Nachhaltige AI 2035 Empowering SMEs to Tap Into Market Potential and Impact The rapid rise of Artificial Intelligence (AI) is the defining arena of the “twin transition” towards a sustainable and digital future. While AI holds extraordinary potential to drive sustainable innovation, its own environmental footprint is significant. The Challenge for Information Technology (IT) SMEs Small and medium-sized enterprises (SMEs) of the IT sector are experts in digitalisation, but they often face significant barriers when it comes to sustainability transformation. Many lack specific sustainability expertise and a clear overview of future trends, leading them to view sustainability as a regulatory burden rather than an innovation opportunity. Furthermore, in an AI landscape dominated by Big Tech, SMEs often feel marginalised. Operating primarily in a reactive “service provider” role, they struggle to identify their unique scope to actively shape sustainable solutions. Our Approach: From Market Analysis to Agenda Setting As a non-profit Think and Do tank, the CSCP works to overcome such barriers. Building on years of work in aligning digitalisation with sustainability goals, the Nachhaltige AI 2035 project helps IT SMEs shift from reacting to actively shaping the future. The project addresses a central question: How can medium-sized IT companies strategically develop and use AI to tap into the market potential of the sustainable transformation? To answer this, the project applies a pragmatic, hands-on approach connecting CSCP Think and Do services: Markets & Trends Analysis: To understand how Sustainable AI (the sustainability of AI technologies themselves) and AI for Sustainability (the use of AI to achieve sustainability goals), we filter broad market studies and expert insights through the lens of IT SMEs. By combining targeted SWOT (strengths, weaknesses, opportunities, threats) analyses with collaborative Future Workshops, we identify specific market segments and trends up to 2035 where SMEs can play a decisive role. Co-Creating Innovation Roadmaps: We then take these insights into Practice Labs with a select group of IT pioneers. Through hands-on innovation workshops, we translate the identified market potentials into concrete, company-specific strategies. We look for the sweet spots where ecological impact and revenue generation align, exploring how SMEs can leverage their specific strengths to position themselves successfully alongside large market players. Together, we map out actionable Innovation Roadmaps. Capacity Building and Agenda Setting: To share our findings beyond the pilot companies, we translate our lab results into open-source toolkits, guidelines, and capacity-building formats tailored to the wider SME landscape. Furthermore, through multi-stakeholder dialogues, we channel this real-world evidence into practical recommendations for policymakers and industry leaders, contributing to market conditions that actively reward sustainable innovation. The Sustainable AI2035 project is a collaboration between the CSCP and the German Association of IT-SMEs (BITMi) und finanziert von der Deutsche Bundesstiftung Umwelt (DBU).