Under the transformative Vision 2030, Saudi Arabia is working to achieve sustainability across various sectors for a better future that supports the efficient use of resources.
The Kingdom has made major strides in harnessing artificial intelligence (AI) and is rapidly moving towards becoming a global leader and regional hub for cutting-edge technologies. AI has a massive potential to advance sustainability and support Vision 2030 objectives, according to a new report.
AI Potential
The Future Investment Initiative (FII) Institute, in collaboration with the international management consulting firm Arthur D. Little (ADL), issued a comprehensive white paper titled “The Role of AI in Sustainability: Boon or Bane?”. The white paper highlights the AI transformative potential in driving sustainability across various sector.
Moreover, it expects AI to enhance energy infrastructure and reduce operational costs, further supporting the objectives of Vision 2030. The white paper also pointed to AI’s ability to address the inherent challenges.
Promoting Sustainability
The white paper notes that AI can play a substantial role in the global campaign for sustainability. It can drive positive change in two main areas: the corporate and government domains, as organizations seek to integrate sustainability into their operations and cut their carbon footprint.
In the light of this, ADL identifies three key perspectives regarding how AI can boost sustainability efforts across various sectors. It summarizes these three perspectives to: Enhance, Transform and Adapt.
Boosting Business Models Sustainability
The “Enhance” angle aims to make the current operations and business models more sustainable. AI can reinforce the existing assets and business models with an additional layer of solutions to further enhance sustainability. In many cases, these solutions can be implemented without impacting the smooth running of business operations.
According to ADL, AI can contribute to enhancing energy efficiency of the existing assets by optimizing operations, maintenance and performance. These AI applications can be pivotal in reducing greenhouse gas emissions, saving resources, boosting productivity, and improving security of supply.
Among prime examples for this are Google’s reduction of its data centers’ energy consumption by 40%, and IBM Watson’s AI-based system which helps farmers to reduce water consumption and increase crop yields.
Supporting Business Model Transformation
AI can play a key role in supporting transformation of business models with the aim of reducing environmental footprint, promoting profitability and competitiveness, and protecting businesses. To achieve this, companies can adopt new AI-based business models.
These applications of AI can help in decoupling economic growth from environmental degradation, generating revenue from new sources, and fostering customer satisfaction and loyalty.
The examples include the AI-based healthcare services provided by Babylon Health and Uber’s use of AI in its operations to optimize ride-sharing, which in turn reduces traffic congestion and pollution.
Preparing for Natural Disasters
Adapting and preparing for the impacts of climate change and natural disasters is essential for businesses and governments to enhance sustainability. AI can help in managing climate change’s risks and challenges. AI-based systems can contribute to discovering more heat-resistant materials, predicting the occurrence of natural disasters and coordinating response and recovery efforts.
This, in turn, can reduce the vulnerability of businesses and governments to climate change and natural disasters. Furthermore, it can boost their resilience and adaptation capacity, and reduce losses.
ADL points to the examples of MIT’s use of AI-based systems to design heat-resistant materials, and Google’s Tree Canopy project that helps cities in improving their tree cover.
Challenges Ahead
Despite its numerous advantages, the extensive use of AI can pose new ethical, legal and social challenges with regards to privacy, security and accountability. However, its environmental impacts are the most evident. This is due to AI’s high consumption of energy and water resources, exacerbating greenhouse gas emissions and water scarcity.
Moreover, AI is prone to making mistakes, which can be fatal in some industries such as nuclear power or aviation. Therefore, governments and businesses must carefully consider these risks when dealing with AI.
In conclusion, balancing AI and sustainability will not be an easy task. It will require different degrees of investment, different operating model setups, and a high degree of adaptability.
FII-ADL Collaboration
FII Institute is a non-profit organization run by the Saudi Public Investment Fund (PIF). It focuses on developing real-world solutions and actions in 4 main areas: AI and Robotics; Healthcare; Education; and Sustainability.
The white paper is the product of a collaborative effort between the FII and ADL, with the aim of utilizing technological innovations to create a sustainable future. On this occasion, the CEO of the FII, Richard Attias, said in a press release: “FII is dedicated to using innovation to address the world’s critical challenges.”
He added: “Our white paper with Arthur D. Little highlights how AI can transform sustainability, providing practical solutions for businesses and governments worldwide. By adopting these insights, we can make significant strides toward a more sustainable future.”
Similarly, Partner and Energy and Utilities practice Lead at Arthur D. Little Middle East, Adnan Merhaba, said: “Our collaboration with the FII Institute underscores the critical role of AI in driving sustainable development.”
“By leveraging AI’s capabilities, we can enhance existing business models, transform industries, and prepare for future challenges, ultimately contributing to a more sustainable and resilient future,” he noted.
