Why India Inc. must embrace AI in its quest for a net zero future

In the last few decades, people across the globe are starting to feel the effects of climate change. As the world recognises this imminent threat, India has reinforced its commitment to an energy transition towards decarbonisation, to achieve ‘net zero’ emissions by 2070.

However, the journey towards eliminating CO2 emissions and achieving near total decarbonisation demands a fundamental change in how the country’s economy works. It will require the Government, people, businesses, and corporations across sectors to come together and make concerted efforts towards sustainability.

Technology, especially AI, can be a valuable tool to achieve these sustainability goals. AI can help companies accurately track their carbon footprint, allowing them to make more informed management decisions. It also allows businesses to be more efficient in the use of resources, and in the way they build out their supply chains.

For example, AI-powered platforms enable businesses to monitor, manage, and reduce their emissions by offering real-time data and predictive insights. These tools analyze emissions data, enabling companies to identify inefficiencies in their operations and take timely action to optimize resource use and minimize waste. By automating carbon tracking and enhancing energy efficiency, AI helps businesses make data-driven decisions that align with their sustainability targets.

Navigating Sustainability in India: Progress and Challenges

The Indian government has launched several initiatives to address climate change, including the National Action Plan on Climate Change, which outlines strategies, such as using more solar energy for sustainable development and economic growth. The National Clean Air Programme has set targets for improving air quality and implementing pollution control. To ensure the success of these measures, it is essential for the government to secure the support of corporates.

Many Indian corporations have taken up the government’s clarion call, setting corporate sustainability goals and investing in renewable energy. Their increasing commitment to achieving net zero has seen them adopt more sustainable practices to make their operations carbon-neutral.

This involves reducing their carbon footprints, particularly by transitioning their energy sources from fossil fuels to renewable alternatives. Corporations must use their resources more efficiently as well as monitor and manage their waste industrial output in ways that do not harm the environment. This is where AI comes in.

AI as the catalyst

There are several ways in which AI acts as a catalyst for change and moves closer to achieving broader sustainability objectives. These include:

Tracking and analytics to facilitate better decision-making

The integration of Internet of Things (IoT) and AI facilitate real time data collection and generating insights which businesses can leverage to track their carbon footprint more accurately. The collected data can be analysed by machine learning-based software (AI ML) pinpointing important factors and providing a clearer picture of the situation. This helps the leadership with more effective decision-making, improving sustainability efforts by optimising resource use and thereby reducing emissions.

Optimising logistics and inventory management

McKinsey’s research found that successfully executed Environmental, Social, and Governance (ESG) strategies can reduce operational expenses significantly, improving operating profits by as much as 60%. AI can play an important part in this by optimising logistics and inventory management, making the supply chains more efficient. It can also help predict equipment failures, allowing industries to reduce downtime. This saves resources and material waste, further lowering costs.

Improving performance and delivering greater efficiency

AI can be used to build smart power grids, enhancing efficiency, by allowing for accurate forecasting, monitoring, and optimisation of energy consumption. This will lead to more effective and sustainable energy management.

It can even increase the efficiency of renewable energy generation by enabling performance monitoring and predictive maintenance for solar and wind generation.
To optimally implement these new technologies, companies must equip their workforce with the skills required to use them. Salesforce’s Generative AI Snapshot Research Series found that 62% of workers and 70% of business leaders say employees do not have the skills to effectively and safely use generative AI.

AI for a Greener India

AI’s potential to drive India Inc. toward its net zero goals is immense. From improving resource efficiency to optimising energy consumption, AI can catalyze a fundamental shift in how businesses approach sustainability.

For India to meet its 2070 net zero target, widespread AI adoption across industries will be essential. Corporations that embrace AI not only stand to reduce their carbon footprints but also position themselves as leaders in the global shift toward a greener, more sustainable economy.

By leveraging AI, India Inc. has the opportunity to lead the world in achieving a balance between growth and sustainability, paving the way for a future where economic prosperity and environmental responsibility go hand in hand.