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

Flat6Labs opens applications for Cohort 5 of Green Growth Accelerator in Egypt
News
Calendar Icon
March 26, 2026
Flat6Labs opens applications for Cohort 5 of Green Growth Accelerator in Egypt
Read More
Saudi manufacturing sector expands with 161 new licenses in January
News
Calendar Icon
March 25, 2026
Saudi manufacturing sector expands with 161 new licenses in January
Read More
Blossom Accelerator launches DominAite to foster AI-native startups
News
Calendar Icon
March 25, 2026
Blossom Accelerator launches DominAite to foster AI-native startups
Read More
Khalifa Fund pacts with Keeta to empower SMEs in F&B sector
News
Calendar Icon
March 25, 2026
Khalifa Fund pacts with Keeta to empower SMEs in F&B sector
Read More
Phoenix Venture Partners expands investor base with 3rd Fund close
News
Calendar Icon
March 24, 2026
Phoenix Venture Partners expands investor base with 3rd Fund close
Read More
Saudi Aramco signs SAR 1.4 Bn HPC deal with solutions by stc
News
Calendar Icon
March 24, 2026
Saudi Aramco signs SAR 1.4 Bn HPC deal with solutions by stc
Read More
Saudi tech event LEAP 2026 moves to new dates
News
Calendar Icon
March 24, 2026
Saudi tech event LEAP 2026 moves to new dates
Read More
Savvy Games Group acquires Moonton from ByteDance in $6bn deal
News
Calendar Icon
March 24, 2026
Savvy Games Group acquires Moonton from ByteDance in $6bn deal
Read More
Mawani expands maritime network with 5 new shipping services
News
Calendar Icon
March 24, 2026
Mawani expands maritime network with 5 new shipping services
Read More
Ninja explores IPO in Riyadh amid regional market volatility
News
Calendar Icon
March 24, 2026
Ninja explores IPO in Riyadh amid regional market volatility
Read More