How sustainable is AI? Discover the balance between innovation, efficiency

Artificial intelligence technologies offer numerous benefits to retailers, including improved operational efficiency and sustainability practices, as well as a better customer experience.

However, it is crucial for retailers to consider the energy and power consumption associated with the implementation and use of these tools. AI applications often consume more than four times the amount of power compared to typical enterprise applications, with about 30 kW per rack versus 7 kW.

While AI can provide significant operational benefits, it is important to balance these benefits with the environmental impact and energy costs. This broader approach is essential to ensure sustainable and responsible use of these technologies. Retailers must carefully weigh the benefits of adopting AI against the potential environmental impact and increased energy costs.

Fortunately, there are certain practices retailers can adopt to ensure businesses can drive innovation while promoting environmental sustainability.

Data collection and analysis: Find the right sustainable tool

To address concerns related to AI, short-term solutions can be implemented. Two possible strategies are upgrading hardware and software or running AI workloads at lower resolutions. However, retail spaces need to be thoroughly analyzed to identify key areas for improvement and develop a tailored approach.

Companies can gather comprehensive data on operational inputs and outputs by examining a retail store’s waste streams. This information can then be used to identify specific areas that can be improved, ultimately leading to greater efficiency. By using data analytics instead of guesswork, the necessary steps to improve operations can be identified in a timely manner.

The benefits of examining unbiased raw data include:

• Informed decision making – As retailers embrace the latest AI technology, it is still important to rely on concrete and historical data when making decisions. By analyzing concrete data, retailers can gain valuable insights into their current situation, predict future outcomes, and effectively identify and address potential risks. This approach not only minimizes speculation, but also helps make more informed and sustainable business decisions.
• Operational efficiency/process improvement – The ability to increase productivity and efficiency is critical for retailers to not only keep up with their competitors but also improve the customer experience. AI aims to do just that.

However, it is important to note that the effectiveness of AI depends heavily on the quality of the data received. If the data is inaccurate, the results can be irrelevant at best and harmful at worst. A company can improve its operations and increase efficiency by optimizing workflows, maximizing the effectiveness of its supply chain operations, and reducing unnecessary labor costs that may distract from meeting customer needs.

Monitor and adapt: ​​Keep an overview and still be ahead

Companies must continuously monitor results and developments and adapt all strategies to ensure long-term sustainability. The use of waste data analytics should not be a one-off event, but an ongoing process that adapts to changing requirements over time.

For example, by continuously analyzing data and adapting to the insights gained, retailers can ensure maximum efficiency in garbage collection and container usage. This efficiency in one area can have a positive impact on other aspects of their operations. Quality data is critical as it forms the basis for leveraging AI applications.

It is predicted that AI Electricity consumption in 2028 could exceed the electricity consumption of the entire country of Iceland and potentially triple the electricity consumption of data centers. By analyzing and monitoring data and making the necessary operational adjustments, retail stores can gain valuable insights to adapt sustainable practices that meet their needs and consider their overall carbon footprint.

This informed approach can help retailers optimize AI usage to minimize their environmental footprint and maximize efficiency, leading to sustainable and responsible business practices.