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

Zain KSA partner with Monsha’at to empower Saudi SMEs
News
Calendar Icon
July 5, 2026
Zain KSA partner with Monsha’at to empower Saudi SMEs
Read More
e&, Lenovo Connect team up to expand connected mobility across GCC
News
Calendar Icon
July 5, 2026
e&, Lenovo Connect team up to expand connected mobility across GCC
Read More
BARQ Systems, ServiceNow to accelerate digital transformation, enterprise automation
News
Calendar Icon
July 5, 2026
BARQ Systems, ServiceNow to accelerate digital transformation, enterprise automation
Read More
Saudi non-oil private sector grows in June, PMI rises to 53.3
News
Calendar Icon
July 5, 2026
Saudi non-oil private sector grows in June, PMI rises to 53.3
Read More
Saudi Arabia attracts SAR 20 bn in foreign private capital in 2025
News
Calendar Icon
July 5, 2026
Saudi Arabia attracts SAR 20 bn in foreign private capital in 2025
Read More
Magna AI, Naver Innovation partner to advance Saudi sovereign AI
News
Calendar Icon
July 5, 2026
Magna AI, Naver Innovation partner to advance Saudi sovereign AI
Read More
HITEK AI launches GCC’s 1st AI-powered asset management solution
News
Calendar Icon
July 1, 2026
HITEK AI launches GCC’s 1st AI-powered asset management solution
Read More
Jisr joins hands with Tamam to enhance employees' financial experience
News
Calendar Icon
July 1, 2026
Jisr joins hands with Tamam to enhance employees' financial experience
Read More
Magna AI, Saudi Xerox partner to advance sovereign AI in Saudi Arabia
News
Calendar Icon
July 1, 2026
Magna AI, Saudi Xerox partner to advance sovereign AI in Saudi Arabia
Read More
Khalifa Fund launches 2026 Young Entrepreneurship Program
News
Calendar Icon
July 1, 2026
Khalifa Fund launches 2026 Young Entrepreneurship Program
Read More