Artificial Intelligence and Its Role in Building Sustainable Business Models

Digital transformation, Industrial, AI, Sustainable Business, Circular Economy, Resource Efficiency, Carbon Reduction, Indian industry, ESG (Environmental, Social, Governance), Innovation, Economic Growth

This study delves into the importance of artificial intelligence (AI) in helping Indian businesses move towards greener and more sustainable practices. It aims at understanding the role of AI in the development and implementation of green business strategies in India, analyzing specific case studies from India where AI has helped in optimizing the usage of resources and reducing the environmental impact, identifying key performance indicators (KPIs) for monitoring sustainability outcome from AI, and identifying challenges in the adoption of AI and giving responsible solution to such challenges and providing practical guidelines to policy makers and business leaders in India interested in implementing sustainable development through the use of artificial intelligence.The study was a combination of both quantitative and qualitative and comprised of market information, deep interviews with key experts in the Indian industries (manufacturing, energy, logistics and agriculture), and a structured questionnaire that was given to 50 key experts. More than 60% of the companies surveyed are already using AI to help achieve their sustainability goals, with AI tools for the circular economy, predictive maintenance and logistics optimization being among the most common uses. Research has shown that implementing AI tools can not only boost efficiency and reduce carbon emissions, but it can be directly associated with a positive change in these areas. In addition to revenue opportunities from circular business models, businesses with more advanced AI projects also say they have seen a decrease in their carbon footprint with reductions ranging from 26% to 40%, and an average of 48% increase in resource efficiency. But the research also identifies business challenges such as lack of expertise, ethical and governance issues and data infrastructure gaps in many businesses. The study recommends the need for specific incentives for the responsible use of AI, strengthening governance processes, investing in AI-related digital infrastructure, and capacity building for AI skills in the industry. The result's findings provide a valuable guide for Indian companies and government initiatives to leverage the power of AI in environmental management and sustainable development.