Businesses Urged to Prioritize Sustainability in Generative AI Strategies

Organizations are increasingly adopting generative AI to drive business growth, with adoption rates rising from 6% at the end of 2023 to 24% by October 2024. However, this rapid adoption has significant environmental consequences, including higher greenhouse gas emissions and increased resource consumption. Capgemini Research Institute’s

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recent report highlights that only 12% of businesses measure the environmental footprint of their Gen AI usage, while just 38% of executives are aware of its impact. Despite these challenges, some companies are beginning to incorporate sustainability measures, such as using renewable energy and smaller AI models, into their AI lifecycle.

The report shows the need for collaborative action, as many organizations rely on technology providers to address the environmental footprint of Gen AI. Limited transparency from vendors and a lack of industry-wide methodologies further complicate efforts to track emissions. Capgemini calls for robust governance models, multidisciplinary approaches, and standardized reporting to ensure sustainable and ethical AI usage. It also recommends assessing both the financial return and environmental cost of Gen AI projects and exploring alternative technologies where possible. While Gen AI has the potential to support sustainability initiatives, continuous research, effective policies, and stakeholder collaboration are essential for mitigating its environmental impact. 

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