Abstract

Artificial Intelligence (AI) has transcended the tech sector, garnering significant attention from traditional industries, governments, and society as a whole. While AI promises substantial productivity gains, accelerated innovation, and enhanced decision-making, concerns about its environmental, societal, and governance implications have grown. This article addresses the dichotomy of AI as both a transformative opportunity and a potential threat, seeking to provide a balanced, evidence-based perspective on the benefits and costs of AI.

We assess AI through Environmental, Social, and Governance (ESG) dimensions. This approach enables a nuanced evaluation of the benefits (e.g., efficiency, drug development, disaster management) and costs (e.g., social, legal, and democratic challenges) associated with the adoption of AI. By adopting this structured approach, we aim to facilitate the responsible and sustainable deployment of AI across industries.

Our objective is to support evidence-based decision-making among diverse stakeholders, including regulatory bodies, organizational leaders, and individuals. By contextualizing AI within broader economic and societal systems, this research contributes to a deeper understanding of AI’s complex role in shaping the future. Ultimately, this framework promotes a rational, multifaceted examination of AI, moving beyond utopian or dystopian narratives to inform the judicious integration of AI into our global landscape.

AI and ESG

AI and ESG explores the intersection of artificial intelligence (AI) and the critical environmental, social, and governance (ESG) dimensions shaping today’s business and societal landscapes. As AI technologies revolutionize industries from finance to healthcare, this monograph offers a comprehensive framework to assess AI’s potential benefits and costs, not just in terms of efficiency but also its long-term societal impact. Drawing on current debates surrounding AI’s energy consumption, biases, and societal implications, it delves into the complex, intertwined relationship between AI and ESG. Through an interdisciplinary approach, the authors evaluates how AI can contribute to sustainability while also posing risks like job displacement, privacy concerns, and environmental costs. By offering a clear, evidence-based assessment framework, this work aims to guide decision-makers—from policymakers to business leaders—in navigating the challenges of AI deployment. It also proposes a forward-looking research agenda to ensure AI’s responsible and equitable integration into society.