A new study from Systemiq and the Grantham Research Institute on Climate Change and the Environment shows artificial intelligence (AI) could drive major emissions reductions across energy, transport and food – if applied strategically. Published in the Nature journal npj Climate Action, the research outlines how AI could become a key tool in the global push for net-zero.
New research suggests AI could play a major role in tackling the climate crisis, with the potential to cut global greenhouse gas emissions by 3.2 to 5.4 billion tonnes of carbon-dioxide-equivalent annually by 2035.
The study highlights three high-emitting, interconnected sectors – power, transport, and food – which together account for around half of global emissions. Effectively applying AI across these areas could not only significantly reduce emissions but also outweigh the technology’s own energy footprint, including that from data centres and supporting infrastructure. Accelerating low-carbon solutions in these sectors may also trigger positive tipping points throughout the broader economy.
An unprecedented opportunity to leverage AI as a catalyst for the net-zero transition
AI’s potential is broken down into five core areas: improving complex systems, speeding up innovation, encouraging behavioural shifts, shaping better policies, and strengthening resilience and adaptation.
For example, in the power sector, AI could boost the performance of renewables by improving grid management and pushing up the output of wind and solar by as much as 20%. In the food sector, smarter algorithms could nudge behaviours and accelerate the adoption of alternative proteins, shifting diets away from meat and cutting emissions even further.
There’s also a role for AI in climate finance, particularly in emerging markets. Algorithms can help investors make smarter, faster decisions in places where reliable data is hard to come by, reducing the perceived risk of low-carbon projects. And in a world facing increasingly severe climate events, AI is already helping governments and communities prepare – from flood warnings to wildfire tracking.
This study comes at a time when global climate policy is in flux and public debate around AI is heating up. It offers a grounded, evidence-based view of how AI could, if used well, help bend the emissions curve and do so quickly.
But the research is clear: this will not happen on its own. AI is not a silver bullet, and without focused application, strong governance and global cooperation, much of this potential could be lost.
As governments and businesses gear up for COP30 and reflect on the patchy progress since Paris, this research adds weight to a new kind of climate conversation – one that’s not just about risks and costs, but about smart solutions.
Nicholas Stern, Chair of the Grantham Research institute on Climate Change and the Environment at the London School of Economics and Political Science said:
“Artificial Intelligence holds transformative potential to accelerate the climate transition in emerging and developing economies – helping to unlock investment, reduce risk, and leapfrog outdated infrastructure – yet realising this promise requires targeted public investment, shared data and equitable access to AI capabilities so that no country is left behind in the net-zero transition.”
“Governments have a critical role in ensuring that AI is deployed effectively to accelerate the transition equitably and sustainably. Without active public policy, the commercial incentives to apply AI in the socially productive areas described may be weak relative to application in influencing consensus demand, which may be somewhat less socially useful.”
Mattia Romani, partner and head of sustainable finance at Systemiq and Senior Visiting Fellow at the Grantham Research Institute, LSE said:
“Our research shows that with the right collaboration – between governments, tech companies, and energy providers – AI can be harnessed to accelerate climate action, not hinder it. By intentionally directing AI towards clean growth, adaptation, and resilience, we can ensure it delivers real benefits for people and the planet.”
“Artificial Intelligence holds transformative potential to accelerate the climate transition in emerging and developing economies – helping to unlock investment, reduce risk, and leapfrog outdated infrastructure – yet realizing this promise requires targeted public investment, shared data, and equitable access to AI capabilities to ensure no country is left behind in the net-zero transition.”
