Businesses May Prioritize Sustainability Over AI Development

Companies Are Scaling Back Sustainability Commitments to Realize AI Benefits

Businesses are more likely to scale back their sustainability commitments rather than miss out on the benefits of generative artificial intelligence (AI), according to a new report from Capgemini. The report highlights that 47% of organizations implementing AI across most or all functions have had to re-examine their original environmental goals.

AI’s Environmental Impact

Google’s recent environmental report revealed a 48% increase in emissions over four years, largely due to the expansion of its data centers to support AI development. The company’s goal to reach net-zero emissions across its operations and value chain by 2030 is now considered “extremely ambitious” and will require significant uncertainty.

Generative AI Demands a Substantial Amount of Energy and Water

Generative AI has an aggressive environmental impact. The graphics processing units central to the technology’s operation require rare Earth metals that must be mined, releasing greenhouse gases. The hardware behind it also requires frequent upgrades, which could generate up to five million tonnes of e-waste by 2030.

Data centers will be responsible for up to 4% of global power demand by 2030, driven in part by AI. Training OpenAI’s GPT-4, with 1.76 trillion parameters, consumed an amount of energy equivalent to the annual power usage of five thousand U.S. households. This does not include the electricity required for inference, where the AI generates outputs based on new data.

Running an inference of between 10 and 50 queries on a large language model uses about 500 ml of water. The E.U. aims to reduce its 2030 greenhouse gas emissions to at least 11.7% lower than projected at the start of the decade. However, demand for bit barns in Europe is predicted to triple in that time, increasing their share of the region’s total energy demand by 3% and pushing that goal out of reach.

Businesses May Not Know or Care About the Emissions Attached to their AI Usage

Many businesses use AI now, with 80% having increased their investment in it since 2023, according to Capgemini. Nearly a quarter are now integrating generative AI into some or most of their locations or functions, up from 6% in 2023.

However, awareness of AI’s electricity and water demands is patchy. Only 38% of executives surveyed claim to be aware of the environmental impact of the GenAI they use, and 12% say their company measures its footprint.

Conclusion

The report highlights the need for businesses to prioritize sustainability alongside AI development. As AI becomes increasingly integrated into daily operations, it is crucial for organizations to monitor and mitigate their environmental impact. By doing so, they can ensure a more sustainable future for all stakeholders.

FAQs

Q: What is generative AI?
A: Generative AI refers to a type of artificial intelligence that uses machine learning algorithms to generate new content, such as text, images, or music.

Q: What is the environmental impact of AI?
A: AI has an aggressive environmental impact, requiring rare Earth metals, frequent upgrades, and generating e-waste. Data centers will be responsible for up to 4% of global power demand by 2030.

Q: Why are businesses scaling back sustainability commitments?
A: Businesses are prioritizing AI development over sustainability commitments, as 47% have had to re-examine their original environmental goals due to the demands of AI implementation.

Q: What is the goal of the E.U. for reducing greenhouse gas emissions?
A: The E.U. aims to reduce its 2030 greenhouse gas emissions to at least 11.7% lower than projected at the start of the decade.

Q: What percentage of organizations are integrating generative AI into their operations?
A: Nearly a quarter of organizations are now integrating generative AI into some or most of their locations or functions, up from 6% in 2023.

Q: What percentage of executives are aware of the environmental impact of the GenAI they use?
A: Only 38% of executives surveyed claim to be aware of the environmental impact of the GenAI they use.

Q: What percentage of data center owners and operators track metrics like renewable energy consumption and water usage?
A: Fewer than half of data center owners and operators track these metrics.