Artificial intelligence (AI), traditionally linked to enhancing productivity and automation, is now emerging as a vital strategic partner for companies striving to achieve their sustainability, decarbonization, and climate-related objectives. Industries are under growing pressure to cut emissions, minimize waste, and enhance resource efficiency, organizations both in India and elsewhere are becoming more adopting AI as a fundamental driver of greener and smarter operations. A growing body of industry reports, expert insights, and corporate initiatives underscores that AI is being embraced not just for profit but as a crucial enabler of sustainable growth and long-term climate commitments.
The relationship between AI-driven efficiency improvements and sustainability outcomes is becoming increasingly evident across various sectors. Innovations that enhance machine performance, streamline logistics, or minimize equipment downtime naturally lead to reduced energy consumption and waste, yielding direct environmental benefits.
Preeti Menon, PDES Chief Delivery Officer and Business Unit at Happiest Minds, notes that AI-enabled platforms now provide organizations with real-time insights into energy use, emissions, and overall resource management. She highlighted that technology is increasingly seen as reason for growth and a measure of corporate responsibility.
The manufacturing sector, one of India’s most resource-intensive industries, is experiencing this transformation on a large scale. By 2024, nearly 65% of Indian manufacturing firms are expected to have integrated AI into their operations, a significant increase from 45% in 2022. Through AI and IoT-driven predictive
maintenance, manufacturers are cutting unplanned downtime by up to 30%, decreasing energy waste and extending the life of essential machinery. Additionally, AI based visual inspection tools are enhancing defect detection rates by approximately 40%, leading to less material waste and rework.
Menon also pointed out that generative AI is expediting design processes, allowing for quicker prototyping with fewer resources, thus minimizing the environmental impact during the early phases of product development
Leading global technology firms are now integrating sustainability concepts into their AI-powered solutions. During a discussion with Nisheeth Srivastava, CTO Officer – India at Capgemini, explained how the company’s ESG-focused offerings, including its Sustainable AI toolkit and the RAISE (Reliable AI Solution Engineering) framework, assist organisations in automating carbon reporting, enhancing transparency, and generating predictive insights aligned with net-zero strategies.
One significant development in this field is the use of digital twins—virtual representations of factories, energy grids, supply chains, or public infrastructure. These digital models enable organisations to simulate various scenarios, optimise processes, and reduce the costs connected to trial and error in the actual world. The results include decreased waste, smarter energy utilisation, and more resilient practices aligned with a circular economy.
This integration of AI, cloud technologies, and ESG frameworks signifies a broader shift in enterprise priorities: AI is no longer viewed as a standalone innovation investment but as a fundamental element of sustainability strategies.
The message for organizations is clear: AI is increasingly crucial for change driven by sustainability. According to Ramesh Jampula, Vice President, IT, India and APJC Regional CIO at Dell Technologies, early investments—whether in digital twins, ESG intelligence platforms, or predictive technologies—create compounding long-term benefit.
But only if businesses and legislators incorporate ethics, sustainability principles, and transparent governance at every level—from data infrastructure and model creation to deployment and climate accountability—will the full potential of AI in sustainability be realized. India’s sustainability path will require ethical, energy-conscious, and future
ready AI in addition to cutting-edge technology.