Technology is accelerating business growth today and will continue to do so in the future. The fast-growing Artificial Intelligence (AI) technologies are predicted to grow at a compounding growth rate (CAGR) of 37% from 2023 to 2030. This is expected to dramatically revolutionize the manufacturing and service sectors in efficiency, productivity, innovation, quality, agility, flexibility, and cost in the VUCA environment. Like any other new technology, AI with many benefits comes with an associated set of adversities, risks, and challenges. It can have a significant effect on the sustainability of world business. For sustainable growth in the world, the United Nations (UN) laid down 17 goals, known as Sustainable development goals (SDGs), in 2012. When the growth initiatives adversely impact the 17 SDGs it calls for attention. It, therefore, becomes imperative for leaders to understand each of the AI challenges, their impact on the SDGs, and potential countermeasures for navigating the business in the future.
The seven factors of the accelerating global growth of AI technologies likely to adversely impact the different UN SDGs are:
Digital divide: Marginalized groups like farmers, the poor, MSMEs, and underdeveloped economies do not have access to these technologies, tools, software, and markets and do not get the data and information for improvement and growth. This is creating a great degree of digital divide in the world. Therefore, it directly impacts the UN SDGs 2 (zero hunger) and 10 (reduced inequalities).
Energy demand: To train and use the AI models, especially Deep learning models, an unprecedented consumption of electrical power is predicted. With the accelerated growth of AI, this unprecedented demand for electrical power is a huge challenge. This is expected to harm SDGs 7 (Affordable and clean energies) and 12 (Responsible consumption and production).
Inequality and bias: Biased data can create erroneous outcomes from the algorithms that could be biased in terms of gender, ethnic groups, creed, financial standing, etc. If the hiring, education system, healthcare, and administrating social justice algorithms are biased, the applicants, students, patients, and justice seekers can be treated differently, leading to inequality, disparity, and biases. Such disparities can create discontentment and unrest in the world. This is expected to adversely affect SDGs 3 (Good health and well-being), 4 (Quality education), 5 (Gender equality), 10 (Reduced inequalities), and 16 (Peace, justice, and strong institutions).
E-waste: The new developments and large deployment of AI technologies using sensors, electronic components, and chips are expected to lead to high consumption of e-waste. This involves the extraction of a large amount of e-material from Mother Earth and huge e-waste generation.
This creates an unhealthy environment for human beings and nature. Therefore, it is expected to adversely impact SDGs 12 (Responsible consumption and production),13 (Climate actions), and 15 (Life in land).
Privacy curb: Personal data is the core for the smooth operation of AI leading to the risk of privacy curbing. Sensitive data could be misused. Cybersecurity is already a big challenge. This is, therefore, a huge barrier to SDG 16 (Peace, justice, and strong institutions).
Job Loss: The automation element of AI technology is expected to reduce routine, mundane, repetitive, menial, and risky work by labour in service areas and shop floors. This will majorly alter the labour employment market in populous countries creating economic challenges. Alternatively, this could upgrade the job market in the long run. However, there will be a hit initially. This will adversely hit SDGs 1 (No poverty) and 8 (Decent work and economic growth).
Environmental Pollution: With the increase in e-waste generation and its disposal challenges, unprecedented energy consumption, and heavy use of natural resources in the AI growth journey environmental pollution levels are bound to increase. This will result in challenging SDGs 6 (clean water and sanitation), 12 (Responsible consumption), and 13 (Climate actions).
Approximately 76% of the SDGs (13 out of 17 SDGs) are adversely affected by the factors resulting from the unprecedented growth of AI technologies. Therefore, business leaders must understand, be aware, and take countermeasures to curb the ill effects.
The recommended countermeasures to slow down the negative effects of growing AI are, Circular economy measures on consumption and production processes, regulations and control on the use of AI systems, energy-efficient/ Green model creation, unbiased algorithm usage in the deep learning models, and human-led technology application.
In summary, to create sustainable business growth in the future, corporate leaders must understand the adverse impact of the growing AI technologies. As the targets of the sustainable goals set by the United Nations are challenging, implementation of the countermeasures can help its achievement by 2030.
(Author- Prof. Ravindra Ojha at Great Lakes Institute of Management Gurgaon)