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

Saudi Arabia, BIE sign See Agreement for Expo 2030 Riyadh
News
Calendar Icon
August 26, 2026
Saudi Arabia, BIE sign See Agreement for Expo 2030 Riyadh
Read More
NTT DATA to participate in LEAP 2026, showcase AI-powered intelligent infrastructure
News
Calendar Icon
August 26, 2026
NTT DATA to participate in LEAP 2026, showcase AI-powered intelligent infrastructure
Read More
Saudi Arabia signs SAR 1.6bn deal to develop 4th Jeddah Port Terminal
News
Calendar Icon
August 25, 2026
Saudi Arabia signs SAR 1.6bn deal to develop 4th Jeddah Port Terminal
Read More
Jeddah to host Saudifood Show, Saudifood Manufacturing next September
News
Calendar Icon
August 25, 2026
Jeddah to host Saudifood Show, Saudifood Manufacturing next September
Read More
Saudi Arabia signs $5bn Credit Line Agreement with France
News
Calendar Icon
August 25, 2026
Saudi Arabia signs $5bn Credit Line Agreement with France
Read More
Qiddiya Investment Company to develop entertainment destination in France
News
Calendar Icon
August 25, 2026
Qiddiya Investment Company to develop entertainment destination in France
Read More
Diriyah Company bags SAR 6 bn deals with 27 French companies
News
Calendar Icon
August 25, 2026
Diriyah Company bags SAR 6 bn deals with 27 French companies
Read More
Aramco signs $3.7bn in agreements with French companies
News
Calendar Icon
August 25, 2026
Aramco signs $3.7bn in agreements with French companies
Read More
wfrlee establishes Saudi entity to scale tourism platform
News
Calendar Icon
August 24, 2026
wfrlee establishes Saudi entity to scale tourism platform
Read More
Ericsson to showcase advanced solutions at LEAP 2026
News
Calendar Icon
August 24, 2026
Ericsson to showcase advanced solutions at LEAP 2026
Read More