IBM Sees Sustainability as an AI Driver

IBM Sees Sustainability as an AI Driver

Nine out of ten German managers expect the use of AI to contribute to their sustainability goals.

In the IBM study, 89 per cent of German managers expressed their intention to invest more in IT over the next twelve months in order to drive forward the topic of sustainability. This is just above the global average (88 per cent). More than half of those surveyed see corresponding technology investments as an opportunity for growth.

For the German decision-makers surveyed, energy costs (58 per cent) are the most important reason for investing in IT and associated services for sustainability. This is immediately followed by the goal of increasing the company’s resilience (54 per cent).

The study was conducted by market research company Morning Consult. Interviews were conducted with 2,790 managers from 15 industries and nine countries, including Germany, between April and May 2024.

Unutilised AI potential

The interviewees were almost universally positive about the sustainability potential of AI. 91 per cent of German managers believe that artificial intelligence will have a positive impact on achieving their sustainability goals. However, the study also found that 59 percent of German organizations are not yet actively using AI for sustainability.

In order to utilise the potential of AI responsibly, companies must also consider the energy consumption that the technology entails, IBM continues. To reduce energy consumption – without sacrificing the use of AI – executives are turning to various practices, such as optimizing data processing locations, investing in energy-efficient processors and leveraging open source collaborations.

The global executives surveyed also stated that it is difficult to attract the right AI talent. In view of the current shortage of skilled labor, this is one of the three biggest challenges for managers worldwide in the area of sustainability. In Germany, the study puts energy consumption and the availability of specialized personnel in joint first place when it comes to the biggest challenges in the area of sustainability management. According to the study, sustainability reporting and further compliance requirements follow.

Difficulties with measurement

While organizations are increasingly embedding sustainable practices and technologies into their operational processes, the study finds that the following key question remains unanswered: How do you measure sustainability? The global executives surveyed prioritized resource efficiency in particular, citing renewable energy consumption, total energy consumption and recycling as their top three metrics for sustainability. IBM itself collects similar metrics for these areas, based on megawatt hours of energy consumed, the percentage of electricity generated globally from renewable energy sources and the percentage of waste sent to landfill or incinerated by weight.

The results of the sustainability survey also show that measuring sustainability KPIs is one of the three biggest current challenges facing respondents. 60 per cent of German executives surveyed stated that their data for measuring sustainability KPIs is not yet mature, which can make reporting even more of a challenge. This is a clear discrepancy to the international average, in which every second company can fall back on a mature measurement of sustainability.

More than half of respondents globally agree that reporting and compliance is a challenge for their organization. Yet only some (29 per cent) of respondents cited improving the accuracy of reporting as one of the top three benefits they hope to see from adopting new technology.