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

Derayah Financial to invest $65mn in HOF Capital Strategic Opportunities Fund II
News
Calendar Icon
August 30, 2026
Derayah Financial to invest $65mn in HOF Capital Strategic Opportunities Fund II
Read More
Signit to Showcase AI, digital trust solutions at LEAP 2026
News
Calendar Icon
August 30, 2026
Signit to Showcase AI, digital trust solutions at LEAP 2026
Read More
Cityscape Global 2026 to showcase Saudi Arabia’s real estate boom
News
Calendar Icon
August 30, 2026
Cityscape Global 2026 to showcase Saudi Arabia’s real estate boom
Read More
Nutanix to unveil strategic announcements during LEAP 2026
News
Calendar Icon
August 30, 2026
Nutanix to unveil strategic announcements during LEAP 2026
Read More
Monsha’at highlights growing role of ‘Prototyping’ in production innovation
News
Calendar Icon
August 30, 2026
Monsha’at highlights growing role of ‘Prototyping’ in production innovation
Read More
RCRC launches Riyadh Digital Innovation District to attract technology talent
News
Calendar Icon
August 30, 2026
RCRC launches Riyadh Digital Innovation District to attract technology talent
Read More
Esports Federation, BSF sign MoU to advance Saudi esports industry
News
Calendar Icon
August 30, 2026
Esports Federation, BSF sign MoU to advance Saudi esports industry
Read More
stc Group to highlight Saudi digital innovation at LEAP 2026
News
Calendar Icon
August 30, 2026
stc Group to highlight Saudi digital innovation at LEAP 2026
Read More
Aramco Ventures, Olayan Group participate in Emerald AI $150mn Series A round
News
Calendar Icon
August 26, 2026
Aramco Ventures, Olayan Group participate in Emerald AI $150mn Series A round
Read More
HUMAIN, Microsoft team up to scale AI in Saudi Arabia
News
Calendar Icon
August 26, 2026
HUMAIN, Microsoft team up to scale AI in Saudi Arabia
Read More