AI Could Cut Global Carbon Emissions by Billions of Tonnes, Study Finds

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A new report from the London School of Economics and climate consultancy Systemiq suggests that artificial intelligence could play a pivotal role in slashing global carbon emissions—without forcing societies to compromise on modern comforts. The study, Green and Intelligent: The Role of AI in the Climate Transition, outlines how AI could be an engine of decarbonization across critical sectors of the economy.

Major Emissions Cuts in Power, Food, and Transport

The report zeroes in on three high-emission industries—power generation, meat and dairy production, and passenger vehicles—which together account for nearly half of global greenhouse gas emissions. According to the study, targeted AI applications in just these three sectors could reduce emissions by between 3.2 and 5.4 billion tonnes per year by 2035.

• Power generation: Smarter energy forecasting, grid management, and renewable integration could yield 1.8 billion tonnes in annual savings.
• Meat and dairy: AI-driven development of more appealing plant-based alternatives could cut between 0.9 and 3.0 billion tonnes.
• Transport: AI improvements in battery design, shared mobility, and route optimization could slash up to 0.6 billion tonnes of emissions annually.

These savings would dwarf the 0.4 to 1.6 billion tonnes of emissions AI is projected to generate from global data center energy consumption—even under pessimistic assumptions.

AI as a Catalyst, Not a Cost

Rather than framing AI’s environmental footprint as a risk, the authors argue it must be weighed against its transformative potential. Far from being a net negative, AI could become a net climate solution if guided properly.

The report outlines five core impact areas where AI can drive decarbonization:

1. Transforming complex systems (e.g., energy, transport, agriculture)
2. Accelerating technology discovery and resource efficiency
3. Driving behavioral change through personalized nudges
4. Enhancing climate modelling and policy design
5. Managing adaptation and resilience in the face of climate disruption

A Call for Active Government Leadership

However, the report warns that the benefits of AI won’t be realized automatically. The authors call for strong public-sector intervention to steer AI development toward climate outcomes. Without regulation and incentives, market forces alone may not deliver equitable or sustainable results.

Key policy recommendations include:

• Incentivizing green AI research and open-access innovation
• Regulating data center energy use and emissions
• Investing in global infrastructure to ensure all regions can access AI’s benefits

“Governments have a critical role in ensuring that AI is deployed effectively to accelerate the transition equitably and sustainably,” the authors write.

Read also: AI Action Summit in Paris Addresses Global AI Governance and Regulation

A Rare Win-Win Opportunity

The study makes clear that AI’s potential in climate mitigation is not just theoretical—it’s measurable, immediate, and potentially transformative. By aligning AI development with climate goals, the world can both accelerate the path to net-zero and stimulate inclusive economic growth.

“This is not a burden,” the authors conclude, “but a historic opportunity for innovation, resilience, and prosperity.”