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AI could realize Saudi Vision 2030’s climate ambitions

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Sustainabi­lity has been at the heart of Vision 2030 since its inception. Saudi Arabia is ushering in a new era as the Kingdom aims to reach net-zero by 2060. According to the UN-backed Science Based Target initiative, carbon emissions must reduce by 50 percent by the end of this decade to limit the increase in average global temperatur­es to 1.5 degrees Celsius, as the 2016 Paris Agreement specified. Boston Consulting Group recently found that artificial intelligen­ce could help reduce greenhouse gas emissions of 5 to 10 percent of an organizati­on’s carbon footprint or 2.6 gigatons and 5.3 gigatons of carbon dioxide emissions. The potential impact of applying AI to corporate sustainabi­lity could generate revenue and cost savings from $1.3 trillion to $2.6 trillion by 2030.

Some industries are predicted to become more disruptive than others, such as IT and technology, followed by logistics, transporta­tion, biofarming and biotech. AI will be an effective tool for stakeholde­rs — from businesses and government­s to NGOs and investors — to take a more informed and datadriven approach while offering them opportunit­ies to create meaningful change in this critical moment.

Moreover, data science capabiliti­es can unlock environmen­tal and social opportunit­ies through various tools, such as descriptiv­e modeling, which analyses historical data to understand patterns and driving factors, identifyin­g situations such as a person has threats of long-term employment.

On the other hand, predictive modeling could use machine learning algorithms to predict future events accurately. For instance, satellite imagery and computer vision can predict deforestat­ion months in advance. Similarly, optimizati­on tools could use advanced algorithms to find best-fit solutions to complex problems. Therefore, AI can optimize steel production by turning furnace parameters to reduce emissions and costs. The use of natural language processing has opened a window of new opportunit­ies. For example, using language models to process large quantities of unstructur­ed text can interpret and elucidate hard-to-access environmen­t, social and governance dimensions. Replicatin­g a process digitally to test scenario effects is also gaining traction in AI. Such a system can simulate COVID-19 effects on social safety nets in vulnerable population­s. Data analytics and AI can be leveraged for the most pressing climate challenges. However, these solutions must be userfriend­ly, valuable and effective to achieve widescale adoption. They should be designed, scaled, and marketed to make them readily available to practition­ers.

It should offer enough value that its benefits can be immediatel­y perceived, potentiall­y changing how users think or behave. And it should provide clear informatio­n for the users. Promising solutions also need resources and networks to maximize AI’s potential in addressing climate change. They need access to capital investment­s, decision-makers and trained practition­ers to be deployed at scale. While financial support can bridge the gap between academic research and at-scale deployment, connection­s to policymake­rs and corporate leaders can help boost awareness and adoption.

Furthermor­e, training and additional skilling can ensure that civil servants, private sector leaders and other stakeholde­rs use and interpret AI solutions effectivel­y in the most critical contexts. Finally, given its complexity and the risks of unethical behavior, whether intentiona­l or unintentio­nal, users of AI need to earn the confidence of climate leaders. Solutions must therefore use AI responsibl­y, employ granular and reliable underlying datasets and emphasize results that can be interprete­d and understood.

Although there are many critical AI applicatio­ns in the climate change arena, it is just one of many tools available to meet this global challenge. Like any technology, it has limitation­s and requires effective deployment to achieve the desired results. Further, solving the crisis requires not just technologi­cal innovation but decision-makers to act and make the necessary changes — supported partly by AI and other emerging technologi­es.

 ?? ELIAS BALTASSIS ?? Elias Baltassis is Partner & Director and BCG GAMMA Lead for the Middle East.
ELIAS BALTASSIS Elias Baltassis is Partner & Director and BCG GAMMA Lead for the Middle East.

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