Businesses are slowly waking up to the environmental effects of Gen AI

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Emma Walker
Wed, 15 Jan
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New research from Capgemini has uncovered that nearly half of executives attribute the rise in greenhouse gas emissions to generative AI projects within their companies. The survey revealed that only 12% of organizations actually measure the carbon footprint of their AI operations, indicating a lack of quantifiable data in assessing their environmental impact. Businesses are increasingly acknowledging the negative effects of AI on the environment, particularly in terms of energy consumption and resource usage in AI data centers.

Furthermore, there is a trend towards using smaller AI models and exploring renewable energy options to mitigate environmental impacts. However, sustainability remains a low priority for many executives, with only a small percentage considering it when making decisions about AI models. Capgemini emphasizes the importance of implementing sustainable practices in AI operations, such as utilizing more energy-efficient hardware and selecting green data centers.

To address these challenges, Capgemini advocates for industry-wide standards and greater transparency in reporting the environmental footprint of AI. The report urges business leaders to engage in discussions around sustainable AI practices to make more informed and responsible decisions. Cyril Garcia, Head of Global Sustainability Services and Corporate Responsibility at Capgemini, stresses the need for market collaboration and ethical considerations in the use of generative AI for sustainable business value.

In summary, businesses are increasingly recognizing the environmental impact of AI, but more efforts are needed to measure and mitigate these effects, prioritize sustainability in decision-making, and establish industry standards for ethical and sustainable AI practices.

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