Source: BBC
Artificial intelligence (AI) is increasingly being employed by major global brands to analyze climate risk data, helping them better understand and mitigate the potential impacts of climate change on their operations. With the growing threat of extreme weather events, rising sea levels, and shifting climate patterns, companies are under pressure to adapt their business models and strategies to become more resilient in the face of environmental challenges.

AI-powered tools are capable of processing vast amounts of climate data and providing actionable insights that can inform decision-making. These systems analyze historical climate patterns, predict future risks, and model potential scenarios that could affect supply chains, production facilities, and consumer demand. For example, AI can help companies forecast the impact of droughts on agricultural production or assess the vulnerability of coastal assets to rising sea levels.

Big brands are using these insights to develop more sustainable practices, reduce their carbon footprints, and align with global climate goals. AI is also helping them navigate regulatory pressures as governments implement stricter environmental policies. By leveraging AI to assess climate risks, companies can anticipate future challenges and take proactive steps to mitigate them, such as relocating facilities, diversifying supply chains, or investing in renewable energy sources.

However, the article notes that while AI offers powerful tools for climate risk management, it is not without challenges. Data quality and availability can limit the effectiveness of AI models, and there are concerns about over-reliance on technology without adequate human oversight. Additionally, smaller companies may struggle to access the same AI-powered resources, potentially widening the gap between large corporations and smaller businesses.