Deepa Rao: The Deep Irony of the AI Solution
In Part 1, Deepa Rao explained why sustainability reporting is moving toward the same rigour as financial auditing. But as companies turn to Artificial Intelligence to solve their "data drowning" problem, a new set of risks is emerging.
Deepa calls it a "Deep Irony." We are using carbon-intensive technology to solve carbon problems.
The AI Double-Edged Sword
AI is a remarkable tool for sustainability. Deepa points to real-world use cases that are already moving the needle:
- Grid Optimisation: Using AI to predict energy needs and reduce waste.
- Agricultural Resilience: Predicting crop failures and optimising supply chains to reduce food waste.
- Climate Modelling: Helping CEOs map a realistic trajectory toward Net Zero rather than just picking a date out of a hat.
However, the cost of this intelligence is physical. "Training a Large Language Model (LLM) consumes enormous amounts of energy and water," Deepa notes. "Data centres are contributing significantly to the carbon footprint. You’re using an intensive technology to solve an intensive problem."
The "Black Box" Problem
The marriage of AI and Governance is equally complicated. Governance requires transparency and accountability, but AI is often a "Black Box."
"AI systems can hallucinate. They can be opaque," Deepa warns. "If a regulator asks you to explain an output, you have to be able to show how the AI reached that conclusion and how a human reviewed it. If you can't explain it, you can't govern it."
Beware of "AI-Washing"
Just as we saw the rise of greenwashing, we are now seeing AI-Washing. This is the tendency for companies to take a traditional system they’ve had for years, "bung some AI on it," and claim it's a revolutionary new sustainability solution.
Deepa suggests that AI’s most powerful role isn't just in the reporting, it’s in the Organisational Strategy. "AI can predict what will happen to your offices in coastal areas over the next ten years. It helps you build a better Business Continuity Plan (BCP). It’s about making sure the organisation doesn't get blindsided by climate issues."
In our final part, we’ll look at how the "Audit Mindset" can eliminate greenwashing and why the AI might be reading your sustainability report more closely than any human ever will.





