Salesforce Pitches Environmental Regulation for AI Applications; Good or Bad for ClimateTech Startups?

Cloud application provider Salesforce has unveiled Sustainable AI Policy Principles, a "framework aimed at guiding AI regulation to minimize environmental impact and spur climate innovation."

Read between the lines, and Salesforce is "pushing for more environmental regulation of artificial intelligence, highlighting concerns about energy use and a lack of emissions disclosure within the technology sector," The Wall Street Journal said.

AI Applications Demand More and More Energy

To be sure, businesses across multiple vertical markets -- including software companies, data center providers and energy utilities -- are concerned about skyrocketing energy use tied to generative AI applications.

Moreover, U.S. electrical systems are not expanding fast enough to meet rapidly growing power needs of technology like Generative AI, prompting data center businesses to sometimes bypass utilities, Reuters reported.

Still, Salesforce's call for AI regulations has potential pros and cons for partners, customers, entrenched IT giants and startups. For instance:

• On the upside: Some form of regulation or government guidance could help to ensure AI applications leverage energy-efficient designs, renewable energy sources and carbon reduction commitments.
• On the downside: Some critics believe regulations essentially protect large, well-funded businesses that can afford to navigate government mandates -- while also stifling innovation and triggering financial challenges for startups that want to enter the AI market.

Salesforce AI Partnerships, Net Zero Cloud Ecosystem

For its part, Salesforce appears committed to AI innovations that address climate needs. One prime example: The company has selected five nonprofit organizations -- including Climate Collective Foundation, Good360, Groundswell, Ocean Risk and Resilience Action Alliance (ORRAA) and WattTime -- to participate in AI for Impact, an accelerator that focuses on climate action. 

Meanwhile, portions of the Salesforce partner ecosystem are expanding their sustainability consulting, managed services and associated software capabilities. For instance:

• March 2024 - MSP Services: Mitie, a facilities management and professional services company, has plugged into Salesforce Net Zero Cloud to launch a managed carbon reporting and reduction service.
• March 2024 - M&A: ERM, which positions itself as the world's largest sustainability consultancy, acquired The Big Middle and The Big Zero -- two enterprise systems integrators that partner closely with Salesforce Net Zero Cloud.
• May 2023 - Implementation Services: Xebia, a software engineering and IT consultancy company, become the first Salesforce Net Zero Cloud implementation partner in India, and plans to "help businesses accelerate their sustainability goals."
• March 2023 - Partnership: ERM partnered with the Salesforce Net Zero Cloud team to blend consulting and cloud services.

Salesforce Dreamforce 2024 Conference: More Net Zero Cloud News?

So what's next? Keep an eye on the Salesforce Dreamforce 2024 conference, which is scheduled for September in San Francisco.

Much of Salesforce Dreamforce focuses on artificial intelligence and SaaS applications. But take a closer look and you'll likely find content involving Salesforce Net Zero Cloud and related sustainability topics.