As featured on BusinessMirror: AI’s dual promise: Enabling positive climate outcomes, powering the energy transition
Artificial intelligence (AI) is not a threat to climate progress; it is likely the greatest accelerator of it. A KPMG Global study explores how organizations are using AI to drive sustainability and where action must accelerate. It draws on insights from over 1,200 executives across twenty markets, spanning energy producers (utilities, renewables, infrastructure developers) and major energy consumers (hyperscalers, data center operators, and technology firms), all of whom play a critical role in shaping global energy solutions.
Discussing key themes such as:
- AI and its expanding climate handprint, powering adaptation solutions, enabling greater energy efficiency, biodiversity protection, and circular innovation.
- System-wide transformation: AI is enabling real progress on sustainability across value chains, from manufacturing and transport to agriculture and buildings, and helping to create positive value for companies that are addressing their climate risk exposures.
- Progress is uneven, particularly due to challenges in scaling clean energy solutions globally. Infrastructure bottlenecks, policy delays, and financing barriers risk slowing down momentum. The next 24 months, through 2027, will be decisive in closing this gap.
- Market pull for innovation: AI is growing fast and creating new markets for advanced clean technologies, reducing commercialization cycles from decades to years.
The research revealed a call for immediate attention
- 87 percent say AI is central to achieving net zero goals
- 45 percent plan to meet energy needs primarily through onsite generation
- 97 percent describe AI as a net positive for accelerating progress towards net zero goals
- 29 percent extend net zero commitments to their full value chain
It speaks directly to the key stakeholder groups (Hyperscalers, Utilities, Developers, Investors and Governments) who stand at the crossroads of AI acceleration and climate responsibility. Each faces a different version of the same challenge: how to advance AI without undermining sustainability and how to use sustainability as a competitive advantage.
In the Philippine Context
Sustainability trends in the country are increasingly aligned with global developments, particularly the growing recognition of AI sustainability in the Philippines and its potential to play a meaningful role in advancing environmental efforts. This shift in perspective reflects a broader understanding that, when applied responsibly, technology can help address complex environmental challenges while supporting long-term development goals.
This belief is reinforced by local research and initiatives that demonstrate tangible results. For example, a research team from a leading academic institution has launched a project that uses AI and data analytics to improve water resource management. Their work demonstrates how advanced models can provide deeper insights into water behavior and quality. This highlights how AI in sustainability strategies enables more informed and effective environmental decision-making.
Beyond academia, government institutions are also integrating AI into sustainability initiatives. The Department of Science and Technology, for instance, is incorporating AI into regional development programs in the CARAGA region, encouraging its use alongside circular-economy practices to help build smart, sustainable communities. Collectively, these initiatives reflect the growing confidence of Filipino scientists, policymakers, and communities in AI as a research-driven, practical tool for achieving long-term sustainability goals.
Alongside these efforts, AI is emerging as a valuable enabler in the country’s energy transition. It can support the management and integration of renewable energy sources, optimize performance, and improve energy forecasting. AI-powered technologies can help Philippine utilities better balance supply and demand across the grid’s many islands and optimize energy systems. Despite these promising developments, challenges remain.
Ultimately, while AI and climate change present powerful opportunities to accelerate sustainability efforts in the Philippines, long-term impact will depend on balanced implementation, strong governance, and continued investment in clean energy and human capital. By aligning innovation with responsible planning, the country can harness AI not only as a technological advancement but as a strategic driver of inclusive and sustainable growth.
This excerpt was taken from the KPMG Thought Leadership publication “AI's dual promise: Enabling positive climate outcomes and powering the energy transition”.
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This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.