Half of firms assume AI’s advantages outweigh its environmental impactsMany are nonetheless struggling to see tangible outcomes or excessive ROIEnergy consumption continues to rise amid AI adoptionMany firms are apparently joyful to put money into AI with out essentially contemplating the unfavourable implications, together with the environmental results, new analysis has discovered.A report from Capgemini claims three-fifths (61%) of worldwide organizations plan to extend GenAI spending within the subsequent yr, and that comes after a yr when 88% have already boosted GenAI spending.To that tune, greater than half (51%) imagine generative AI’s advantages will outweigh its environmental influence – a sentiment that’s extra pronounced within the UK (56%).
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Are firms blindly investing in AI?With AI use skyrocketing lately, the main target has largely been on the businesses behind the AI instruments we use, and never the businesses utilizing them.For instance, Google lately uncovered a 27% rise in its knowledge heart power consumption over the last half of 2024 and the primary half of 2025. Microsoft noticed a 168% rise in whole power consumption between 2020 and 2024.Firms aren’t simply failing on sustainability – one in 5 (21%) aren’t glad with their outcomes thus far, and plenty of word “invoice shocks,” the place scaling AI efforts outpace preliminary projections.“Speedy adoption doesn’t essentially translate into massive scale deployment with tangible ROI,” CTO Franck Greverie defined.Signal as much as the TechRadar Professional e-newsletter to get all the highest information, opinion, options and steerage what you are promoting must succeed!Trying forward, extra firms are turning to small language fashions for enhance price effectiveness, with 12% of IT budgets on common devoted to generative AI alone.Nonetheless, investing freely in AI isn’t the best resolution. Greverie defined that “enterprises should arrange a strong knowledge basis, in a trusted surroundings that’s compliant, safe and ensures vital privateness” to see the largest ROI.Trying forward, Capgemini suggests a extra focused strategy to maintain a deal with on the environmental and financial impacts of AI, and that began with establishing governance insurance policies (which solely 46% have achieved) and specializing in high-impact areas like buyer operations, advertising and marketing and danger administration.You may also like
