logo-en
  • Home
  • Companies
  • Investors
  • Opportunities
    • Home
    • SME Loans
  • FinTech Hub
  • News
LoginRegister
  • english iconEnglish
  • english iconArabic
  1. Mubasher News
  2. Report: Organizations face growing challenge of AI’s environmental impact

Report: Organizations face growing challenge of AI’s environmental impact

GHADA.ISMAIL
Jan 20, 2025
Rising emissions challenge sustainability as organizations embrace AI-powered growth

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.

Tags

Gen AI
Capegemini
sustainability
Share

Attract clients with your ad

Start Now

Trending

Report: Saudi Arabia leads Middle East in crypto inflows
MUBASHER.SA
SAB Invest launches $266M private credit fund focused on MENA
MUBASHER.SA
Kafalah wins Best Institution for Sustainable Finance award
MUBASHER.SA
Saudi Health Ministry organizes Global Health Exhibition 2025 in Riyadh
MUBASHER.SA
E-commerce registrations in Saudi Arabia exceed 39K in Q2-25
MUBASHER.SA

Related News

Private Equities News
Calendar Icon
Jul 7, 2025
Report: Saudi Arabia leads Middle East in crypto inflows
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
SAB Invest launches $266M private credit fund focused on MENA
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
Kafalah wins Best Institution for Sustainable Finance award
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
Saudi Health Ministry organizes Global Health Exhibition 2025 in Riyadh
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
E-commerce registrations in Saudi Arabia exceed 39K in Q2-25
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
Saudi Arabia issues over 80K commercial registers in Q2-25
Read More
Private Equities News
Calendar Icon
Jul 7, 2025
Zain KSA, Huawei launch Riyadh Antenna platform
Read More

Sharikat Mubasher Newsletter

Get insights and exclusive content from the world of business and finance that you can trust delivered to your inbox

Email is Required
Should be a valid email

Democratizing private equity investments

  • Home
  • Companies
  • Investors
  • FinTech Hub
  • Opportunities
  • News
  • Contact Us
  • Sitemap
2024 All rights reserved to Sharikat Mubasher