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

MASAHA reaches $1.5mn valuation after new seed round
MUBASHER
Saudi Electronic University launches SEU Sports Tech Accelerator
MUBASHER.SA
Guggenheim considers Saudi office for global expansion plans
MUBASHER
Saudi Arabia unveils $140mn cybersecurity investments at Black Hat MEA 2025
MUBASHER.SA
Saudi Arabia ranks 5th globally in AI sector growth
MUBASHER.SA

Related News

Private Equities News
Calendar Icon
Dec 7, 2025
Saudi Electronic University launches SEU Sports Tech Accelerator
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
Guggenheim considers Saudi office for global expansion plans
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
Saudi Arabia unveils $140mn cybersecurity investments at Black Hat MEA 2025
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
Saudi Arabia ranks 5th globally in AI sector growth
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
sirar by stc, Microsoft partner to boost cybersecurity in Saudi Arabia
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
Saudi Electronic University launches SEU Sports accelerator
Read More
Private Equities News
Calendar Icon
Dec 7, 2025
Al-Swaha: Saudi AI investment pipeline to hit SAR 100 bn
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