logo-en
  • Home
  • Companies
  • Investors
    • Home
  • 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

Kingdom inaugurates its Heavy Equipment Connect Forum at Dhahran Expo
MUBASHER.SA
Horizon partners with Northgate to support Swedish firms entering Saudi market
MUBASHER
Global event agency Catapult expands into Saudi Arabia backed by AstroLabs
MUBASHER.SA
Saudi Arabia to host WTM Spotlight Riyadh in September
MUBASHER.SA
RDI unveils Wadi Jeddah Innovation Hub to support startups
Riyadh – Sharikat Mubasher: The Research, Development, and Innovation Authority (RDI) officially launched the Wadi Jeddah Innovation Hub (WJIH), a new integrated district aimed at strengthening the Kingdom’s innovation ecosystem and supporting startups, investors, and knowledge-driven businesses.Developed by Wadi Jeddah Company, the facility brings together office space, incubators, accelerators, and development plots within a single innovation-focused environment. The project includes 57 startup headquarters, seven office buildings, and more than 53,000 square meters of administrative and commercial space, alongside 28,500 square meters of planned development land.The Hub is designed to serve startups, established companies, and investors, offering shared workspaces, business services, and dedicated areas for events and collaboration. It adopts an integrated operating model that combines international expertise with local capabilities.As part of its global positioning, the project has entered a strategic partnership with Cambridge Innovation Center (CIC) to operate the innovation hub and link it to an international network of more than 650,000 innovators worldwide.For his part, Sattam bin Saud Lingawi, CEO of Wadi Jeddah Company, said the hub aims to incubate 30 startups annually. The program, which began three months ago, has already supported 10 companies working across sectors including healthcare, smart cities, food tech, and IT.Wadi Jeddah Company, King Abdulaziz University’s investment arm, attracts both local and international companies, from inside and outside the university, with the goal of turning innovative ideas, research, and patents into economic projects. The hub’s programs last nine months, divided into three stages, offering tailored support based on each startup’s activity, resources, and target product.

Related News

Private Equities News
Calendar Icon
Feb 3, 2026
Kingdom inaugurates its Heavy Equipment Connect Forum at Dhahran Expo
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
Horizon partners with Northgate to support Swedish firms entering Saudi market
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
Global event agency Catapult expands into Saudi Arabia backed by AstroLabs
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
Saudi Arabia to host WTM Spotlight Riyadh in September
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
RDI unveils Wadi Jeddah Innovation Hub to support startups
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
PwC to open more offices across Saudi Arabia
Read More
Private Equities News
Calendar Icon
Feb 3, 2026
PMI eases to 56.3 as Saudi non-oil sector expands
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
  • News
  • Contact Us
  • Sitemap
2024 All rights reserved to Sharikat Mubasher