Microsoft examines ESG challenges to artificial intelligence

It seems that the growth of artificial intelligence, especially in industries and sectors that use its capabilities to enhance efficiency and maximum productivity, is impaired. With the expansion of artificial intelligence in various sectors of large companies and government agencies, huge investments have been made in this area. This has led to the formation of specific teams to exploit its potential.

However, despite significant opportunities and increasing demand for artificial intelligence organizational applications, this technology also creates challenges, especially in the field of sustainability and its potential impact on climate change.

Intense energy demand for artificial intelligence technologies can endanger corporate environmental, social, and governance strategies (ESG) if improper management. Corporate board of directors have an important task to balance growth alongside stability so that they can properly manage this complex atmosphere.

Microsoft is one of the technology giants that softens the energy demand of artificial intelligence because the data centers industry is growing rapidly. As one of the leading cloud services providers, the company has set ambitious goals to be negative by 2030.

Soroush Kheradmand, the World Sustainable President in Schneider Electric, has talked about how Microsoft is managing artificial intelligence challenges with Sustainable Advisor Mary Farsia. “With the speed of progress and the wave of investments in artificial intelligence, businesses see both opportunities and risks,” he says.

Manage the complexity of ESG in artificial intelligence

Microsoft is recognized as ESG standards and sets ambitious goals such as carbon negative, complete waste removal, increased water consumption by 2030, as well as the protection of more land consumed by 2025.

However, the rapid growth of the company’s artificial intelligence operations, which include high energy and water consumption, can challenge some of these commitments.

Microsoft, of course, is actively managing these potential risks and opportunities, ensuring that the governance structures at the board and executive operations are strong enough to manage these challenges effectively.

Microsoft is also committed to clarifying the effects of artificial intelligence on its sustainable goals to maintain a leading position in the ESG field. Soroush and Mary recommend that the specialized knowledge related to artificial intelligence be integrated at the board. This integration should be done both through the appointment of new members and by creating counseling situations, especially among those who have a background in artificial intelligence and technology ethics.

This makes the strategic decision -making process based on a deeper understanding of the unique challenges and opportunities of artificial intelligence.

ESG strategic management and financial performance

One of Microsoft’s key strategies to move successful in the next phase of artificial intelligence growth is the strategic management of the investment basket. As the growth of artificial intelligence will continue, Microsoft believes that close alignment with ESG goals requires a comprehensive approach that includes board members, executives, staff and other stakeholders.

All of these people should be trained in the effects of ESG artificial intelligence and its measuring and reporting methods. Soroush and Mary emphasize the need to match key performance indicators (KPIs) and Microsoft frameworks to guide investment decisions within the company. These frameworks and indicators must be regularly reviewed and modified to remain effective and relevant.

In order to ensure that the Microsoft investment portfolio evolves in line with ESG goals, these sustainable goals must be completely integrated into the existing processes of the company. This integration helps to make quick and accurate decision -making by executives and senior executives and allows them to rapidly respond to the rapid changes in artificial intelligence.

Mary confirms the value of these joint conversations and says: “I thank this opportunity to work with Soroush in this important discussion on the intersection of artificial intelligence and sustainability in the Board of Directors. “This article brings together our common knowledge of government, ESG, climate change and artificial intelligence to provide useful approaches to improving the board’s supervision in these vital areas.”