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

SDAIA to organize fourth Global AI Summit in September 2026
News
Calendar Icon
November 13, 2025
SDAIA to organize fourth Global AI Summit in September 2026
Read More
Shory Group expands into Saudi market after securing official license
News
Calendar Icon
November 13, 2025
Shory Group expands into Saudi market after securing official license
Read More
CODE to convene global tech leaders at Multiverse 2025 in Silicon Valley
News
Calendar Icon
November 13, 2025
CODE to convene global tech leaders at Multiverse 2025 in Silicon Valley
Read More
RAÝH launches in Riyadh to help investors turn assets into startups
News
Calendar Icon
November 13, 2025
RAÝH launches in Riyadh to help investors turn assets into startups
Read More
Capgemini Report: AI Agents to deliver $450bn to Financial Sector by 2028
News
Calendar Icon
November 12, 2025
Capgemini Report: AI Agents to deliver $450bn to Financial Sector by 2028
Read More
Valor Hospitality expands in Saudi Arabia with major hotel portfolio deal
News
Calendar Icon
November 12, 2025
Valor Hospitality expands in Saudi Arabia with major hotel portfolio deal
Read More
DataCamp acquires Dubai-based Optima in $15 mn deal
News
Calendar Icon
November 12, 2025
DataCamp acquires Dubai-based Optima in $15 mn deal
Read More
Saudi fintech Lean Technologies eyes expansion, future IPO
News
Calendar Icon
November 12, 2025
Saudi fintech Lean Technologies eyes expansion, future IPO
Read More
Saudi Arabia to Join G20 Startup20 Summit in Johannesburg
News
Calendar Icon
November 12, 2025
Saudi Arabia to Join G20 Startup20 Summit in Johannesburg
Read More
NTT eyes Saudi Arabia for potential data center expansion
News
Calendar Icon
November 12, 2025
NTT eyes Saudi Arabia for potential data center expansion
Read More