Artificial Intelligence & Sustainability: Can they co-exist?

The modern landscape is being reshaped by two immense forces: artificial intelligence (AI) and sustainability. Once the domain of science fiction, AI is now a dominant technological reality, while sustainability has moved past its inflection point to become a core business imperative. This unlikely and inescapable couple are the "twin transformers" of our time, leading to a simple but important question: can they co-exist?

At first glance, AI and sustainability may seem at odds, data centres consume over 400 TWh annually, with AI workloads driving nearly 20% (Bloomberg, 2025), raising concerns about energy use and environmental impact. AI, however, holds the potential to be pro-environment that aligns with some of the United Nations’ Sustainable Development Goals (SDGs). By harnessing AI to optimise resource use, identify inefficiencies, and enable smarter decision-making, organisations can reduce emissions and minimise waste, acting as a catalyst for scalable, data-driven sustainability solutions.

What about AI, Sustainability and Investments? Above all, client-centricity must always prevail. The CFA Institute has called for ethical considerations in the use of AI in this space with a culture conducive to client-centric AI innovation. They also suggested to further incorporate a risk management and governance framework incorporating regular model testing which would provide a level of comfort from a Sustainability perspective where governance and ethical lenses are being applied.

But can machines have morals? The real question is not about the fiduciary duty of the algorithm, but rather about the responsibility and accountability of those who design, deploy and utilise these systems, i.e. machines are inhibited as per their construct; they need to be embedded with the appropriate morals or ethics such that “moral decision making” can be enabled. 

Advances do not come without risk and the need to use technology responsibly should always be a non-negotiable with usefulness of AI and its potential impact on creating a more sustainable world remaining undervalued.  But a line remains as aspects such as trust, mutual understanding and the human spirit cannot be automated and may never be.

References

Bloomberg Professional Services. (2025, April). AI energy demand to climb in 2025–26 despite efficiency gains. https://www.bloomberg.com/professional/insights/artificial-intelligence/ai-energy-demand-to-climb-in-2025-26-despite-efficiency-gains/ (Date of access: July 17, 2025)

CFA Institute. (2022, October). Ethics and artificial intelligence in investment management: A framework. https://www.cfainstitute.org/about/press-room/2022/ethics-and-artificial-intelligence-in-investment-management-framework (Date of access: June 25, 2025)

ESG Analytics. (n.d.). How data is accelerating ESG. https://www.esganalytics.io/insights/how-data-is-accelerating-esg (Date of access: July 17, 2025)

Maiden, B. (2021, February). Meta-study underlines ties between ESG and corporate success. IR Impact. https://www.ir-impact.com/2021/02/meta-study-underlines-ties-between-esg-and-corporate-success/ (Date of access: July 17, 2025)

MSCI. (n.d.). ESG Ratings & Climate Search Tool. https://www.msci.com/data-and-analytics/sustainability-solutions/esg-ratings-climate-search-tool (Date of access: July 17, 2025)

IMD. (2025, June). Twin transformation: How to stop treating AI and sustainability as separate challenges. https://www.imd.org/ibyimd/artificial-intelligence/twin-transformation-how-to-stop-treating-ai-and-sustainability-as-separate-challenges/ (Date of access: June 25, 2025)