Bridging Minds and Machines: Harnessing AI and Behavioral Nudging for Sustainable Resource Management

Bridging Minds and Machines: Harnessing AI and Behavioral Nudging for Sustainable Resource Management

Abstract: In today’s business environment, organizations face increasing pressure to manage resources efficiently while meeting financial, operational, and sustainability goals. This paper presents a novel integrative approach that combines AI-driven forecasting with behavioral interventions to help businesses optimize energy consumption under critical peak pricing (CPP) schemes, reduce costs, and align with sustainability initiatives. In partnership with En-Pro, an energy consulting firm, we conducted a multi-phase longitudinal study with large organizational clients, leveraging neural network time series modeling to improve peak energy demand predictions and behaviorally informed communications leveraging planning prompts to enhance compliance with curtailment recommendations. The results demonstrate significant financial savings, improved operational efficiency, and reduced environmental impact, benefiting clients, regulators, service providers, and society. We contribute to previous research on resource management, systems thinking, and nudging in an organizational context by aligning technological tools with human processes. This work offers a practical, business-oriented solution to real-world challenges, creating value for multiple stakeholders and positioning firms for long-term success in an increasingly resource-constrained world.

Key words: Artificial Intelligence, Behavioral Nudging, Sustainability, Dynamic Pricing, Critical Peak Pricing, Electricity Consumption

More information on Dr. Christopher Amaral can be found here.

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