Latest News- Sustainable AI Market: Machine learning is expected to lead the Technology segment during 2025-2029

The Sustainable AI Market is being driven by Proliferation of stringent regulatory frameworks and reporting mandates

The Sustainable AI Market is expected to grow at a CAGR of 29.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 1553.1 million. The sustainable AI market is witnessing a significant shift as generative artificial intelligence (AI) is increasingly being applied and integrated beyond its traditional uses in content creation. This trend signifies a paradigm change, transitioning from purely analytical AI that merely identifies sustainability issues to generative AI that proposes and designs solutions. This development holds dual benefits: it automates and enhances the complexity of sustainability reporting and analysis, and it fuels innovation in sustainable design and scientific discovery. In the realm of reporting and compliance, generative AI is proving to be a game-changer. Faced with intricate regulatory frameworks such as the European Union Corporate Sustainability Reporting Directive, organizations are leveraging generative AI to process massive amounts of unstructured data, including supplier contracts, internal communications, and news articles, to pinpoint relevant Environmental, Social, and Governance (ESG) data points and subsequently synthesize this information into compliant, narrative-rich reports. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Technology
  • Machine learning
  • Natural language processing
  • Deep learning
  • Others
• End-user
  • Healthcare
  • Retail and e-commerce
  • Manufacturing
  • Others
• Deployment
  • Cloud-based
  • On-premises
• Application
  • Energy management
  • Carbon emission tracking
  • Climate risk assessment
  • Smart agriculture
  • Others
• Geography
  • North America
    • Canada
    • Mexico
    • US
  • Europe
    • Germany
    • UK
    • France
  • APAC
    • China
    • India
    • Japan
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Proliferation of stringent regulatory frameworks and reporting mandates
• Economic imperatives and tangible return on investment
• Accelerated technological advancement and accessibility

However, the market also witnesses some limitations, which are as follows:

• Intrinsic environmental cost and energy consumption of AI systems
• Deficiencies in data quality, accessibility, and standardization
• High implementation complexity and scarcity of interdisciplinary talent

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Market Scope in Sustainable AI Market Research Report

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Research Analysis Overview

In the realm of Sustainable AI, "AI for sustainability" and "Green AI solutions" are at the forefront, integrating technology into environmental monitoring systems, climate modeling, and resource efficiency. ESG performance metrics guide responsible AI development, while sustainable supply chains, circular economy models, and eco-friendly materials promote green manufacturing and building design. Renewable energy sources, waste management systems, and pollution monitoring are addressed through AI-powered conservation and carbon capture technologies. Sustainable transportation, responsible consumption, and environmental justice are also prioritized, along with bio-based materials, regenerative agriculture, agroforestry techniques, precision livestock farming, sustainable aquaculture, forest conservation efforts, ocean conservation initiatives, and wildlife protection strategies.

Market Research Overview

In the expanding IT software industry, the sustainable AI market represents a significant segment, driven by the adoption of ai-driven optimization, machine learning models, predictive maintenance, and energy efficiency algorithms. Companies specializing in these technologies contribute to the application software market, which encompasses enterprise and technical software, as well as cloud-based solutions. According to Technavio, the global application software market size is determined by the consolidated revenue of these businesses, providing innovative software solutions for diverse industries.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/