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

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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)

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.

Suggested Citation

  • Naiara Uriarte-Gallastegi & Germán Arana-Landín & Beñat Landeta-Manzano & Iker Laskurain-Iturbe, 2024. "The Role of AI in Improving Environmental Sustainability: A Focus on Energy Management," Energies, MDPI, vol. 17(3), pages 1-15, January.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:3:p:649-:d:1329235
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    References listed on IDEAS

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    1. Qing Yin & Delu Wang & Yadong Wang, 2023. "Serial Mediation Model Linking Returnee Entrepreneurship Education and Green Returnee Entrepreneurial Behavior: An Analysis of Environmental Improvement," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    2. Liu, Liang & Yang, Kun & Fujii, Hidemichi & Liu, Jun, 2021. "Artificial intelligence and energy intensity in China’s industrial sector: Effect and transmission channel," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 276-293.
    3. Will McDowall & Yong Geng & Beijia Huang & Eva Barteková & Raimund Bleischwitz & Serdar Türkeli & René Kemp & Teresa Doménech, 2017. "Circular Economy Policies in China and Europe," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 651-661, June.
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