AI will help in the fight against climate change in several ways.

First, the technology’s ability to analyze vast amounts of complex data in a quick way will help in predicting where and when climate extremes will occur. This will result in earlier warnings when hurricanes threaten coastal regions, for example, but the same principles also hold true when it comes to heavy rainfalls, droughts, forest fires, and so on. Of course, many sensors that collect relevant data all around the globe are needed.

UN agencies are already deploying AI in vulnerable communities in countries, such as Sudan, where’s there’s a project aimed at understanding climate change impacts in specific regions in order to help these communities to adapt ahead of time.

Second, AI will help us become more efficient. Smarter traffic controls will reduce emissions of automobiles and trucks, for example, while AI will also make logistics more efficient both from an economic perspective as well as from a resource and emissions perspective.

Even global agriculture, which is responsible for around 15% to 20% of total emissions, can become more efficient thanks to AI, as AI helps improve crop cycles, helps in identifying the most arable lands, and so on.

Third, AI will help us develop new technologies to fight against climate change. Researchers and engineers can deploy AI to develop better batteries and more efficient engines, for example, and AI might also help when it comes to developing next-generation nuclear power plants and fuel, better insulation for houses, and potentially even technologies that we can’t imagine today that could be helpful in the future. 

How To Benefit from AI In the Fight Against Climate Change

The use of AI in the fight against climate change across industries is growing quickly, as the following chart suggests:

(source: GrowthMarketReports)

This market is forecasted to grow to more than $100 billion in the early 2030s, making this a quite attractive market to be active in. Investors have several options when it comes to positioning their portfolios to benefit from this growth.

Investors can choose among some of our Artificial Intelligence picks to benefit from growing AI usage in the fight against climate change, as this portfolio is positioned to let investors benefit from all kinds of AI growth. But a couple of names are especially noteworthy.

NVIDIA (NASDAQ: NVDA) is the king in the AI space. Companies and institutions trying to develop algorithms to determine climate change risks need computing power, and NVDA’s data center chips are most suitable for that. The same holds true for researchers working on advanced technologies, such as next-generation batteries – more computing power helps, making NVDA’s chips the best choice.

While not as well-known as NVIDIA, Qualcomm (NASDAQ: QCOM) is another attractive chip company for investors seeking to benefit from more and more chip usage in fighting climate change. Climate risk predictions require many sensors that are well-connected, which is where QCOM with its connectivity-heavy chip portfolio comes into play. Via its connectivity patents, QCOM should also benefit when other chip players deploy sensors that communicate with each other.