[Public Voices]AI Clearly Offers Solutions to the Climate Crisis

AI: The Key to Energy Transition in the Climate Crisis
Amid Criticism as an 'Energy and Water Black Hole,'
AI Drives Efficiency and Sustainability
Accelerating the Era of 'Electricity 4.0'

Frederic Godemel, Vice President of Global Energy Management Division at Schneider Electric

The world is currently facing a climate crisis. Global energy demand continues to rise, which is in direct conflict with the worldwide imperative to reduce carbon emissions. What we urgently need now is an "energy transition"?the ability to manage and consume energy in a sustainable way.

Against this backdrop, the emergence of artificial intelligence (AI) is being recognized not just as a technological innovation, but as a crucial key to addressing the climate crisis. Many people fear AI simply because they do not fully understand it. According to a report released last year by the global research firm Ipsos, half of the respondents expressed anxiety about AI, yet only half actually knew where AI technology is being applied.

In particular, various media outlets sometimes depict AI as an "energy black hole" that consumes massive amounts of electricity and water. For example, studies claiming that a 100-word email generated by an AI chatbot consumes over 500ml of water, or that AI-powered searches use more than ten times the energy of regular searches, have reinforced such perceptions.

However, these views overlook the progressive aspect of AI in improving efficiency. While AI does require more resources than other technologies, it is also driving greater energy efficiency through innovation. In fact, last year, NVIDIA introduced the Blackwell Superchip for AI, which uses up to 25 times less cost and energy compared to previous models.

More importantly, AI plays a vital role in sustainability by reducing energy and water consumption. When AI is integrated into energy management software, companies can monitor energy flows in real time, minimize waste, and reduce both carbon emissions and costs. In this sense, AI is closer to being a solution for sustainability rather than the cause of the problem.

Currently, about 80% of global carbon emissions come from the production and consumption of energy. Therefore, decarbonizing "energy" is essential to achieving a net zero society.

We are now entering the era of "Electricity 4.0." This period represents a new energy paradigm characterized by both electrification and digitalization. Electrification refers to the shift from fossil fuels to renewable energy, while digitalization makes energy flows visible and automated, providing greater efficiency and flexibility.

AI acts as the "engine" that accelerates this transformation. By rapidly analyzing complex data and providing real-time insights, AI enables people to make faster and more accurate decisions. As a result, both industrial sites and households can save and use energy more intelligently and efficiently.

Accurate data is crucial when developing strategies for energy decarbonization. AI helps by analyzing vast amounts of energy data, allowing for precise monitoring of consumption and emissions, and is also being used to measure and report corporate carbon emissions.

Operating microgrids using AI-based platforms can maximize energy efficiency and generate hundreds of thousands of kWh of electricity annually, achieving reductions in greenhouse gas emissions equivalent to taking thousands of vehicles off the road. As the importance of carbon neutrality and energy efficiency grows, the need for such technology is also increasing.

AI should now be redefined not merely as a tool for improving productivity, but as a practical instrument for solving the environmental crises we face. In the challenges of energy optimization, carbon emission reduction, and the expansion of renewable energy, AI is clearly providing answers. This is not the time to fear technology, but to consider how we can harness it to create social value. If we understand and utilize AI properly, a sustainable future can become a reality, not just a dream.

Frederic Godemel, Vice President of Global Energy Management Division at Schneider Electric