An eco building covered in green vegetation. — Photo by Danist Soh on Unsplash

Our Founder & CEO, Nigel O’Neill recently wrote an article for the Business Graduates Association (BGA) exploring an important, yet often overlooked strategic consideration: the environmental cost of AI.

AI systems are power-intensive — a single ChatGPT query consumes approximately ten times more electricity than a Google search, and global data centres may soon account for 3% of the world's electricity demand, doubling their 2022 usage.

Yet, AI also presents considerable opportunities to improve sustainability. Aviation companies are using AI to reduce aircraft contrails, which account for about one-third of the industry's climate impact. Innovative start-ups, such as Greyparrot, are leveraging AI to enhance recycling and waste management efficiency.

The imperative for enterprise leaders today is clear: align AI usage with your sustainability objectives. Key actions include:

1 - Informed decisions:

AI energy consumption and environmental impact needs to be factored into solution design and investment decisions. This may mean extending existing ESG tracking systems. Or, building new capabilities and collaborations across teams to forecast, measure and report AI’s environmental footprint effectively.

2 - Designing with sustainability in mind:

Not every solution needs AI. And not all AI models are created equal — some require much more energy than others. Using smaller, more efficient models, thinking about how often models are retrained, and putting tools in place to monitor performance can all help reduce impact without losing effectiveness.

3 - Understanding the bigger picture:

ESG may have slipped from boardroom and political agendas. But consumer expectations haven’t gone away. Most people still want to support companies that act responsibly — and are willing to pay more for sustainable products. Getting AI right is part of living up to that responsibility.

Sustainable AI is more than an environmental issue — it is a potential strategic advantage.

Please click here to read the full article: Understanding and curbing the environmental cost of AI

Technology hasn’t changed the fundamentals of business but it is changing how we create and derive value. Tarralugo’s digital strategy consulting services help you make sense of how to leverage these technological advances in your business. For more information, contact us here.