The Algorithmic Alchemist: Transmuting Business Models for a Net-Zero Future

Richard Fedorko () and Subhra R. Mondal ()
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Richard Fedorko: University of Presov
Subhra R. Mondal: Duy Tan University

A chapter in Generative AI for a Net-Zero Economy, 2025, pp 37-55 from Springer

Abstract: Abstract In the face of the climate crisis, urgent reinvention of business models is needed so that profitability and planetary health are in alignment. This chapter examines how artificial intelligence (AI) can serve catalytically in this transition, as an “algorithmic alchemist” capable of transmogrifying linear, extractive practices into regenerative, net-zero systems. Focusing on interdisciplinary analysis and specific case studies, it explores the role of AI in frontiers of technology that underpin circular economies, product-as-a-service (PaaS) frameworks, and systematic innovations to decouple economic growth from resource depletion. But the networked, AI-driven models—predictive maintenance services; novel logistics management services; dynamic pricing services—that could exponentially reduce waste and emissions from our systems will not come without complications and challenges to implement. Hollowing out of governments by giant corporations, massive energy requirements for AI training, and ethical risks from issues such as algorithmic bias and inequitable technology distribution call for balanced governance. It presents a gradual path for organizations toward sustainable AI adoption, emphasizing agility, stakeholder collaboration, and ethical governance. The debriefing from economists and industry leaders indicates the complex interplay between technological viability and regulatory coherence, as well as sociocultural readiness. Therefore, cross-sector collaboration and value reconfiguration are the keys to bridging the gap—achieving alignment where ecological resilience takes priority over short-term gain.

Keywords: Artificial intelligence; Sustainable business models; Circular economy; Net-Zero transition; Algorithmic ethics; Servitization (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-8015-3_3

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DOI: 10.1007/978-981-96-8015-3_3

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