๐ƒ๐จ๐ž๐ฌ ๐€๐ˆ ๐ซ๐ž๐๐ฎ๐œ๐ž ๐ž๐ง๐ž๐ซ๐ ๐ฒ ๐œ๐จ๐ง๐ฌ๐ฎ๐ฆ๐ฉ๐ญ๐ข๐จ๐ง ๐จ๐ซ ๐ข๐ฌ ๐ข๐ญ ๐ฉ๐š๐ซ๐ญ ๐จ๐Ÿ ๐ญ๐ก๐ž ๐ฉ๐ซ๐จ๐›๐ฅ๐ž๐ฆ?

Our recent article โ€œThinking machines, shrinking footprints? The impact of Artificial Intelligence on energy consumption in regionsโ€, by Robert Dehghan, Nils Grashof, Sebastian Schmidt, Alexander Kopka, and Michael Woywode, explores this tension in the context of regional industrial development in Germany

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Analysing German regions between 2012 and 2023, the study combines a novel approach โ€“ web scraping from CommonCrawl and a supervised NLP model for identifying AI and sustainability adoption from company websites โ€“ with regional data on energy consumption.

Our findings offer an intriguing perspective: regions with higher AI adoption show significantly lower levels of industrial energy consumption. However, this effect has weakened over time, with stronger energy-saving effects observed during 2012โ€“2017 than during 2018โ€“2023. Importantly, the effects are not uniform across regions. Energy savings are more pronounced where both large and small firms adopt AI, highlighting the importance of broad-based technological diffusion. The energy-reducing impact of AI also becomes stronger at higher levels of relatedness to green technologies.

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