The Role of AI in Improving Environmental Sustainability: A Focus on Energy Management

Naiara Uriarte-Gallastegi, Germán Arana-Landín (), Beñat Landeta-Manzano and Iker Laskurain-Iturbe
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Naiara Uriarte-Gallastegi: Faculty of Engineering from Bilbao, Department of Business Management, University of the Basque Country, Ingeniero Torres Quevedo Square, 1, 48013 Bilbao, Spain
Germán Arana-Landín: Faculty of Engineering from Gipuzkoa, Department of Business Management, University of the Basque Country, Europa Square 1, 20018 San Sebastian, Spain
Beñat Landeta-Manzano: Faculty of Engineering from Bilbao, Department of Business Management, University of the Basque Country, Ingeniero Torres Quevedo Square, 1, 48013 Bilbao, Spain
Iker Laskurain-Iturbe: Faculty of Engineering from Gipuzkoa, Department of Business Management, University of the Basque Country, Europa Square 1, 20018 San Sebastian, Spain

Energies, 2024, vol. 17, issue 3, 1-15

Abstract: This research addresses the increasing importance of understanding how Artificial Intelligence can facilitate the transition of companies to a Circular Economy model. This study focuses on energy management, examining its impact on efficiency and emissions across a multi-case analysis of 18 projects in diverse sectors. The findings indicate that Artificial Intelligence positively influences both variables, with variations across applications and sectors. Notably, Artificial Intelligence significantly enhances energy efficiency in four out of six sectors, achieving over 5% improvement in half of the projects. Regarding emissions, positive effects are observed in 15 out of 18 projects, resulting in over 5% reductions in seven cases. Artificial Intelligence plays a pivotal role in emissions reduction in the Design and Energy sectors, with some projects achieving over 20% reductions. Additionally, this study explores how improved energy efficiency positively affects strategic business variables, such as cost, quality, and delivery time. The impact on emissions contributes to reducing occupational risks, particularly those associated with chemical and biological agents. Although managers are satisfied, measures need to be taken to overcome the lack of employee acceptance. These findings are of great interest to the stakeholders involved in the integration of Artificial Intelligence into companies.

Keywords: Artificial Intelligence; Circular Economy; Industry 4.0; energy management; energy efficiency; emissions; non-energy benefits (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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