Companies are using more AI than ever - and many are happy to turn a blind
eye to its environmental impact

Date:
Mon, 08 Sep 2025 09:46:06 +0000

Description:
AI is power and resource hungry, but many companies believe its benefits
still outweigh all of that.

FULL STORY ======================================================================Half of companies think AIs benefits outweigh its environmental impacts Many are
still struggling to see tangible results or high ROI Energy consumption continues to rise amid AI adoption

Many companies are apparently happy to invest in AI without necessarily considering the negative implications, including the environmental effects, new research has found.

A report from Capgemini claims three-fifths (61%) of global organizations
plan to increase GenAI spending in the next year, and that comes after a year when 88% have already boosted GenAI spending.

To that tune, more than half (51%) believe generative AIs benefits will outweigh its environmental impact a sentiment thats more pronounced in the
UK (56%). Are companies blindly investing in AI?

With AI use skyrocketing in recent years, the focus has largely been on the companies behind the AI tools we use, and not the companies using them.

For example, Google recently uncovered a 27% rise in its data center energy consumption during the last half of 2024 and the first half of 2025.
Microsoft saw a 168% rise in total energy consumption between 2020 and 2024.

Companies arent just failing on sustainability one in five (21%) arent satisfied with their outcomes so far, and many note bill shocks, where
scaling AI efforts outpace initial projections.

Rapid adoption doesnt necessarily translate into large scale deployment with tangible ROI, CTO Franck Greverie explained.

Looking ahead, more companies are turning to small language models for increase cost effectiveness, with 12% of IT budgets on average dedicated to generative AI alone.

However, investing freely in AI isnt the most effective solution. Greverie explained that enterprises must set up a solid data foundation, in a trusted environment thats compliant, secure and ensures necessary privacy to see the biggest ROI.

Looking ahead, Capgemini suggests a more targeted approach to keep a handle
on the environmental and economic impacts of AI, and that started with establishing governance policies (which only 46% have done) and focusing on high-impact areas like customer operations, marketing and risk management.
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Link to news story: https://www.techradar.com/pro/companies-are-using-more-ai-than-ever-and-many-a re-happy-to-turn-a-blind-eye-to-its-environmental-impact


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