This chapter underscores that AI and sustainability are so intrinsically linked that boards must address them together rather than in isolation. It illustrates how the disruptive forces of AI can redefine business models while driving sustainability initiatives that create strategic moats through proprietary data and unique supply-chain innovations. The chapter first examines the negative impacts of AI on sustainability, detailing environmental challenges such as excessive energy consumption, electronic-waste (e-waste), and inequitable data center siting, as well as ethical risks like algorithmic bias against nature, opacity in sustainability reporting, and the amplification of misinformation. It also considers social risks, including workforce technostress and potential job displacement. Conversely, the chapter highlights the positive potential of AI to accelerate the green transition. It explores how AI can optimize complex systems, drive clean-tech innovation, inspire behavioral change, and improve climate and policy modelling. Additionally, it discusses AI’s role in enhancing employee well-being and fostering a healthier work environment. Overall, the chapter calls on boards to balance these risks and opportunities strategically, ensuring that AI not only mitigates environmental and social challenges but also acts as a catalyst for sustainable value creation for both business and the planet.

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Oversight of AI’S Dual Impact on Sustainability

  • Fernanda Torre,
  • Liselotte Hägertz Engstam,
  • Robin Teigland

摘要

This chapter underscores that AI and sustainability are so intrinsically linked that boards must address them together rather than in isolation. It illustrates how the disruptive forces of AI can redefine business models while driving sustainability initiatives that create strategic moats through proprietary data and unique supply-chain innovations. The chapter first examines the negative impacts of AI on sustainability, detailing environmental challenges such as excessive energy consumption, electronic-waste (e-waste), and inequitable data center siting, as well as ethical risks like algorithmic bias against nature, opacity in sustainability reporting, and the amplification of misinformation. It also considers social risks, including workforce technostress and potential job displacement. Conversely, the chapter highlights the positive potential of AI to accelerate the green transition. It explores how AI can optimize complex systems, drive clean-tech innovation, inspire behavioral change, and improve climate and policy modelling. Additionally, it discusses AI’s role in enhancing employee well-being and fostering a healthier work environment. Overall, the chapter calls on boards to balance these risks and opportunities strategically, ensuring that AI not only mitigates environmental and social challenges but also acts as a catalyst for sustainable value creation for both business and the planet.