How Companies Can Mitigate AI’s Growing Environmental Footprint

As artificial intelligence (AI) becomes increasingly ubiquitous in business and governance, its substantial environmental impact — from significant increases in energy and water usage to heightened carbon emissions — cannot be ignored. By 2030, AI’s power demand is expected to rise by 160%. However, adopting more sustainable practices, such as utilizing foundation models, optimizing data processing locations, investing in energy-efficient processors, and leveraging open-source collaborations, can help mitigate these effects. These strategies not only reduce AI’s environmental footprint but also enhance operational efficiency and cost-effectiveness, balancing innovation with sustainability.