Digitalisation and sustainability: how AI can help

The European manufacturing industry faces a huge challenge: to digitalise and become more sustainable simultaneously in order to meet climate goals. This Twin Transition requires smart technologies that accelerate processes, such as popular AI tools like ChatGPT, Microsoft Copilot, and Claude. While these tools can significantly contribute to circularity, they also present a paradox. How responsible is it to use technologies for sustainability that consume large amounts of energy and scarce resources?

Testing ground for TNO

TNO collaborates with European partners on solutions to help manufacturing companies become more sustainable. DaCapo, the Horizon Europe project, is where this collaboration takes place. ‘The goal of DaCapo is primarily to help the European manufacturing industry become more circular with tools, methodologies, information, and further support,’ says Nick Oostervink, Senior Project Manager ICT at TNO. ‘But the project itself is also an interesting test environment for us, as we, as a research organisation, are equally confronted with the paradox of the Twin Transition. We wrote a paper about the dilemmas we encountered and the considerations you can make.’

Digital circularity advisor

An important part of the project was developing an agile methodology. The TNO team experimented with developing a digital circularity advisor: an AI tool that could help manufacturing companies operate more sustainably. ‘Many entrepreneurs want to become more sustainable but don't always know where to start,’ says Ilse Hellemans, Consultant at TNO. ‘They have questions like: How do I make my processes more circular? Which partners can help me with this? What can I do with residual materials? The vast amount of available data can make it difficult for companies to find the right circular strategies. A personalised AI chatbot can provide tailored advice and help manufacturing companies choose the right direction.’

Paradox of AI and sustainability

In the paper, Ilse and Nick advocate for a value-based approach. This means that companies consider not only economic value but also sustainability, social impact, and the use of scarce resources.‘You can use AI tools to write emails, summarise reports or books, or analyse data,’ Hellemans explains. ‘But you also should ask yourself if you need such a heavy tool for every step in your process. Sometimes a simple solution, like consulting a colleague or using existing knowledge, is sufficient.’

A key message from the DaCapo project is that innovation and responsible use go hand in hand. Too much focus on responsible use can be paralysing, but blindly using AI without considering the impact is also not the solution.

Making conscious choices now

The world of AI is changing rapidly. What is not possible today may be possible in a few years. Oostervink: ‘We might soon have AI tools powered by wind energy. Then you will also want to have guidelines to deal with this. Currently, there is limited research on the full environmental impact of popular AI tools, let alone AI still in development. We don't have all the answers. And we know we must keep moving forward. We need to keep searching, collaborating, and acting.’

No perfect circular strategy

There is no perfect solution to the dilemma between innovation and sustainability. But the most important thing is that companies do not stall because it overwhelms them, says Hellemans: ‘In the short term, it is more important to encourage entrepreneurs to become more circular than to make that first step in using AI perfect. Many manufacturing companies still need to take the step towards circularity. They are not always considering whether they can use AI for this, let alone how to do it responsibly. The perfect circular strategy does not exist. It is more important to take the first steps, no matter how small and imperfect.’

Continue innovating, but consciously

Besides the paper, TNO's participation in the DaCapo project has yielded something else concrete: the Agile Methodology, which helps entrepreneurs navigate the vast amount of information to determine their circular strategy. Oostervink: ‘The application of popular AI tools is part of that methodology. Next year, we will delve into the technical aspects of developing a digital product passport and a decision support system to help entrepreneurs make the right choices.’

Meanwhile, it is important to continue the conversation about how technologies like generative AI can be used to accelerate the transition to a sustainable and digital society. TNO wants to show that responsible innovation is possible if you are willing to embrace complexity.