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 Industry ecosystem participates in Hannover Messe 2026
News
Calendar Icon
April 16, 2026
Saudi Industry ecosystem participates in Hannover Messe 2026
Read More
NEOM Port launches multimodal corridor linking Europe to GCC
News
Calendar Icon
April 16, 2026
NEOM Port launches multimodal corridor linking Europe to GCC
Read More
PIF Board of Directors approves 2026-2030 strategy
News
Calendar Icon
April 16, 2026
PIF Board of Directors approves 2026-2030 strategy
Read More
Report: Cyber risks outpace AI concerns for Middle East leaders
News
Calendar Icon
April 15, 2026
Report: Cyber risks outpace AI concerns for Middle East leaders
Read More
Eli Lilly acquires CE-Ventures portfolio company CrossBridge Bio
News
Calendar Icon
April 15, 2026
Eli Lilly acquires CE-Ventures portfolio company CrossBridge Bio
Read More
Adyen partners with Careem Pay to enhance digital remittances in UAE
News
Calendar Icon
April 15, 2026
Adyen partners with Careem Pay to enhance digital remittances in UAE
Read More
Saudi Arabia climbs to no.1 in Global Digital Readiness Ranking
News
Calendar Icon
April 15, 2026
Saudi Arabia climbs to no.1 in Global Digital Readiness Ranking
Read More
Safari Group, PMaestro plan $35mn Fund to expand Chuck E. Cheese network
News
Calendar Icon
April 15, 2026
Safari Group, PMaestro plan $35mn Fund to expand Chuck E. Cheese network
Read More
Riyadh to host 3 Saudi accelerators backing agricultural, sustainability startups
News
Calendar Icon
April 15, 2026
Riyadh to host 3 Saudi accelerators backing agricultural, sustainability startups
Read More
Falak Holing acquires Kernel for AI to expand technical capabilities
News
Calendar Icon
April 14, 2026
Falak Holing acquires Kernel for AI to expand technical capabilities
Read More