Schroders: AI to help solve energy crisis

Artificial Intelligence (AI) is driving a major increase in the demand for energy, which could lead to an increased need and demand for renewables. The data centers that provide the computational and storage capabilities necessary to develop, train, and deploy AI models will consume much more energy as AI applications become more widely used. Alex Monk, Portfolio Manager, Global Resource Equities at Schroders, recently discussed how AI is impacting the energy sector in an interview with CNBC Africa. Monk highlighted the potential of AI to help solve the energy crisis by optimizing energy usage and increasing the efficiency of renewable energy sources. According to Monk, AI has the potential to revolutionize the energy sector by improving the efficiency of energy production and distribution. By analyzing vast amounts of data, AI can identify patterns and trends that humans may overlook, leading to more effective energy management strategies. Monk emphasized the importance of leveraging AI technology to address the growing energy demands of the future. One key theme that emerged from the interview is the pivotal role of AI in driving sustainable energy solutions. Monk explained that AI algorithms can optimize energy consumption in real-time, enabling better decision-making and resource allocation. This not only helps reduce energy wastage but also promotes the adoption of cleaner energy sources, ultimately contributing to environmental conservation. Additionally, Monk highlighted the significance of investing in AI research and development to accelerate innovation in the energy sector. By harnessing the power of AI, companies can streamline their operations, improve productivity, and reduce costs. Monk emphasized the importance of collaboration between technology firms, energy companies, and policymakers to drive widespread adoption of AI solutions. Overall, Monk's insights underscore the transformative potential of AI in addressing the energy challenges of the future. As the demand for energy continues to rise, leveraging AI technology will be crucial in promoting sustainable energy practices and mitigating the impact of climate change. By embracing AI-driven solutions, the energy sector can pave the way for a more efficient and environmentally conscious future.