Generative AI's environmental footprint concerns executives

Capgemini has published a report discussing the sustainability challenges posed by generative AI and the steps organisations are taking to formulate responsible strategies in this field.

The report is based on the opinions of 2,000 global executives and underscores the environmental impact of generative AI, which is becoming an increasing concern. In the UK, findings reveal that half of the executives surveyed acknowledge that generative AI has caused a significant increase in their organisations' greenhouse gas (GHG) emissions. Despite this, only a small proportion, about 14%, are actively measuring the environmental impact of generative AI.

According to the report, organisations often give minimal consideration to the environmental footprint when developing or selecting a generative AI model. Many are still in preliminary stages of reducing the environmental impact of these technologies. Enhanced awareness exists with over a third of organisations already putting generative AI to use for sustainability initiatives.

The report indicates that only 12% of executives whose organisations use generative AI claim their organisation measures its environmental footprint. Despite its rapid adoption, there is a noticeable gap between the deployment of generative AI and the implementation of sustainability measures. Performance, scalability, and cost remain the dominant factors in model evaluation, overshadowing environmental concerns.

Industry-wide collaboration appears essential to fully address generative AI's environmental footprint, with many companies relying heavily on their technology partners for solutions. Transparency issues with providers and a lack of clear methodologies complicate organisations' ability to measure the technology's environmental impact effectively.

Capgemini's Head of Global Sustainability Services and Corporate Responsibility, Cyril Garcia, stated, "If we want Gen AI to be a force for sustainable business value, there needs to be a market discussion around data collaboration, drawing up industry-wide standards around how we account for the environmental footprint of AI, so business leaders are equipped to make more informed, responsible business decisions, and mitigate these impacts."

The report proposes that businesses conduct comprehensive evaluations of both the financial return on investment and the environmental footprint associated with generative AI projects. Organisations should ascertain the necessity of energy-intensive generative AI technologies, opting for alternatives where feasible.

Although generative AI poses environmental challenges, it can contribute to sustainability objectives, such as ESG reporting, material optimisation, and sustainable design. Approximately one-third of executives are already harnessing generative AI for these purposes, and many expect a reduction in GHG emissions as a result of these initiatives. However, caution is advised given the low number of companies measuring these emissions.

An effective governance model encompassing various stakeholders across the generative AI ecosystem is deemed crucial for sustainable, ethical, and transparent AI usage. A significant majority of executives, around 62%, believe robust governance can substantially mitigate the environmental impacts of generative AI.