Innovation and Sustainability: The Hidden Environmental Expense of AI Development

Innovation and Sustainability: The Hidden Environmental Expense of AI Development

Innovation and Sustainability: The Hidden Environmental Expense of AI Development
14th November 2024

Artificial Intelligence is shaking up the business travel landscape, streamlining travel experiences, refining travel plans, and enhancing business service offerings. Global corporate travel is changing rapidly, with AI integrations changing perceptions and growing  expectations for efficiency through automation.

Alongside this AI transformation is a sustainability revolution; environmentally friendly practices are no longer 'nice-to-have' but a fundamental aspect of corporate travel policy for the world's leading companies. Now, the challenge for the business travel sector is to help companies to balance their sustainable pledges with their leveraging of AI tools.

“92% of business travel professionals now see sustainability as a top priority.”
Mark Corbett, Founder and Director, Thrust Carbon

Businesses and their travellers are increasingly evaluating their sustainability choices, making it essential for travel businesses to provide accurate emissions data and environmentally friendly alternatives. Ultimately, corporates want their travellers to be equipped to make informed, responsible travel decisions which align with their ESG strategies and policies.

What positive impact is AI having on sustainable travel?

Intelligently optimising travel paths for more efficient journeys 

AI algorithms are changing how companies conduct their travel programmes. Business travellers are often at the mercy of long flights, inconsistent layovers, and jetlag, leading to increasing traveller fatigue and inefficiencies. Using AI optimisations, companies can choose the most efficient travel routes, reducing travel fatigue and cutting carbon emissions.

Man stressed from business travel
Artificial Intelligence has potential to reduce traveller stress and fatigue by optimising travel routes and cutting out inefficiencies in booking processes

 

"47% of business travellers had heightened stress and anxiety from business travel, rising to 56% for those travelling at least every 2 months."
Opinium survey on behalf of World Travel Protection

Predictive travel forecasting makes tracking emissions easier

Using predictive analytics, businesses can better forecast global travel demand and manage regional travel during busy periods more efficiently. Predictive travel behaviours help booking agents, accommodation providers, and corporate travellers to save money, reduce wastage, and use resources more efficiently. Predictive travel forecasting reduces unexpected, ad-hoc schedule amendments and ensures accurate emissions data. While there will always be some market unpredictability, improved forecasting gives businesses a clearer long-term view of their travel habits, and more reliable emissions reporting.

Detailed reporting capabilities and live data calculations develop better behaviours

AI engines can help businesses to understand their available travel and accommodation options and prioritise eco-friendly alternatives. By extrapolating large data sets, AI algorithms can produce recommendations based on your travel patterns and sustainability goals, and provide digestible behavioural insights to greatly improve overall emissions. With the ability to monitor travel practices in real time, travel managers can see when travelling employees are deviating from ESG policy and advise them on-the-go.

Bringing quality assurance and ESG compliance together

AI is making it easier than ever to compare accommodation standards, especially with regard to focusing and filtering accommodation on quality, consistency, and sustainability. Tools currently on the market, such as the SilverDoor Carbon Calculator, are helping companies to choose between greener accommodation options.

“Our clients are increasingly demanding sustainable travel alternatives. We’re committed to providing choice for anyone in the corporate travel sector, to help minimise environmental impacts and create positive change.”
Al Butler, Senior Client Programme Manager, SilverDoor

Measuring the carbon footprint of property providers is just one way AI is supporting providers to offer accurate reporting and sustainable decision-making

 

Smarter technology for in-house corporate travellers

AI is assisting accommodation providers and building managers to monitor and reduce energy consumption through adjusting lighting, heating, and air conditioning based on occupancy rates. While fittings such as energy saving key card switches and LED lights help travellers to personally reduce their energy use, incorporating AI into building design could lead to a 27% total energy saving from controlled measures.

Serviced Apartment Robot
Some aparthotels, like Yotel Miami, are using robotic concierges which use AI to manage inventory and provide on site services, reducing waste, emissions and streamlining daily practices

 

What are the drawbacks of using AI in your travel programme?

Despite the significant benefits that AI is bringing to sustainable traveller experiences, several challenges remain moving forward that businesses and industry need to address together.

Eye-watering energy consumption which continues to grow

A key concern with using AI tools is the energy consumption required to power them in the first place. These powerful engines are housed and deployed via large scale data centres and are exceptionally demanding on energy resources - with over 1% of total electricity demand coming from datacentres alone. This mass use of energy is not slowing down, either. Experts predict that  this energy consumption will increase up to 300% in the next 5 years. That's the definition of unsustainable.

Then there's the water consumption. NPR reported that a mid-sized data centre consumes nearly 1.3 million litres of water every day, equivalent to around 1,000 households daily water usage. There are over 11,000 data centres worldwide. As AI use expands, projections suggest energy consumption could reach 1,000 terawatt hours by 2026 – the equivalent of Japan’s entire energy consumption. It is crucial that sustainable initiatives and environmentally friendly plans are incorporated into the business travel sector, so that our use of these tools is incorporated sustainably.

Sharing information and educating our peers for shared success

To fully harness the potential of AI in the travel sector, ongoing education and industry collaboration is key. Sharing knowledge about AI’s benefits and limitations will help travel professionals and corporate travellers make more informed decisions. Fostering collaboration between travel companies, AI developers, and sustainability experts can drive innovation and create robust, eco-friendly solutions. Over the past two years, industry events and roundtables run by industry bodies like the ITM Spring Conference, FEM Summit and SilverDoor's Market Update Breakfast have featured 

Karen Hutchings on AI in travel
At our 2024 Partner Engagement Day, SilverDoor Consultant, Karen Hutchings, explored machine learning in travel programmes, how conversational AI can reduce admin-based tasks while managing and monitoring cost, compliance and sustainability

Responsible implementation of AI is key to its longevity

AI undoubtedly has great potential, the benefits to supply chain workflows and traveller well-being are already becoming clear. Deployed correctly, AI tools can enhance efficiency while embedding ESG factors throughout the planning, booking and travel phases. The ongoing integration of AI promises to shape a more responsible and sustainable future, but only if the business travel sector can work together to create industry wide solutions to its flaws.

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The AI and sustainability conversation is still in its infancy, but it is a dialogue that will continue to challenge decision makers in the corporate travel sector. Either way, a transparent ESG strategy must now encompass the implications of using AI in your everyday practices.

There has been plenty to celebrate for the corporate accommodation supply chain in recent years – property operators are increasingly measuring and sharing their emissions data, serviced apartment agents are equipping their stakeholders with the tools to make intelligent sustainable choices, and corporate accommodation programmes have begun embedding ESG principles into their booking practices. Building industries are adopting stronger Corporate Sustainability Reporting, Energy Performance Directives, and BREEAM certifications in line with the Paris Agreement.

Evolving Artificial Intelligence tools present a mixed blessing. On one hand they continue to streamline travel and reduce unnecessary emissions, but on the other, there’s a significant carbon cost attached to this new technology.

How can our sector cooperate and collaborate to leverage AI effectively while continuing to reduce our collective carbon footprint? Are large scale predictive models required, better energy flexibility, performance directives, or perhaps something else entirely?

 

Let us know what you think in our three-question survey below.

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