ARTIFICIAL INTELLIGENCE AND THE ENERGY TRANSITION: ECONOMIC AND SOCIAL TRANSFORMATIONS IN THE NEW PARADIGM OF INNOVATION AND SUSTAINABILITY

Răzvan Serbu
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Răzvan Serbu: Lucian Blaga University of Sibiu

Revista Economica, 2025, vol. 77, issue 2, 96-104

Abstract: The merging of the digital revolution and the importance of the energy transition presents a complex challenge to global economic and social structures. This article provides an integrated analysis of the interaction between Artificial Intelligence (AI) and the energy sector, examining both life changing opportunities and the critical sustainability and equity risks. AI is a powerful catalyst for innovation, offering tools for optimizing renewable energy systems, enhancing grid efficiency, and accelerating materials science research, but its rapid expansion introduces serious pressures.Our analysis, based on a critical synthesis of specialist literature and international data, highlights a profound and growing energy dilemma. The proliferation of large AI models and data centers is projected to drive an extensive increase in global electricity demand, with data center consumption. The study also explains significant socio-economic implications. AI intensifies labor market dynamics, necessitating widespread reskilling and adaptation to prevent technological unemployment. The concentration of AI s economic benefits among a few technology firms and countries risks amplifying existing social and territorial inequalities. We conclude that realizing the full potential of AI in the energy transition, achieving both efficiency gains and sustainability, is likely upon proactive public policies, regulatory frameworks promoting energy transparency, and inclusive educational strategies designed to manage the coming economic and social transformations.

Keywords: Artificial Intelligence; Energy Efficiency; Innovation; Sustainability (search for similar items in EconPapers)
JEL-codes: O31 Q55 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:blg:reveco:v:77:y:2025:i:2:p:96-104

DOI: 10.56043/reveco-2025-0016

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