Artificial intelligence (AI) is the combination of algorithms designed with the purpose of creating machines that present the same capabilities of human beings for decision making, problem solving and performing tasks, as they have the ability to reason, perceive and act very similar to the rational thinking of human beings. 

AI has become a necessary tool, which has helped us to use resources in a more responsible and sustainable way, to reduce and better manage the waste we generate, while taking care of the planet. 

There are different areas in which AI is already being used today; in the financial sector there are technologies that help banks to predict market patterns, detect fraud and advise their customers in their financial operations.  

The relationship of AI with ESG (environmental, social and governance factors) and sustainability can be found in the resolution of environmental and social problems facing our planet, and in the development of artificial intelligence algorithms for efficient management of information and financial and non-financial resources. 

For example, in the environmental sector, drones have been used to plant trees to combat deforestation, and intelligent buildings have also been designed to reduce energy consumption. In the agricultural sector, humidity, temperature and fertilization sensors are used. And in the energy sector, it has been used to predict energy production and diagnose possible failures, measuring the capacity of the facilities responsible for generating energy.  

Today's stakeholders demand that government and business leaders report on their positive and negative externalities, so in order to identify indicators and evaluate the progress of actions relevant to sustainability, it is essential to know the data and make it transparent. This is where AI plays a key role, helping to manage, analyze, transform and report the data needed for decision making.   

Likewise, sustainability should not remain only within organizations, but should be integrated throughout their value chain, particularly in the supply chain, as it is important to have visibility and the ability to trace products from their origin, to certify that the production of goods or services comply with ESG regulatory requirements and achieve the established sustainable objectives.  

The potential impact of climate and social risks, and ESG issues in general, have become globally relevant for governments and companies; therefore, AI-based tools can be of great help to address current issues and create a more sustainable future.

Authored by Pablo Necoechea and Mariana Ávila.