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

user icon
GHADA.ISMAIL
calender icon
Jan 20, 2025
article image

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.


Share

Related News

Exel by Merak awards $5.1mn to 17 Saudi Gaming Startups
News
Calendar Icon
February 19, 2026
Exel by Merak awards $5.1mn to 17 Saudi Gaming Startups
Read More
Saudi Arabia sees 85% surge in investment licenses in Q4 2025
News
Calendar Icon
February 19, 2026
Saudi Arabia sees 85% surge in investment licenses in Q4 2025
Read More
Lumi expands Saudi footprint with new branch in Qassim
News
Calendar Icon
February 19, 2026
Lumi expands Saudi footprint with new branch in Qassim
Read More
DGA qualifies 16 companies for digital government projects
News
Calendar Icon
February 19, 2026
DGA qualifies 16 companies for digital government projects
Read More
Saudi platform Jozo launches Kingdom’s 1st tokenized property deed
News
Calendar Icon
February 19, 2026
Saudi platform Jozo launches Kingdom’s 1st tokenized property deed
Read More
Sure Global Tech approves new AI-focused subsidiary in Riyadh
News
Calendar Icon
February 18, 2026
Sure Global Tech approves new AI-focused subsidiary in Riyadh
Read More
ZIWO secures strategic investment to deepen presence across MENA
News
Calendar Icon
February 18, 2026
ZIWO secures strategic investment to deepen presence across MENA
Read More
CEER strengthens strategic partnership with FEV
News
Calendar Icon
February 18, 2026
CEER strengthens strategic partnership with FEV
Read More
Elevix launches digital capability center to support GCC startups
News
Calendar Icon
February 18, 2026
Elevix launches digital capability center to support GCC startups
Read More
EY KSA, Microsoft to explore new consulting opportunities in Saudi Arabia
News
Calendar Icon
February 17, 2026
EY KSA, Microsoft to explore new consulting opportunities in Saudi Arabia
Read More