Among the surveyed nations, India stands out as a leader, with 64% of its business leaders actively leveraging AI for sustainability—a stark contrast to the 27% adoption rate in the UK.

The State of Sustainability Readiness 2024 Report, commissioned by IBM and independently conducted by Morning Consult, has illuminated a transformative global trend: the increasing adoption of AI to address sustainability challenges.

Based on interviews with 2,790 business leaders across 15 industries and nine countries, this report highlights India’s unique position as a trailblazer in using AI to align corporate strategy with environmental responsibility.

AI: A Catalyst for Sustainability in India

India’s leadership in AI adoption reflects its advanced stage of digital transformation and its commitment to integrating cutting-edge technologies into core business processes. A significant driver of this trend is the nation’s reliance on brand reputation, a heightened expectation for AI’s integration into sustainability efforts, and targeted investments in skill enhancement.

Indian executives demonstrate unparalleled confidence in AI’s potential, with 9 out of 10 agreeing that AI will positively impact their sustainability goals. However, a global paradox emerges: while 90% of leaders recognize AI’s potential, more than half have yet to implement it for sustainability initiatives.

This gap underscores a key opportunity for Indian organizations to solidify their leadership by setting examples of effective AI-driven sustainability practices.

Addressing Top Sustainability Challenges

Globally, organizations identified climate risk, energy use, and skilled workforce availability as their top three sustainability challenges. Indian leaders and their German counterparts are particularly proactive in tackling these issues, with a strong emphasis on addressing water use challenges—a critical issue given India’s ongoing struggles with water scarcity.

By adopting AI-enabled strategies, Indian businesses can optimize resource management, enhance asset health, predict failures, and extend the infrastructure lifecycle. These capabilities reduce operational risks and demonstrate the tangible environmental benefits of AI integration.

AI’s Role in Closing the Skills Gap

Another pressing concern highlighted in the report is the global shortage of skilled talent, particularly in emerging fields like AI and generative AI. Indian organizations are uniquely positioned to address this challenge through targeted AI training and skill development investments. This dual focus on technology and talent ensures India leads in AI adoption and creates a workforce ready to sustain this momentum.

Developing Markets Leading the Charge

India, Brazil, and the UAE represent the vanguard of AI-driven sustainability among developing markets. These nations’ leaders consistently exhibit an optimistic outlook on AI’s potential, driven by their advanced digital infrastructure and strategic investments.

India’s proactive stance underscores the nation’s commitment to leveraging AI as a strategic tool for achieving organizational and environmental sustainability. This alignment with global sustainability goals positions India as a model for other nations, demonstrating how technology can drive measurable progress in combating climate risks.

Unlocking AI’s Full Potential

Despite the promising outlook, only half of the global leaders surveyed expressed confidence in their readiness to address climate risks. This gap highlights the need for robust frameworks, cross-sector collaboration, and increased investment in AI capabilities.

This gap presents an opportunity for India to reinforce its leadership by scaling AI solutions that holistically address sustainability challenges. From water management to energy optimization and climate risk mitigation, Indian enterprises can be global exemplars of harnessing AI for sustainable growth.

Conclusion

The State of Sustainability Readiness 2024 Report paints a compelling picture of India’s potential to lead the global AI revolution for sustainability. With high adoption rates, strategic investments in AI expertise, and an unwavering focus on addressing critical challenges, India is not just participating in the global conversation on sustainability—it is defining it.

As businesses worldwide recognize AI's transformative potential, India’s leadership inspires by reminding us of the opportunities that emerge when innovation meets purpose. By prioritising AI-driven sustainability, India is paving the way for a future where technology and environmental stewardship go hand in hand.

Source: The State of Sustainability Readiness Report 2024

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