Artificial intelligence has already cemented its place in the foreseeable future of work. But before organizations start leaning too heavily on the new tech, they should stop and consider whether increasing AI could in turn decrease their commitment to sustainability.
Eighty-eight percent of CEOs reported existing or planned investments towards AI-driven products or service innovations, according to recent data from EY. Of those, 38% said they prioritize sustainability issues when making those capital allocation decisions. And yet, 65% of CEOs admit that more work is still needed to address the existing ESG risks that come with an increased use of AI.
"With the excitement and enthusiasm that comes with new technology also comes a risk to the sustainability side of things," says Kami Hoskins, senior director of legal and head of corporate sustainability and ESG at web hosting platform GoDaddy. "This means making sure that we're all using AI ethically and responsibly."
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Without the proper attention and guidelines, AI has the potential to disrupt ESG and sustainability goals on multiple fronts. For example, the data center industry, which powers the AI applications organizations are turning to, is estimated to contribute 2% to 3% of global greenhouse gas emissions, according to the CFA Institute. And while different AI applications have different carbon footprints, the volume of stored data is growing exponentially, leading to greater energy consumption and e-waste.
One of the larger, more immediate concerns, however, is how AI could negatively impact the more social and governance-focused initiatives — which regulate things like employee discrimination and regulatory data — companies are trying to put in place, according to Hoskins.
"These tools have the power to create new content that is not accurate," she says. "It is really important to make sure that the inputs that companies are putting out into an AI tool is also going to give you effective outputs."
GoDaddy recently rolled out a new AI tool named Airo, which automates several parts of the website-building process for small businesses. In an effort to ensure that their own sustainability goals remained at the forefront of the launch, Hoskins and her team put together an AI and machine learning council meant to ensure that the tool's use remains ethical and responsible.
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"A critical part of the process is understanding what the boundaries are," Hoskins says. "It also means understanding the limitations that come with new technology [like AI] — like emerging laws and regulations — and really thinking about how that could land on employees and how it might impact customers."
But the risks should not outweigh the potential rewards, Hoskins notes. Done correctly, AI can just as easily positively impact a company's sustainability efforts. According to EY, AI has the potential to make significant improvements to things like energy management, corporate governance, access to equitable resources and transparent data. Experimenting with AI and encouraging employees to engage with AI within guardrails will be pivotal to making these improvements a reality.
"This technology is only going to continue to evolve, so it's really important to start understanding how it's affecting your existing goals now," Hoskins says. "That way, by the time the new iteration comes out, you're already using it responsibly and ensuring the long-term sustainability of your company for future generations."
