Artificial intelligence has a crucial role to play in the pursuit of net-zero emissions, but it cannot do it by itself until new technologies to expand sources of energy come onstream to meet growing demand.
A senior manager at oil company Shell joined innovators and futurists at the CogX Festival in London in sketching out the effects of AI on the energy revolution.
“AI and digital have a really fundamental role to play in the energy transition,” said Amy Challen, general manager for artificial intelligence at Shell.
“AI is not the answer. The answer is physical and chemical technologies and a massive shift in the way we do things. But AI is a massive enabler.”
Caroline Cochran, the chief operating officer of Oklo, a company developing advanced fission nuclear power plants, agrees that AI can and will help on the road to net zero as strides are being made in other areas as well.
“There’s technologies that already exist, it’s just a question of deploying them,” Ms Cochran said.
Jack Hidary, chief executive of SandboxAQ, said AI technology was only a taste of the progress that quantum mechanics would bring.
Mr Hidary said the technology underlying the exploitation of large language models could be used for simulation of proteins, not just computer bits.
He gave two examples on the cusp of change: drug testing for new treatments; and battery technology to service individual homes.
“Every single molecule designed to be a drug will go through simulation in this computing revolution, which will speed up design, drop the costs and most importantly, increase the chances of success in a real clinical trial," Mr Hidary said.
"When we think about batteries – not just electric vehicles but buildings like your home, offices like your home – we need batteries in every single one of them to draw on the clean energy such as solar or wind, store it and use it 24 hours, turning solar, for example, from an intermittent source to a baseload energy source.
“Now with these tools of simulation and AI we can have this next revolution.
"We can understand different elements to create alternative battery technologies, aluminium-based batteries, zinc-based batteries and other chemistries."
CogX Festival in London - in pictures
Ms Challen said Shell was able to use AI far more today than just a few years ago.
“We’re much better than we were five years ago,” she told the CogX Festival.
“We’ve got over a hundred AI-powered applications in development and deployment.
"We’ve got over four trillion rows of sensor data in the data lake and this number goes up every month, and we’ve got over 17,000 pieces of equipment being monitored in our predicting maintenance programme.”
Technology could yet provide the means of harvesting solar power from space, according to Pablos Holman, a general partner in Deep Future and former executive at the Jeff Bezos-backed space venture Blue Origin.
“Solar panels in space will get eight times as much energy and you beam it down to Earth through radio waves,” Mr Holman said.
“In this decade, doing solar in space will become the lowest-cost baseload energy anywhere on earth.
“You don’t need storage, you don’t need transmission lines and its coming to you carbon-free.”
But that is not to say the development of AI that accelerates the process to net zero is without its challenges.
“Anyone can do proof of concept and get very excited about it, but it can be really hard to actually realise value," Ms Challen said.
“We need process changes. Unless you actually embed what you’re doing and change the way someone is doing a particular process, it’s not going to go anywhere.
“You need technology that scales – if you try and do it in a local development environment, you’re not going to go anywhere.”
“The landscape is getting more and more complex and with generative AI we see some risks being introduced with that, just because of people’s naivety about these tools and about what they can do.”
Nonetheless, Ms Challen said that Shell supports the concept of open-source software in AI.
“We actually have open sourced some of our own products," she said. "We’re also a strong believer in using open-source components in many of the models we build.”
The processing of enormous amounts of data for AI is a much more energy-intensive process than its predecessor and leading figures in the industry are now backing ventures to deliver that power.
Sam Altman, chief executive of OpenAI, has emerged as a backer of nuclear fission as the chairman of Oklo as it seeks to build small nuclear reactors.
Ms Cochran, a co-founder of Oklo, told CogX its reactors are going to be much smaller and designed to reuse existing nuclear fuel.
“We can make small power plants that have inherent safety characteristics and you can even use nuclear waste as fuel," she said.
“You need a tonne of energy for AI. We talk to the data centres who are making huge commitments in terms of decarbonising.
"They are looking for energy supplies. They are being told by utilities in those areas you can’t build here unless you bring your own power.
"We have small power plants that can run 24/7, which is important.
"They need a clean energy source that can do that 24/7 and there’s really not much other than nuclear that can do it.”
Results
2pm: Maiden (TB) Dh60,000 (Dirt) 1,200m, Winner: Mouheeb, Tom Marquand (jockey), Nicholas Bachalard (trainer)
2.30pm: Handicap (TB) Dh68,000 (D) 1,200m, Winner: Honourable Justice, Royston Ffrench, Salem bin Ghadayer
3pm: Handicap (TB) Dh84,000 (D) 1,200m, Winner: Dahawi, Antonio Fresu, Musabah Al Muhairi
3.30pm: Conditions (TB) Dh100,000 (D) 1,200m, Winner: Dark Silver, Fernando Jara, Ahmad bin Harmash
4pm: Maiden (TB) Dh60,000 (D) 1,600m, Winner: Dark Of Night. Antonio Fresu, Al Muhairi.
4.30pm: Handicap (TB) Dh68,000 (D) 1,600m, Winner: Habah, Pat Dobbs, Doug Watson
The biog
Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
'The Predator'
Dir: Shane Black
Starring: Olivia Munn, Boyd Holbrook, Keegan-Michael Key
Two and a half stars
Results
2pm Handicap (PA) Dh85,000 1,800m
Winner AF Al Baher, Tadhg O’Shea (jockey), Ernst Oertel (trainer).
2.30pm Maiden (TB) Dh75,000 1,400m
Winner Alla Mahlak, Fabrice Veron, Rashed Bouresly.
3pm Handicap (TB) Dh80,000 1,400m
Winner Davy Lamp, Adrie de Vries, Rashed Bouresly.
3.30pm Handicap (TB) Dh105,000 1,400m
Winner Ode To Autumn, Richard Mullen, Satish Seemar.
4pm Handicap (TB) Dh80,000 1,950m
Winner Arch Gold, Pat Dobbs, Doug Watson.
4.30pm Maiden (TB) Dh75,000 1,800m
Winner Meqdam, Pat Dobbs, Doug Watson.
5pm Handicap (TB) Dh90,000 1,800m
Winner Native Appeal, Sam Hitchcott, Doug Watson.
5.30pm Maiden (TB) Dh75,000 1,400m
Winner Amani Pico, Tadhg O’Shea, Satish Seemar
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Warlight,
Michael Ondaatje, Knopf