How artificial intelligence and machine learning can make your business more sustainable

• AI can help SMEs be more sustainable in many ways, from reducing energy use to optimising transport and logistics.
• Many applications have low or even no upfront costs. Systems are available on a subscription basis.
• More sophisticated applications can often be built with partners. Investment may be needed - but may qualify for “super deduction” tax relief.

Sustainability is a key focus for many SMEs – with a resounding 89% saying it was important to their business in a 2021 Lloyds Bank survey. And artificial intelligence (AI), until recently the preserve of large firms with specialist data teams, can now help SMEs achieve their sustainability objectives.

AI, a broad term that includes machine learning (ML), has connotations of a robotic future, not a green one. But for many firms, sustainability is about driving efficiency, and the latest AI tools can enable even the smallest firms to make their operations more effective.

For many businesses, reducing energy usage is an important first step. With rising energy prices, the case for investing in energy efficiency has never been stronger - and there are many off-the-shelf products and services that use AI to get energy usage as low as possible.

Whether it's controlling heating in offices, or energy use in an industrial process, they all 'learn' about energy usage patterns to minimise waste.

All of these tools can be deployed without high upfront costs. A long list of software providers now offer AI-powered services to SMEs on a subscription basis, thanks to cloud computing.

An  EY report for the government, on AI in business, published in July 2021, noted that some firms may already be deploying AI in packaged products or services, without even knowing it.

Why SMEs need help with AI for sustainability

How SMEs can overcome the challenges of AI

SMEs using specialised AI to help them be more sustainable can encounter barriers such as costs and perceived risks, along with challenges in finding staff with the right skills.

However, the AI in UK Business report estimates that around one-third of SMEs using AI have developed in-house applications, with a further 15% creating bespoke systems using outsourced developers.

While development will be an upfront cost, if incurred before March 2023, firms may qualify for the 130% “super deduction” capital allowance - a 25p tax cut for every £1 spent.

Firms may also benefit from the Digital Manufacturing on a Shoestring project, run by the universities of Cambridge and Nottingham, that helps SMEs with small budgets use advanced technology with low risk.

Another route is to experiment with a growing number of low-code or no-code platforms, which can help engineers and developers with no specific AI experience put the technology into action. For instance, Microsoft’s Lobe image recognition system  can be downloaded and run on a £100 computer system.

There are also online training courses to help managers deal with HR or ethical issues that may emerge if AI becomes more pervasive in the firm (such as Sustainable AI in Business from Agora, produced with EU funding).