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The AI-decarbonisation paradox

Mika Kastenholz
Mika Kastenholz • 5 min read
The AI-decarbonisation paradox
The potential of AI in sustainable investing is a promising but complex paradox. Photo: Pexels
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Artificial intelligence (AI) holds immense potential to drive decarbonisation, offering revolutionary benefits like optimised energy consumption, accelerated renewable energy deployment and enhanced transport systems.

However, this potential is not without its challenges, chiefly the substantial energy and water consumption of AI operations.

This paradox places sustainable investors in a difficult position, as they must balance the push for AI-driven transformation with the risk of increased carbon emissions if AI systems are not sustainably powered.

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