Published by the Capgemini Research Institute, the report found that almost half (48 per cent) of executives believe their use of generative AI (Gen AI) has driven a rise in emissions, with 42 per cent needing to reassess climate goals.
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While adoption of Gen AI has risen sharply – increasing fourfold between 2023 and 2024, according to the report - just 12 per cent of executives that use the technology say their organisation measures the environmental footprint of that use. Only a fifth of respondents ranked environmental impact as a top five factor when selecting or building AI models.
The research found that three-quarters of businesses are finding it challenging to measure the technology’s footprint due to limited transparency from providers, with the industry lacking a methodology around how to account for environmental footprint. As the vast majority (three-quarters) of businesses exclusively use pre-trained models, executives are heavily reliant on their technology partners to assess Gen AI’s climate impact.
“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,” said Cyril Garcia, Capgemini’s head of Global Sustainability Services.
The report suggests that businesses should conduct a thorough assessment of both the financial ROI and environmental footprint of their generative AI projects before launch, considering less energy-intensive technologies where appropriate. Capgemini was also keen to highlight that AI can have positive as well as negative effects on sustainability. Top corporate use cases include ESG reporting and scenario planning, material optimisation for key industries, and sustainable/circular product design.
“AI has the potential to accelerate business objectives and sustainability initiatives,” said Garcia.
“We are proposing here practical steps to follow for business leaders to fully harness technologies such as Gen AI and deliver a positive impact for organisations, society and the planet.”
The full report, ‘Developing sustainable Gen AI’, can be read here.
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