Integrating AI into ESG goals marks a critical juncture for businesses. While AI holds promise, it is energy-intensive.
Paradox of AI’s Energy Demands vs. ESG Goals
Integrating Artificial Intelligence (AI) into Environmental, Social, and Governance (ESG) goals marks a critical juncture for businesses. The question we face is not just about readiness but also about necessity. While AI holds promise, it is energy-intensive, i.e. 1-1.5% of global electricity use is from data centres. Further, with Large Language Models (LLMs) such as ChatGPT dominating the AI landscape, some studies have projected their potential electricity consumptions between 85.4 to 134.0 terrawatt-hour (TWh) – which is equivalent to Sweden or Argentina’s annual electricity use by 2027. This energy demands pose a paradox: can we use AI to further ESG goals without compromising environmental sustainability? This delicate balance is where the future of responsible business pivots.
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