NobleAI study finds only 8% of R&D budgets target sustainability despite strong executive support.
SAN FRANCISCO, Dec. 12, 2024 /PRNewswire-PRWeb/ -- NobleAI, a pioneer in Science-Based AI solutions for Materials Informatics, today released results of a commissioned survey. The survey explores corporate plans to address environmental and sustainability concerns amid rising public awareness and stricter regulations demanding safer chemicals. Specifically, the study sought to understand strategic priorities for product development in relationship to sustainability initiatives and the role artificial intelligence could play in those priorities. The results reflect the opinions of more than 200 executives in industries including agriculture, consumer products, chemicals, energy, textiles, and environmental services. It was conducted in September 2024 by Strop Insights.
The pressure on companies to innovate and meet emerging market preferences while staying compliant with regulations is greater than ever, and artificial intelligence has become essential for companies to keep pace with these demands. Yet a 2023 Lux Research study entitled The Next Era of Chemicals Innovation found that 71% of enterprises have yet to determine if sustainability-focused innovation is essential, strategically viable, or a financial risk.
The NobleAI survey explored the situation, with a focus on identifying strategic priorities and challenges, plans for investments, and the state of AI within product development around sustainability and compliance.
The findings reflect a market where aspirations and actions relating to sustainability are not yet aligned. Specifically:
- 92% of C-level executives surveyed cited sustainability is a top priority. However, that prioritization decreases among executives below the C-suite.
- The top five motivations for why companies would pursue sustainability were ranked as: regulatory compliance, competitive advantage, cost savings and efficiency, innovations and technological advancement, and customer centric demands.
- Despite the above two responses, the average amount of R&D budget devoted to sustainability solutions was reported as only 8%.
- Top five sustainability goals are, in order: waste reduction, regulatory compliance, energy efficiency, sustainable sourcing and production, and carbon footprint reduction.
- Eliminating forever chemicals not cited as a top priority.
"The results of this survey revealed a very real gap between stated corporate goals and a willingness to fund sustainability initiatives," said Sunil Sanghavi, CEO of NobleAI. "While the intent of corporate leadership may be genuine, these results show that pressures to manage costs and demonstrate profitability are severely impacting corporate action on sustainability. We believe Science-based AI can help such companies avoid either/or trade-offs."
"I've seen firsthand how companies struggle to balance ambitious sustainability goals with the pressures of profitability and compliance," said Danielle Azoulay, Founder of The CSO Shop, ex-Head of Sustainability at Bed Bath and Beyond and L'Oreal USA."The sustainability insights from NobleAI's survey highlight the challenges companies are having in bridging this gap, while also illuminating how companies are exploring AI to help businesses make smarter, faster decisions that align with both environmental priorities and bottom-line objectives."
Respondents in the survey worked in roles primarily in R&D, Product Development and Data Science and, regardless of the role, were directly involved in decision-making in their organization's product development or R&D process. For details on the sustainability findings, please see NobleAI Sustainability Study.
About NobleAI
NobleAI offers commercially-proven AI solutions for Material Informatics powered by its unique, Science-Based AI (SBAI) technology. Science-Based AI models are developed quickly, securely and specifically for each customer and a specific use case. Delivered via the cloud-based Noble Visualizations, Insights, & Predictions (VIP) Platform, NobleAI's SBAI technology delivers actionable insights to accelerate product development and reduce costs while improving product performance, sustainability, and reliability. NobleAI is supported by investments from world-class organizations such as Microsoft, Chevron and Syensqo, and the company's solutions are already delivering real value in production deployments at leading chemical, material and energy companies around the globe.
Media Contact
Laurie Gibson, NobleAI, (650) 815-1438, [email protected], www.noble.ai
SOURCE NobleAI
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