The Dual Challenge of AI and Energy Consumption THE DUAL CHALLENGE OF AI AND ENERGY CONSUMPTION: QUESTIONS BOARDS AND MANAGEMENT SHOULD BE ASKING JULY 2024 INTRODUCTION estimates that fully implementing AI in Google As the digital age accelerates, the intersection of searches would result in nearly 10 terawatt-hours artificial intelligence (AI) technology and energy of additional electricity annua. [...] Sasha Luccioni and others discusses with climate and transition plans under the steep environmental cost of the surge in AI development, while also supporting their clients adoption, and the wide variance in the orders of and investment companies along the transition magnitude between different AI-related tasks. [...] The four scenarios illustrated in To help guide strategic planning and the table underscore the benefit to financial investment decisions, Table 1 illustrates the institutions of intentionally and thoughtfully potential outcomes for financial institutions aligning their AI strategies with sustainability at the intersection of AI adoption rates and goals, but also point out the costs. [...] For example, Focusing on Scope 2 emissions, which given the anticipated surge in AI’s energy encompass indirect emissions from the consumption, the reliance on data centres generation of purchased electricity, and Scope 3 powered by non-renewable sources directly emissions, which relate to emissions generation impacts the Scope 2 emissions of banks and THE DUAL CHALLENGE OF AI AND ENERGY CONSUMPTI. [...] In fact, this influence is a large • What steps are we taking to monitor and part of the transition planning conversation for reduce the energy consumption of our AI financial institutions and the markets and clients operations? they serve.
Related Organizations
- Pages
- 8
- Published in
- Canada
Table of Contents
- QUESTIONS BOARDS AND MANAGEMENT SHOULD BE ASKING 1
- INTRODUCTION 1
- AI AND ENERGY CONSUMPTION 2
- VIEW FROM FINANCIAL INSTITUTIONS 4
- Table 1 Strategic Investment Outcomes for Financial Institutions 5
- AI ADOPTION RATE HIGH AI ADOPTION RATE LOW 5
- Key Opportunities 5
- RisksMitigation 5
- Recommendations 5
- Key Opportunities 5
- RisksMitigation 5
- Recommendations 5
- AI ADOPTION RATE HIGH AI ADOPTION RATE LOW 6
- Key Opportunities 6
- RisksMitigation 6
- Recommendations 6
- Key Opportunities 6
- RisksMitigation 6
- Recommendations 6
- ADDRESSING SCOPE 2 AND 3 EMISSIONS 6
- EFFECTIVE CHALLENGE FOR FINANCIAL INSTITUTIONS AND THEIR BOARDS 7
- Energy Consumption and Efficiency 7
- Data Centre Partnerships 7
- Scope 2 and Scope 3 Emissions 7
- Strategic Investments 7
- Regulatory Compliance and Risk 8
- Management 8
- Innovation and Market Leadership 8
- Long-term Sustainability Goals 8
- LOOKING AHEAD 8