1Managing the planet’s most vital systems ‒ energy, water, and waste ‒ has never been more complex. Growing demand, stricter environmental standards, climate disruptions, scarcity of natural resources, and the interdependence of these systems are creating challenges that strain traditional approaches and expose their limits. Artificial Intelligence (AI) offers new ways to navigate this complexity, enabling more accurate forecasting, system optimization, and faster development and deployment of solutions at a scale once unimaginable.

2AI is evolving at extraordinary speed, and its implications for sustainability ‒ both positive and negative ‒ are still unfolding. As with any powerful new technology, its development and deployment raise complex questions including the sustainability implications of AI’s own energy and water use. To keep pace with AI’s opportunities and challenges, we must continuously learn through practice, analysis, and cross-sector knowledge sharing.

3This report is part of our learning journey. Jointly produced by the Veolia Institute and Microsoft, it brings together perspectives from scholars and practitioners around the world to examine how AI is being applied to manage energy, water, and waste ‒ what we collectively refer to as “environmental services” ‒ and what it takes to deploy these solutions at scale. The essays examine real-world use cases, the opportunities that AI technologies unlock, and the challenges that responsible AI deployment must consider, from technical readiness to governance, resources, and equity.

4The essays expand on Microsoft’s AI and Sustainability Playbook’s five priorities for accelerating AI’s positive impact on sustainability:

1. Invest in AI to accelerate sustainability solutions

2. Develop digital and data infrastructure for the inclusive use of AI for sustainability

3. Minimize resource use, expand access to carbon-free electricity, and support local communities

4. Advance AI policy principles and governance for sustainability

5. Build workforce capacity to use AI for sustainability

5Across these priorities, several themes emerge:

6Challenges, tradeoffs, and uncertainty. AI offers immense potential to accelerate sustainable solutions, but it also introduces risks that must be carefully managed. Navigating these tradeoffs is essential to help ensure benefits outweigh unintended consequences. Continuous evaluation and adaptation will be key as technologies evolve and new challenges arise.

7Governance, policy, and guardrails. Strong governance frameworks rooted in shared priorities are critical to ensure AI supports sustainability goals in managing energy, water, and waste. This requires collaboration across industries, sectors, and regions. Global cooperation is needed to help incorporate diverse perspectives and establish standards and accountability for ethical, responsible AI use.

8Equity and inclusion. Equity and inclusion must guide AI development to avoid harming marginalized communities, prevent widening the digital divide, and ensure its benefits advance sustainability broadly. Fair access to resources and data is vital for inclusive progress. Local context should shape implementation, so solutions reflect community needs and promote equitable practices worldwide.

9Trust, transparency, and responsibility. Building trust in AI for sustainability depends on openness and collaboration. Democratization and interoperability must be embedded into AI solutions to foster shared progress. Transparency and reporting are essential for establishing trust and accountability. Building sustainability principles into AI design and deployment will help reinforce responsible innovation.

10Technical and infrastructure readiness. The success of AI in advancing sustainability goals hinges on robust infrastructure, reliable data access, and widespread connectivity. Developing workforce skills to build and deploy AI for sustainability is equally important. Innovation ecosystems that connect research, industry, and policy will help to accelerate AI progress and ensure that technical readiness supports sustainable outcomes.

11These are complex, fast-moving issues, and no single institution or sector can solve them alone. Through this collaboration, Veolia and Microsoft aim to learn from experts around the world what it will take to responsibly harness AI for smarter, more efficient, more sustainable, and more resilient energy, water, and waste management. By connecting research, industry, and policy, we hope this report helps advance understanding and guide innovation toward a more sustainable future.