The development of artificial intelligence (AI) and pursuit of environmental progress have been typically positioned at odds.
A Toronto-based organization that's bringing together researchers, investors, and startups to scale AI for the clean economy disagrees. And so far, it has tracked US$63 billion in third-party investments and more than 1,500 ventures since 2020 to prove it.
“Applying AI to real-world, physical systems represents a still largely untapped opportunity to drive measurable impact in energy, food, water and urbanization," said Nicholas Parker, Founder of the CleanAI Initiative.
Launched in 2024, the CleanAI Initiative focuses on advancing AI solutions that support the clean economy.
Much of the debate surrounding AI and environmental progress has been focused on the energy demands of advanced AI systems. The CleanAI Initiative argues AI can actually be used to advance sustainability by working to manage electricity grids and reduce CO2 emissions.
Working to support progress
As the momentum for AI-enabled climate solutions grows, TD is the first Canadian bank to join the initiative.
“Through the CleanAI Initiative, we get early visibility on emerging AI solutions that create positive economic and sustainability outcomes,” said Murat Basarir, Associate Vice President, Enterprise Sustainable Finance at TD.
“Collaborating with innovators means TD can help scale promising technologies that will enable us to deepen client relationships.”
TD marked the start of its collaboration with the CleanAI Initiative during the Prospectors & Developers Association of Canada Convention, the world's largest mining conference. At the event, industry leaders discussed how AI is transforming mineral exploration and strengthening the critical minerals ecosystem.
The Bank's engagement with the CleanAI Initiative is another example of how it is building out its AI ecosystem and supporting early-stage ventures. TD has strategically assembled a network of AI startups, research institutions, venture capitalists, and universities that it is working with to advance AI at the Bank and in Canada.
Supporting AI startups
In 2016, TD became the first Canadian bank to join Plug and Play, a Silicon Valley-based accelerator for fintech, AI, and other tech startups. Twice a year, TD works with startups identified through the program and provides mentorship and business development support to help them build early prototypes.
The Bank continued to build out its AI ecosystem and support early-stage businesses in 2019 when it invested in Radical Ventures, a venture capital firm founded by Jordan Jacobs, one of the co-founders of Layer 6.
Radical invests in early-stage companies that are applying deep tech, such as AI, to transform their industries. By investing in these companies early on, Radical aims to support their development and keep them in Canada to build a homegrown AI sector.
Through Radical, TD not only invests in these companies but mentors their leaders. TD executives regularly meet with young AI entrepreneurs through Radical, where they have the opportunity to assess their technology, provide guidance and determine if there's an opportunity to work closer together.
More recently, TD launched TD Innovation Partners to take its support of early-stage ventures to another level and offer tailored banking, lending, and investment solutions for entrepreneurs, providing access to cross-border banking, venture debt, and private wealth management services.
Taylan Turan, Chief Operating Officer at TD, said the Bank's AI ecosystem is intentionally built to help advance its AI program, its interests in responsible and sustainable AI, and to keep its fingers on the pulse of innovation.
"We built an ecosystem to not only advance AI at TD but to have an impact across Canada," Turan said. "We're supporting promising early startups, helping to build the skills of the next generation of AI talent, participating in ground-breaking research, and advancing responsible and sustainable AI so that we can deliver refreshingly simple and remarkably human experiences for our clients and communities."
Want to learn more about Innovation?