The global AI in environmental sustainability market size is anticipated to reach USD 84.03 billion by 2033 and is expected to expand at a CAGR of 19.8% during the forecast period, according to a new report by Grand View Research, Inc. A convergence of technological innovation, regulatory momentum, and urgent ecological challenges is driving the market.

As climate change intensifies and resource scarcity becomes more pronounced, governments and industries turn to artificial intelligence to monitor, manage, and mitigate environmental impacts. AI-powered systems are being deployed to optimize energy consumption, predict and reduce emissions, and enhance the efficiency of waste management and water conservation efforts. These intelligent solutions offer real-time insights and predictive capabilities that traditional methods cannot match, making them indispensable tools in the global push for sustainability.

Another major driver is the increasing integration of AI with emerging technologies such as IoT, satellite imaging, and sensor networks. This fusion enables more granular and dynamic environmental monitoring, from tracking deforestation and biodiversity loss to forecasting air and water quality. Urban planners and policymakers are leveraging these capabilities to design smarter cities that adapt to environmental stressors. In agriculture, AI is revolutionizing sustainable farming practices by enabling precision irrigation, crop health diagnostics, and yield optimization all while minimizing ecological footprints.

Furthermore, the rise of sustainability-focused regulations and corporate ESG commitments is accelerating AI adoption across sectors. Companies are under growing pressure to demonstrate environmental accountability, and AI offers scalable, data-driven solutions to meet these expectations. From automated carbon tracking to AI-driven climate modeling, businesses embed intelligent systems into their operations to align with global sustainability goals. As public awareness and investor interest in green technologies continue to rise, AI is poised to play a central role in shaping a more resilient and environmentally responsible future.

Further key findings from the report suggest:

• By application, climate change mitigation led the market and held the largest revenue share of 28.0% in 2024.
• By technology, the machine learning segment held the dominant position in the market and accounted for the largest revenue share of 36.2% in 2024.
• By end use, the energy & utilities sector is expected to grow at the fastest CAGR of 21.2% from 2025 to 2033.
• North America AI in environmental sustainability dominated the global market with the largest revenue share of 38.4 % in 2024.
• The AI in environmental sustainability market in the U.S. led the North American market and held the largest revenue share in 2024.

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