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

Elm partners with Huawei to strengthen Asia-GCC technology corridor
News
Calendar Icon
July 9, 2026
Elm partners with Huawei to strengthen Asia-GCC technology corridor
Read More
HUMAIN pacts with Cohere to develop AI compute, sovereign models
News
Calendar Icon
July 9, 2026
HUMAIN pacts with Cohere to develop AI compute, sovereign models
Read More
Dubai Chambers, Wio Bank partner to empower SMEs with innovative banking services
News
Calendar Icon
July 9, 2026
Dubai Chambers, Wio Bank partner to empower SMEs with innovative banking services
Read More
SAL, flyadeal partner to scale Saudi talent through specialized training programs
News
Calendar Icon
July 9, 2026
SAL, flyadeal partner to scale Saudi talent through specialized training programs
Read More
Alswaha: digital economy in Saudi Arabia rises by 75% to hit $139bn
News
Calendar Icon
July 9, 2026
Alswaha: digital economy in Saudi Arabia rises by 75% to hit $139bn
Read More
Planno secures strategic investment from Incubayt to accelerate global expansion
News
Calendar Icon
July 9, 2026
Planno secures strategic investment from Incubayt to accelerate global expansion
Read More
Lahint unveils infrastructure to automate government services for businesses
News
Calendar Icon
July 9, 2026
Lahint unveils infrastructure to automate government services for businesses
Read More
Najashi Holding, Y-Innovation Group launch $500mn Saudi biotech initiative
News
Calendar Icon
July 9, 2026
Najashi Holding, Y-Innovation Group launch $500mn Saudi biotech initiative
Read More
Deutsche Bank expands Middle East presence with Riyadh RHQ
News
Calendar Icon
July 8, 2026
Deutsche Bank expands Middle East presence with Riyadh RHQ
Read More
Nutanix: AI adoption accelerates across Saudi Arabia's enterprise sector
News
Calendar Icon
July 8, 2026
Nutanix: AI adoption accelerates across Saudi Arabia's enterprise sector
Read More