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

Artificial intelligence technologies offer numerous benefits to retailers, such as improving operational efficiency and sustainability practices and enhancing customer experience.

However, it's crucial for retailers to consider the energy and power consumption associated with implementing and utilizing these tools. AI applications often consume more than four times the amount of power compared to typical enterprise applications, with around 30 kW per rack as opposed to 7 kW.

While AI can provide significant operational advantages, it's essential to balance these benefits with the environmental impact and energy costs. This more comprehensive approach is vital to ensure sustainable and responsible use of these technologies. Retailers need to carefully weigh the benefits of AI adoption against the potential environmental impact and higher energy costs. 

Fortunately, there are specific practices that retailers can adopt to ensure that businesses can move forward with innovation while promoting environmental sustainability. 

Data Collection & Analysis: Find the right sustainable tool  

In addressing concerns surrounding AI, there are short-term solutions that can be implemented. Two possible strategies are upgrading hardware and software or running AI workloads at lower resolutions. However, retail spaces need to undergo thorough analysis to identify key areas for improvement and develop a customized approach.

Businesses can gather comprehensive data on the operation's inputs and outputs by examining a retail store's waste streams. This information can then be used to pinpoint specific areas for improvement, ultimately leading to increased efficiency. Embracing data analysis in lieu of guesswork allows for timely identification of the necessary steps to enhance operations.

The benefits of examining non-biased, raw data include:

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

However, it’s important to note that the effectiveness of AI is heavily reliant on the quality of the data it receives, and if data is inaccurate, outputs have the potential to be irrelevant at best and damaging at worst. A company can elevate its operational processes and enhance efficiency by optimizing workflows, maximizing the effectiveness of its supply chain operations and reducing unnecessary labor that may be diverting attention from meeting the needs of its customers.

Monitoring & Adapting: Keeping tabs while staying ahead

Businesses must continuously monitor results and developments, and adjust any and all strategies to ensure long-term sustainability. Utilizing waste data analytics should not be a one-time occurrence but an ongoing practice, adapting as needs change over time.

For example, by continuously analyzing data and adapting to its findings, retailers can ensure maximum efficiency in waste pickup and container use. This efficiency in one area can have a positive impact on other aspects of their operations. Quality data is essential as it forms the foundation for the utilization of AI applications.

It’s predicted that AI's power consumption in 2028 could exceed that of the entire country of Iceland, potentially tripling data center power usage. By analyzing and monitoring data and making the necessary operational adjustments, retail spaces can gain valuable insights to customize sustainable practices that suit their needs and consider their overall carbon footprint. 

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