Report: Organizations face growing challenge of AI’s environmental impact

user icon
GHADA.ISMAIL
calender icon
Jan 20, 2025
article image

Cairo – Sharikat Mubasher: As generative AI adoption rises, a report by the Capgemini Research Institute reveals its significant environmental impact. While nearly half of executives acknowledge increased emissions from AI use, few organizations actively measure or address the issue, raising questions about the technology’s sustainability in the face of growing climate goals.

The Capgemini Research Institute’s report namely, Developing Sustainable Gen AI, highlights the significant environmental impact of generative AI (Gen AI) as its adoption accelerates.

Nearly half of executives surveyed believe their Gen AI use has increased greenhouse gas (GHG) emissions, with emissions expected to double as a share of organizational carbon footprints within two years.

Despite this, sustainability remains a low priority for many businesses, with only 12% tracking their Gen AI carbon footprint and more than half prioritizing efficiency and cost over environmental concerns.

Transparency from AI providers is also lacking, making it harder for organizations to measure and mitigate emissions.

Some companies are taking steps to reduce Gen AI’s impact by using smaller models and renewable energy, but broader collaboration and industry-wide standards are needed. Gen AI also shows promise in supporting sustainability initiatives, such as ESG reporting and material optimization, though its full potential depends on responsible implementation.

Capgemini calls for businesses to evaluate the necessity of energy-intensive AI projects, integrate sustainable practices throughout AI lifecycles, and establish governance models to ensure ethical and transparent use. As Cyril Garcia, Capgemini’s Head of Global Sustainability, notes: “Generative AI can accelerate business and sustainability goals, but its environmental costs must not be ignored.”

The report urges organizations to align Gen AI strategies with environmental goals to achieve a greener, more ethical digital future.


Share

Related News

Fintech Galaxy gets IPA from CBUAE to operate as Open Finance provider
News
Calendar Icon
August 20, 2026
Fintech Galaxy gets IPA from CBUAE to operate as Open Finance provider
Read More
Aramco’s Prosperity7 Ventures invests in Velaura AI’s $110mn Series A round
News
Calendar Icon
August 20, 2026
Aramco’s Prosperity7 Ventures invests in Velaura AI’s $110mn Series A round
Read More
HUMAIN unveils AI PC developed with Qualcomm
News
Calendar Icon
August 20, 2026
HUMAIN unveils AI PC developed with Qualcomm
Read More
Ajman Bank, Numou partner to expand Shari’ah-compliant SME financing
News
Calendar Icon
August 20, 2026
Ajman Bank, Numou partner to expand Shari’ah-compliant SME financing
Read More
Saudi Azm integrates 5 AI agents into its workforce
News
Calendar Icon
August 19, 2026
Saudi Azm integrates 5 AI agents into its workforce
Read More
Forbes Middle East announces Healthcare Leaders Summit Riyadh 2026
News
Calendar Icon
August 19, 2026
Forbes Middle East announces Healthcare Leaders Summit Riyadh 2026
Read More
Najm, Solera partner to accelerate AI-powered claims transformation in Kingdom
News
Calendar Icon
August 19, 2026
Najm, Solera partner to accelerate AI-powered claims transformation in Kingdom
Read More
BENEFIT launched ‘Digital Direct Debit’ service to advance lending in Bahrain
News
Calendar Icon
August 19, 2026
BENEFIT launched ‘Digital Direct Debit’ service to advance lending in Bahrain
Read More
Dubai Chambers partners with Trendyol to support SMEs
News
Calendar Icon
August 19, 2026
Dubai Chambers partners with Trendyol to support SMEs
Read More
BinDawood acquires 51% stake in Wonder Bakery for AED 114 mn
News
Calendar Icon
August 19, 2026
BinDawood acquires 51% stake in Wonder Bakery for AED 114 mn
Read More