Environmental and social governance issues in AI-era electric power management and information disclosure

Thirukumaran Subramani, Priyanka Mathur, Sohail Imran Khan, P. Suganya, Sukhwinder Sharma and Sunita Sachin Dhotre

International Journal of Critical Infrastructures, 2025, vol. 21, issue 5, 470-494

Abstract: Artificial intelligence (AI) has dramatically transformed the electric power management sector, ushering in higher levels of efficiency, sustainability, and intelligent energy distribution. This shift has enabled more optimised consumption patterns and significantly reduced waste. However, AI complicates power management, particularly environmental and social governance (ESG). This study analyses the pros and cons of AI-powered electric power sector ESG issues. While AI improves power management through predictive maintenance and demand-response optimisation, it also presents transparency issues related to its decision-making algorithms, complicating ESG adherence. To address these concerns, we introduce a novel architectural framework designed to enhance transparency and directly confront ESG challenges associated with AI in power management. Our thorough trials validate the concept, presenting a potential strategy to harmonising technical advancement with ESG principles. The findings demonstrate the need for a balanced approach, embracing AI's potential to transform power management and ESG challenges. A sustainable and equitable future for power management technology requires this balance. Our research shows the importance of proactive ESG engagement in the AI era and the framework's ability to create a more open, accountable, and sustainable power management paradigm.

Keywords: artificial intelligence; electric power management; environmental and social governance; ESG; transparency and information disclosure; technological advancements; architectural framework; efficiency and challenges. (search for similar items in EconPapers)
Date: 2025
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