Eco-Innovation and Regulation : Evaluating the Impact of AI Policies on the Ecological Footprint of the IT Sector

This thesis explores how eco-innovation practices and regulatory frameworks intersect. It specifically looks at how AI policies affect the ecological footprint of the IT sector. It delves into how AI technologies impact environmental sustainability and evaluates how EU AI policies address ecological risks while enhancing sustainability opportunities. Applying Ecological Modernization Theory, this study reveals how AI can worsen or improve certain environmental issues like energy use, e-waste, and resource-heavy production. The analysis focuses on policies such as the European AI Act and the Digital Europe Program to assess how they promote renewable energy, enhance efficiency, and encourage sustainable practices in the IT industry. This research uses qualitative content analysis of recent EU policy documents and industry reports, in addition to scenario analysis, to predict potential outcomes. The results indicate that carefully crafted AI policies are vital in greatly improving environmental sustainability in the IT sector, aligning technology advancements with ecological conservation. Suggestions comprise strengthening regulatory frameworks, introducing better monitoring and reporting standards, and encouraging the adoption of sustainable AI approaches. This thesis adds to the discussion on integrating sustainable technology, providing guidance to policymakers and industry stakeholders on harmonizing AI-driven advancements with environmental protection.