Sustainable Development Conference in Vienna: ECESBF’s Active Participation and Key Speeches

ECESBF expert O.Lenski participated in “AI for Developing Countries Forum”, speaking at a panel dedicated to AI impact on inclusive and sustainable development. Key points of his message were:

➡ AI can and should help in Sustainable Finance development. According to S&P Global, out of ca USD 1 trln of Sustainable bonds issued in 2023, 99% have been issued in high or middle income countries or by supranationals, which leaves only 1% for lower middle and low income economies. Among other things, this is happening because the issuers of such bonds are struggling with data for reporting (providing evidence of appropriate allocation). And while in developed world there is a variety of AI based solutions to streamline the data collection, as well as regulatory push (by e.g. hashtag#CRSD), there is very little available in developing countries, or the entry barriers (costs) are prohibitive. The AI powered interfaces creating reports based on available data – like e.g. Impact Scoring Platform developed by Greenomy, may serve as an example of such solution.

➡ At the same time, we must be aware of the ways AI itself affects environment. Data centers are known for using large amounts of water to cool their systems so the servers don’t overheat. In a recent study, researchers estimated that every ChatGPT conversation that includes 20-50 questions leads to a 500-milliliter of 🚰water being consumed at a data center (an example from AI Accelerator Institute that was very much picked up during panel discussion and subsequent Q&A). Innovation and transparency should be an answer here. There have been breakthroughs in sustainable infrastructure for AI with Nordic companies like Green Mountain AS - Data centres playing potentially a significant role.

➡ Finally, there should be a clarity who is producing the efforts and making the decisions, human or AI, and where exactly they help of AI was used. Many developing countries (notably Uzbekistan) have endorsed AI research and creation of AI hubs, but ethical norms’ promotion (legislatively or else) are lagging behind. There is nothing yet like hashtag#EUArtificialIntelligenceAct laying out rules on data quality, transparency, human oversight and accountability. Developing countries will be pushing for AI development, not least for the fear to be missed out, but neither they have their own technology, nor strong regulation, and this is where they can be exploited. Ideally, a binding initiative, similar to Paris Agreement on Climate, should be called to life.

These insights resonated strongly with the audience, leading to a lively discussion. Further details can be found on Oleg Lanskoy’s LinkedIn page: link.