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

DHL to invest $150mn in Riyadh logistics hub
MUBASHER.SA
INTO University Partnerships expands in Kingdom to support students’ global ambitions
MUBASHER
STAMP closes $2mn pre-seed round to develop its AI-powered platform
MUBASHER.SA
Bluworks raises $1mn seed round to accelerate MENA expansion
MUBASHER
SVC signs SAR 1 bn in joint investments with 11 U.S. fund managers
MUBASHER

Related News

Private Equities News
Calendar Icon
Nov 23, 2025
DHL to invest $150mn in Riyadh logistics hub
Read More
Private Equities News
Calendar Icon
Nov 23, 2025
INTO University Partnerships expands in Kingdom to support students’ global ambitions
Read More
Private Equities News
Calendar Icon
Nov 23, 2025
SVC signs SAR 1 bn in joint investments with 11 U.S. fund managers
Read More
Private Equities News
Calendar Icon
Nov 23, 2025
HUMAIN powers Saudi AI growth with new Qualcomm partnership
Read More
Private Equities News
Calendar Icon
Nov 23, 2025
Monsha’at concludes six deals at US-Saudi Investment Forum
Read More
Private Equities News
Calendar Icon
Nov 20, 2025
New Cheval Maison to open in Riyadh as Cheval–Ladun partnership grows
Read More
Private Equities News
Calendar Icon
Nov 20, 2025
HUMAIN, Adobe to build AI models, AI-powered applications
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