Empirical analysis shows AI reduces energy intensity, indicating digital economy enhances its effectiveness.
As artificial intelligence (AI) boosts productivity, the global climate crisis worsens, prompting widespread concern about AI's potential to aggravate energy issues. This paper utilizes industrial robot data and national panel data to empirically assess the AI's influence on energy intensity and to investigate its underlying mechanisms, with additional focus on the moderating role and threshold effect of the digital economy. The results indicate that AI greatly reduces energy intensity overall. Specifically, AI proves to be more potent in boosting energy efficiency in nations with elevated energy intensity. Moreover, AI's capacity for energy optimization is markedly pronounced in Europe & Central Asia, non-G20 countries, and energy-abundant countries. Mechanistically, AI influences energy intensity primarily through promoting energy transitions and technological advancements. Extended analysis reveals that the digital economy notably curbs energy intensity and effectively moderates the link between AI and energy intensity. When the digital economy reaches a higher threshold level, the effect of artificial intelligence in reducing energy intensity becomes more pronounced. This research provides theoretical support and policy recommendations for leveraging AI in energy conservation and emissions reduction, while also offering new perspectives for digital economy studies.
No takes yet. Share an insight, caveat, or question.
Mo et al. (2025) studied this question.