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UNIDO highlights the environmental costs of AI at French AI Action Summit side event 

Paris, February 12, 2024 – The United Nations Industrial Development Organization (UNIDO) reinforced its commitment to sustainable digital transformation at the IEEE/OECD French AI Action Summit Side Event, titled “The Hidden Costs of AI: Unpacking Its Energy and Water Footprint.” The event, co-hosted by the Organisation for Economic Co-operation and Development (OECD) and Institute of Electrical and Electronics Engineers (IEEE), brought together global experts to address the escalating environmental impact of AI, particularly the energy-intensive nature of inference processes in industrial AI applications. 

Representing UNIDO, Ana Paula Nishio de Sousa, Chief of Digital Transformation and AI, highlighted the growing environmental footprint of AI models as they transition from research to real-world deployment. Unlike AI training, which is a one-time energy expense, inference—where AI models generate real-time outputs—scales with user demand, embedding itself in search engines, voice assistants, recommendation systems, and industrial automation. This shift is driving an urgent need for sustainability-focused AI innovations to ensure energy efficiency in industrial and manufacturing applications. 

The discussions aim to support and inform related norms and standards, in particular, IEEE P7100: Environmental Impacts of Artificial Intelligence   

Balancing AI Innovation and Sustainability in Industry 

UNIDO’s participation at the side event aligns with its mission to promote inclusive and sustainable industrial development (ISID) by integrating AI responsibly across global manufacturing ecosystems. Nishio de Sousa emphasized that AI-driven industrialization must be both innovative and environmentally responsible, particularly for developing economies that may lack access to energy-efficient AI infrastructure. 

“AI has the potential to revolutionize industry, but its unchecked energy consumption could exacerbate global sustainability challenges,” Nishio de Sousa stated. “At UNIDO, we are working with governments, industry leaders, and technology developers to ensure that AI-driven industrial transformations prioritize energy efficiency, resource optimization, and sustainability.” 

Key Discussions: AI’s Energy Efficiency in Industry 

During the panel discussion, UNIDO addressed several strategic pathways to mitigate the environmental impact of AI in industrial applications: 

  • Optimizing AI for Industrial Use – Encouraging the adoption of smaller, specialized models (SLMs) instead of relying solely on large-scale AI models to improve efficiency while maintaining functionality. 
  • Hardware and Compute Innovation – Supporting energy-efficient processors and edge computing solutions that minimize energy demands in manufacturing and industrial automation. 
  • Regulatory and Policy Frameworks – Working with international standard-setting bodies to integrate sustainability principles into AI governance, industrial policy, and regulatory guidelines. 
  • Collaborative Industry Practices – Promoting best practices for AI sustainability through multi-stakeholder partnerships, ensuring that industrial AI applications adhere to environmental standards. 

“AI should be a force for sustainable development, not an unchecked driver of resource depletion,” Nishio de Sousa concluded. “Through UNIDO’s work in digital transformation and AI governance, we are creating frameworks that enable industries to harness AI’s power while minimizing its environmental impact.” 

AIM Green: AIM Global’s Flagship Initiative for Sustainable AI in Industry 

The UNIDO AI for Industry and Manufacturing Global Alliance (AIM Global) is a key platform to discuss and address these challenges.  

As part of its commitment to sustainable AI, UNIDO has launched AIM Green, a dedicated initiative within UNIDO AIM Global, focused on greening AI in industrial applications. AIM Green addresses AI’s environmental impact by promoting energy-efficient AI solutions, sustainable digital transformation strategies, and the development of AI models that reduce carbon emissions and resource consumption. 

AIM Green’s objectives include: 

  • Reducing AI’s Carbon Footprint – Encouraging low-power AI architectures, edge computing, and optimized AI models to minimize energy consumption in industry. 
  • Sustainable AI Hardware & Infrastructure – Supporting green data centers powered by renewable energy and promoting energy-efficient AI processors for industrial applications. 
  • AI for Circular Economy & Sustainable Manufacturing – Leveraging AI for predictive maintenance, resource optimization, and sustainable supply chain management. 
  • AI Governance & Green Policy Frameworks – Collaborating with global organizations to set sustainability standards and develop regulations that incentivize energy-efficient AI adoption. 
  • Knowledge Sharing & Capacity Building – Providing training, research, and public-private partnerships to accelerate the adoption of green AI solutions in industry. 

UNIDO’s Commitment to AI and Sustainability 

UNIDO is actively leading initiatives that align AI development with climate action, sustainable manufacturing, and resource efficiency. Through global alliances, policy advocacy, and industrial partnerships, the organization is ensuring that the next wave of AI-driven industrial innovation is not only technologically advanced but also environmentally responsible. 

For more information on UNIDO’s initiatives in AI and sustainability, visit aim.unido.org. 

For media inquiries, please contact: 

aim-global@unido.org 

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