows how AI can improve efficiency across key sectors: optimizing energy production and distribution from renewable sources; enhancing the scalability of alternative protein sources; and improving the adoption of electric vehicles through predictive maintenance and smarter infrastructure.
Beyond industrial applications, AI is driving the transition toward a circular economy. Decathlon, for instance, uses AI-powered reverse logistics to streamline product reuse and recycling, ensuring that materials are repurposed instead of discarded. IKEA is also leveraging AI to predict product lifespan, optimize resale programs, and guide customers toward more sustainable purchasing choices, reducing overall waste and promoting environmentally friendly consumption habits.
The impact of AI extends to urban infrastructure and mobility as well. NEOM, the ambitious cognitive city in Saudi Arabia, is incorporating AI for energy efficiency, water management, and emission-free transportation. One of its key projects, The Line, eliminates car dependency by implementing AI-powered mobility solutions that prioritize sustainability. In addition to The Line, NEOM is developing Oxagon, the world’s largest floating industrial hub, which will feature automated logistics, renewable energy plants, and AI-enabled manufacturing processes. These ambitious projects represent a new era of urbanization, where technology and sustainability work in tandem to create smarter, greener cities. Similarly, Singapore has adopted AI-driven traffic management systems to minimize congestion and emissions, creating a smarter and more sustainable urban environment.
By integrating AI into sustainability efforts, businesses and governments are unlocking new opportunities for innovation and long-term competitiveness. This convergence is not just a trend – it is shaping the future of industry, commerce, and urban living, ensuring that economic growth and environmental responsibility go hand in hand.