As the world faces increasing environmental challenges, cutting-edge software and AI are set to become crucial drivers of sustainability across industries. Software-driven innovation is vital to transforming our current systems to create a climate-secure future. While 2023 focused on promoting behavioral changes to inspire collective progress, 2024 demands a more coordinated effort to adopt sustainable practices. This year, community-driven initiatives and activities themed around sustainability will be at the forefront.
Here are five predictions on how advancements in software and AI will accelerate sustainability efforts across various sectors over the next five years:
Organizations Will Adopt Circular Economy Business Models
To establish a global circular economy that minimizes waste, companies must rethink their business models to maximize resource efficiency, develop recyclable products, and repurpose waste into new offerings. A vital component of this shift is the creation of digital business ecosystems that enable effective decision-making and action.
One of the significant challenges of transitioning to a circular economy is the collection and sharing of data about a product throughout its entire lifecycle. Digital Product Passports (DPPs) address this need by providing a transparent record of a product’s sustainability, environmental, and recyclability attributes. By enabling traceability through software, DPPs help businesses enhance product management across the supply chain and drive cost savings, fostering a more sustainable economy.
AI Will Help Manage Natural Resources
AI is becoming increasingly important for addressing various environmental sustainability issues, including biodiversity, energy, transportation, and agroecosystem management. According to a Sustainable Futures report, AI offers valuable insights and increases automation in the agriculture sector to improve environmental stewardship. It can detect diseases and potential infestations before they threaten crops or livestock, ensuring more sustainable farming practices.
Beyond individual farm outputs, the data generated by AI can provide insights that positively influence policy decisions at local or national levels. AI is also central to efforts to reduce waste and enhance the cost-effectiveness and sustainability of water management in agriculture, further supporting environmental goals.
AI Will Increase the Viability of Renewable Energy
McKinsey estimates that by 2026, global renewable electricity capacity will increase by more than 80% compared to 2020 levels. The annual Invesco Global Sovereign Asset Management Study found that 71% of Middle Eastern Sovereign Wealth Funds (SWFs) prioritize investments in infrastructure, particularly renewable energy and transmission segments.
The integration of millions of devices uploading and downloading electricity is transforming the way electric grids function. Automation and data analytics can help manage decentralized energy sources, direct excess electricity, identify potential grid weaknesses before they become critical issues, and enable utilities to redirect power in real time to where it is needed most. To support this shift, legacy utility giants will need to modernize their operating models and invest in cloud-based IT infrastructures that allow efficient data management and analysis across entire organizations.
The Shift to Software-Defined EVs
With the goal of achieving net-zero emissions by 2050, the decarbonization of transport has become increasingly important. During COP28, Dubai’s Roads and Transport Authority (RTA) introduced the “Net-Zero Emissions Public Transportation in Dubai 2050” strategy, making it the first Middle Eastern agency to develop a long-term plan for achieving net-zero emissions in public transport.
A significant number of the world’s largest automakers have committed to transitioning, either partially or completely, to electric vehicle (EV) manufacturing. These EVs will become software-defined vehicles (SDVs), equipped with automated capabilities to manage the car more efficiently while prioritizing environmental considerations. Features like smart routing and energy optimization will help address issues related to charging capacity and range, making SDVs a crucial element in sustainable transport.
Finance Systems Will Be Re-engineered to Consume Less Energy
Banks and financial services organizations are prioritizing the transition to more environmentally sustainable operations. The focus is on creating more sustainable software, using more efficient algorithms, and improving data processing techniques. The global green finance market has grown significantly from $5.2 billion in 2012 to over $540 billion in 2021. In the Middle East, the UAE Banks Federation announced an initiative to mobilize over Dh1 trillion in sustainable finance by 2030. The financial sector is also taking steps to reduce its energy consumption by enhancing efficiencies in data centers.
Today, organizations must incorporate sustainability into their system architectures and templates, make it a non-functional requirement in bids, and establish sustainability targets in service level agreements. As architects, engineers, project managers, and software delivery teams lead this transformation, they will seamlessly transition to using code to support sustainability while maintaining and even enhancing competitiveness and profitability.
Looking ahead, sustainability will become the new standard, and software will be at the core of this transformation, helping us create a climate-secure and competitive future.