How AI is leading to a more sustainable world

Technology and sustainability are without doubt two trends which are becoming ever more visible in our lives and in business processes. Lazlo Belgrado, Chief Investment Strategist at KBC Asset Management, sees a link between the two trends.

“Artificial intelligence is a broad container term for technology in which computers mimic human intelligence, for example with logical thinking and problem-solving. That technology can be very useful for businesses, which are sitting on mountains of data.

AI enables them to analyse this data quickly and efficiently, in turn generating practical solutions for real-world problems. AI can thus help companies to address challenges around sustainability in a practical way.”

According to Lazlo Belgrado, the power of AI in the context of sustainability can be clearly demonstrated. “Take the challenge of energy-efficiency: AI enables you to determine the moments at which you are consuming a lot of energy. Based on the energy supply, electricity meters could tell you the best time to charge your electric vehicle or turn on the washing machine. This could enable wind or solar energy to be distributed efficiently.”

Another challenge is mobility. Lazlo Belgrado: “Autonomous vehicles could be used as a kind of taxi that people can call up using an app. The system then summons the taxi that is closest to hand. People then no longer need to have a car themselves, helping us ensure that we don’t manufacture too many cars. Autonomous vehicles could also reduce the pressure on parking space, reduce the number of transportation movements in cities, increase traffic safety and, given the lower production, open the way for improved air quality.”

Agriculture also stands to benefit from AI. You can take decisions based on data gathered using AI, for example by discovering at an early stage whether certain crops are infected. Lazlo Belgrado completes the story with examples of automatic waste sorting, smart water management and customised clothing advice. “When companies invest in AI, that not only brings added value for those companies themselves, but also for the environment and society”, he concludes.

There's no shortage of examples, but it still doesn't sit easily with some people. Isn't there an ethical tension between AI and sustainability? “I’d refer to what Professor Katleen De Stobbeleir from Vlerick Business School calls the ‘paradox-mindset’”, says Lazlo Belgrado.

“It’s not an ‘either, or’ recovery, it’s a ‘both ...and’ recovery. You look at both the opportunities that AI can bring and at the ethical frameworks within which that is possible.”

That’s also why KBC focuses in its own SRI methodologies on data privacy and protection of personal data. “Data gathering using AI can lead to privacy infringements, and that’s something we want to avoid”, explains Lazlo Belgrado.

“So we rate companies on the way they collect, use and protect confidential data on customers, patients or visitors to their website. We also look at their cyber security measures and their transparency in sharing information with authorities,” Lazlo Belgrado adds.