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Artificial intelligence: Catalyst or barrier on the path to sustainability?

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  • Kopka, Alexander
  • Grashof, Nils

Abstract

Artificial intelligence (AI) is often seen as a key technology for future economic growth. However, the concrete socio-economic effects have not yet been clearly researched. This is especially true for sustainability issues, which have so far been neglected in the discussion about the impact of AI despite its immense importance. Consequently, this paper focuses on the impact of AI on the regional energy system, which is considered to play a crucial role in addressing the societal challenge of climate change. Apart from the direct influence of AI on the regional energy consumption in Germany, regional differences are also investigated. For the corresponding empirical analysis, various datasets are combined and analysed in a panel-regression at the regional NUTS-3 level (Nomenclature des unités territoriales statistiques). Evidence is found that the energy decreasing/increasing effect of AI highly depends on the regional circumstances, the technological as well as industrial portfolio. Thus, a shotgun approach on subsidizing AI is not advisable when focussing on sustainability.

Suggested Citation

  • Kopka, Alexander & Grashof, Nils, 2022. "Artificial intelligence: Catalyst or barrier on the path to sustainability?," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
  • Handle: RePEc:eee:tefoso:v:175:y:2022:i:c:s0040162521007496
    DOI: 10.1016/j.techfore.2021.121318
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