The Future is Here
"Our mission is to ensure that artificial general intelligence (AGI) benefits all of humanity," boldly declares OpenAI, an AI research organization, on its official website. In its first blog post, OpenAI wrote: "We believe that AI should be an extension of human will, distributed as freely, safely, and widely as possible."
The transformation in productivity brought by artificial intelligence has quietly begun, and the ESG field is no exception. An analysis by the World Economic Forum pointed out that there are 15 job types whose tasks are most likely to be significantly replaced by artificial intelligence, with credit officers, cashiers, and clerks topping the list. Among their tasks, 81% can be automated, and only 12% are unlikely to be affected. Ranked second are management analysts (management consultants), whose tasks could be 70% automated by large language models. Unlike clerks, 24% of the work of management analysts is less likely to be affected by AI.
Consultants who assist in providing ESG management advice and compiling ESG disclosure reports are among the most common positions in the ESG sector. According to Mioying Technology's previous analysis, tools like ChatGPT can provide guidance and assistance in aligning with disclosure standards and analyzing data, including assessing environmental and data metrics trends and identifying outliers. This could significantly improve the efficiency of ESG consulting work.
Moreover, the application of AI technology is expected to enhance the feasibility of measuring greenhouse gas emissions from value chains (i.e., Scope 3 emissions). Scope 3 emissions cover a large number of suppliers and various activities, including product transportation, employee commuting, and business travel. Calculating Scope 3 emissions requires collecting and integrating a substantial amount of original data from various components.
If this process is carried out manually, enterprises must invest significant human and financial resources to complete the task. In light of the growing demand for Scope 3 data from investors and regulators, effectively combining AI technology to accelerate data collection and processing has important implications for addressing current ESG data gaps.
Furthermore, the World Economic Forum analysis noted that the training and professional development sector is least likely to be replaced by AI, with only 6% of tasks being automated. At the same time, 68% of tasks in this sector could be enhanced through the application of AI. Currently, corporate and individual demand for ESG training and capacity-building is increasing, and AI is also expected to accelerate the launch and market promotion of various ESG theory and skills training programs.
Despite a series of potential benefits, the widespread application of AGI technology, starting with the popularity of ChatGPT, also carries various environmental and social risks. These risks are primarily related to the significant power required to support the operation of data centers, which leads to substantial greenhouse gas emissions. Additionally, inputting data and information into ChatGPT may lead to user privacy and trade secret breaches. There have also been media reports that an outsourcing company named Sama, which previously collaborated with OpenAI, hired data annotation workers in Kenya at a rate of less than $2 per hour. The workers' tasks included viewing violent and graphic imagery.