Riaz Raihan is SVP & Chief Digital Officer at Trane Technologies.

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Artificial intelligence (AI) sits squarely at the center of one of today’s biggest tensions. On one hand, AI is contributing to the rapid growth of global energy demand and the resulting strain on infrastructure. On the other hand, it's one of the most powerful tools we have to reduce waste and emissions at scale. Both facts are true, but rather than fixating on the energy that AI consumes, let’s focus on the sustainability impact it can deliver.
Systemic risks are intensifying as heatwaves, floods, wildfires and drought become more common. The resulting disruptions are affecting people and organizations everywhere, and the pace of escalation is outpacing the tools in our current toolbox.
This is where AI’s value comes into focus as a powerful lever when combined with human expertise, collaboration, policy alignment and a willingness to rethink our systems. We’re just beginning to understand and apply its potential.
AI Is Already Delivering Sustainability Impact
AI is already operating at the speed, scale and complexity that today’s challenges require. And we're seeing that unfold in real-world deployments that reduce energy demand and emissions across sectors.
For example, operations in the built environment account for nearly 30% of global energy-related emissions, much of it from heating and cooling. At the same time, almost one-third of the energy procured for the commercial-built environment is wasted after purchase.
AI is also driving progress in grid resilience and energy demand management. The International Energy Agency (IEA) states that global energy demand grew at a "faster-than-average pace in 2024," as the consumption of electricity rose worldwide. When deployed across energy grids, AI-enabled energy demand management programs can help meet this demand more sustainably.
Transport and agriculture are also areas of opportunity. Commercial transport is being optimized through AI algorithms that design routes for maximum efficiency. AI-powered logistics are being used in transport refrigeration to optimize delivery routes for perishable foods, resulting in faster transport and less spoilage. In terms of food production, roughly half of the world’s arable land is used for food production, but 2021 research by the WWF and Tesco shows that around 40% of the resulting food is wasted. AI can help farmers predict yields and identify crop risks as well as retailers improve inventory planning to reduce losses and food waste.
These examples are just the beginning. AI can offer even bigger opportunities for impact if we deepen our focus and investment.
A Thought Experiment: Could AI Save More Energy Than It Consumes?
AI is contributing to a broader surge in energy needs across systems. As we rethink our approach to energy demand management, here’s an interesting thought experiment: What if AI could save more energy than it consumes?
Take a moment to absorb these statistics. Per an International Energy Agency (IEA) analysis, the world consumed 28,000 TWh (terawatt-hours) of electric power in 2025. Roughly 30% of global energy use is from building operations, including commercial facilities, residential buildings and data centers. We now have AI-powered technologies that can help reduce the amount of energy that buildings use. A 2024 study led by researchers at Lawrence Berkeley National Laboratory found that implementing AI in buildings could reduce overall energy use and emissions by up to 19% by 2050. If deployed globally and uniformly in the built environment, AI could, in theory, reduce global energy consumption by almost 1,600 TWh.
Now ask yourself: How much electric power did data centers consume globally in 2025? A recent estimate by Gartner analysts is 448 TWh.
The math is revealing. If AI-enabled building technologies reach even a portion of the built environment, the energy savings could be larger than the total amount of electricity used by data centers today. Even as global power demand surges over the next decade, AI can be "energy neutral" for the planet, saving more power than it uses while also unlocking many other benefits.
Of course, real-world challenges remain. How is the software deployed? Who owns the IP? Who pays for it? Can it be integrated into new HVAC equipment, or is it an after-market solution?
AI sustainability solutions exist today, but they'll require human ingenuity, political will and public-private partnerships to fully leverage their potential.
The Role Of People, Partnerships and Policy
Technology alone can't drive transformation. Without the right talent, even the most powerful AI tools will fall short. Skilled people are essential for translating AI’s promise into impact, and continued investment in workforce skills and expertise is what will ultimately increase AI’s ability to drive change.
Cross-functional collaboration between sustainability, technology and business leaders is crucial. We need to accelerate proven solutions through shared standards, platforms and partnerships. People, again, are key here, applying their unmatched ability and expertise to act as collaborators, strategic thinkers and system connectors, not just operators of AI tools. And balanced policy, with thoughtful regulation and oversight that enables innovation, will play a critical role.
Turning Innovation Into Measurable Progress
To meet this moment, we must harness every tool that delivers impact. There's no time to wait for perfect conditions or ideal policy. AI is capable of unlocking measurable and scalable economic transformation now.
The next phase of our progress will be shaped by how intentionally we invest in and apply AI. When we zoom out to the big picture, we see that, in many cases, our current systems have normalized inefficiency. One of AI’s greatest strengths is in identifying and eliminating that issue at scale, uncovering and correcting systemic waste. To achieve those benefits, we'll need to invest simultaneously in technology, talent and collaboration across industries and functions.
The opportunity is here. The potential and the results are visible. What's needed now is the collective will and coordinated action to maximize AI’s potential for transformational progress.
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