Artifical intelligence and sustainability

: technology as an enabler and challenges. The examples of Google and Microsoft

Abstract

This Thesis examines the role of Artificial Intelligence (AI) in advancing corporate sustainability within the technology industry and focuses on studies of Microsoft and Google. Growing environmental challenges and stakeholder pressure prompts tech giants to integrate AI into their corporate sustainability strategies. While AI holds potential for positive environmental impact, its deployment also presents significant challenges which includes energy consumption and ethical concerns. A mixed-methods approach was adopted, to encompass literature review, case study analysis and expert interviews. The study investigates the alignment of AI initiatives with sustainability goals, challenges of the sustainable integration of AI and best practices in the technology sector. The analysis reveals that both Microsoft and Google leverage AI to enhance energy efficiency, reduce carbon emissions, reduce water usage, and advance circular economy practices. Their initiatives contribute to key Sustainable Development Goals (SDGs), such as SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy) and SDG 12 (Responsible Consumption and Production). However, challenges persist, which includes high energy demands of data centers and algorithmic transparency. The thesis identifies best practices for AI-driven sustainability, such as AI-powered innovative systems and the use of renewable energy in data center operations. It also highlights the need for balancing technological advancements with ethical and environmental responsibilities. The thesis underscores the dual role of AI as a solution and a challenge in corporate sustainability and offers actionable insights for technology companies and policymakers who strive for a sustainable future.

Date of Award	3 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)