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PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

Last year, I wrote a handful of blogs (here, here and here) about how AI and sustainability teams could learn from each other in terms of determining, communicating their respective business value – and how to move forward. I saw parallels in hype cycles and irrational exuberance between AI and sustainability back in the 1990s. I suggested that AI teams could learn from sustainability’s history while sustainability might have an opportunity to update its thinking on quantifying intangible (or at least prospective) business value.

It shouldn’t be all that surprising to hear that AI may also be replicating the sustainability crash of the 1990s as well.  Fortune reported on a new study – The GenAI Divide: State of AI in Business 2025, a new report published by MIT’s NANDAinitiative.

According to the article

“while generative AI holds promise for enterprises, most initiatives to drive rapid revenue growth are falling flat.

Despite the rush to integrate powerful new models, about 5% of AI pilot programs achieve rapid revenue acceleration; the vast majority stall, delivering little to no measurable impact on P&L… for 95% of companies in the dataset, generative AI implementation is falling short… MIT’s research points to flawed enterprise integration.”

Hmmm – “flawed enterprise integration” huh? Sounds familiar – maybe AI and sustainability teams should get together and have a few beers.

Members can learn more about AI in sustainability here.

Members have access to this and more. If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then.

Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.

Are you a client of one of our Partners – SourceIntelligence, TRC, Kumi, Ecolumix, Elm Consulting Group International or Impakt IQ? Contact them for exclusive pricing packages for PracticalESG.

Practical Guidance for Companies, Curated for Clarity.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one of… View Profile