Digital Transformation, AI, and Climate Risk

How AI is reshaping Finance & Operations Across Industries

Business leaders today face a dual imperative of adapting to rapid technological change while responding to escalating climate risks. According to a recent CEO survey, 45% of CEOs fear their companies won’t survive the next decade without significant reinvention amid climate disruption and advancements in AI.​

These twin forces are no longer abstract future concerns – they are driving fundamental shifts in how organizations manage their finances and operations across virtually every industry. Surviving and thriving in this environment requires viewing transformation as a continuous journey, not a one-off project​.

All sectors are feeling the effects of these trends, but some face especially intense disruption or risk from the combined force of AI and climate change. Below we highlight several broad sectors and how they are being impacted, both globally and in Australia.

Energy & Utilities

Manufacturing & Heavy Industry

Financial Services

Agriculture & Food

Transportation & Supply Chain

Not for profits

Healthcare

Property

The impact of digital transformation on finance and operations is profound and accelerating. Artificial intelligence is enabling companies to analyze and automate in ways unimaginable a decade ago, from real-time risk assessment in finance to self-optimizing supply chains in operations. Meanwhile, climate risk has emerged as a defining strategic challenge that no business can ignore – it is rewriting risk management, regulatory compliance, and stakeholder expectations across sectors. The examples above show that these forces often act in tandem: AI and digital tools are essential to manage climate risks and meet sustainability goals, and the urgency of climate change is spurring further digital innovation.

Industries such as energy, financial services, manufacturing, and agriculture are at the forefront of this upheaval, especially in a country like Australia where both climate impacts and tech adoption are pronounced. These sectors are reinventing themselves – pivoting business models, investing in new capabilities, and in many cases collaborating with government and tech partners – to build more efficient, resilient, and sustainable operations. The journey is not without challenges. Companies must manage the downsides of AI (like cybersecurity and ethical considerations) and ensure a just transition for their workforce as automation changes job profiles. They must also navigate the uncertainties of climate science and policy. But what’s clear is that standing still is not an option.

As one business professor put it, “the ability to embrace change and take advantage of it will determine the winners and losers of the 21st century”​