Talk to one of our executive search partners to discuss your recruitment needs
Looking for your next leadership challenge? Explore our open opportunities now.
Explore your executive talent needs with a Principal or Partner near you.
Browse our library of advice and thought leadership articles.
Reach out to your local team of executive search partners
AI is reshaping the future, but its energy demands are skyrocketing. Can business leaders balance innovation with sustainability before it’s too late?
Everyone seems to be talking about AI right now – you really can’t escape it. As business leaders eagerly integrate AI tools into their growth strategies, I feel it’s absolutely crucial to address the elephant in the room, which is the environmental impact of these new technologies. I’ve recently done a lot of reading on the topic, and have also tapped into my fantastic network of Sustainability leaders and talent, both from my studies at the Cambridge Institute of Sustainability Leadership and more broadly across the industry. I’d like to share some of my findings and recommendations, but would also like to be clear that this article is not intended to point fingers. It’s simply a call to business leaders to see AI and sustainability as interconnected, shaping a future where innovation and responsibility go hand in hand.
As consumers, we are increasingly aware of the environmental impact of our choices—whether it’s flying versus driving for a holiday or opting for more sustainable products. Yet, when it comes to AI adoption, much of the conversation focuses on its benefits: increased efficiency, reduced errors, and time savings. What’s often overlooked is the significant energy demand that AI requires. Running AI processes consumes far more computer power—and therefore electricity—than standard computing tasks. When models are in training mode, this energy demand escalates even further.
Most corporate computing processes ultimately run through data centers, which have seen exponential growth in recent years. Ireland, for example, has become a hotspot for data centers due to its geographic location and favourable corporate tax policies. However, this comes at a cost. As reported by The Guardian, government data from Ireland’s Central Statistics Office revealed that data centers' energy consumption rose from 5% of the country’s total in 2015 to 21% by 2023. The International Energy Agency projects that by 2026, data centers could consume up to 1,000 terawatt hours annually—the equivalent of Japan’s entire electricity usage.
This energy consumption translates into a significant carbon footprint, contributing to greenhouse gas emissions. Business leaders must recognise the environmental cost associated with AI and be proactive to mitigate it.
Integrating energy-efficient practices and investing in sustainable technologies are crucial steps in reducing AI’s environmental impact. While discussions around AI’s rapid adoption often touch on the importance of clean energy, a pressing question remains: how quickly should we accelerate AI growth given the current pace of carbon-free energy development? Additionally, optimising AI algorithms to be more efficient can significantly cut energy consumption. By prioritising sustainability, businesses can continue to leverage the power of AI while also demonstrating genuine commitment to environmental responsibility.
Sustainable business practices are no longer optional—they are essential for long-term success. Companies that ignore the environmental implications of AI may face resource scarcity, increased operational costs, and reputational damage in the future. AI adoption is accelerating at an unprecedented pace, with no signs of slowing down. For example, Goldman Sachs has launched an AI assistant for its 10,000 employees worldwide source, while PwC is actively encouraging staff to embrace AI as a “digital colleague” source. Currently, 40% of global companies already use AI, with another 42% exploring ways to integrate it into their business models source. As AI becomes more deeply embedded in corporate strategies, businesses must balance innovation with sustainability to remain competitive and responsible.
A sustainable approach to AI is not only ethically responsible but also a strategic move for long-term success. So how do we get there?
When talking to experts and thought leaders in this field, the relationship between AI and emissions is simply not that straightforward. Today’s leaders need to look at this challenge through a wide lens; AI is often used to substitute a process or person, both of which would have been responsible for emitting carbon.
AI offers significant value and commercial potential, with innovation advancing at an unprecedented pace. A crucial consideration for businesses is the type of AI models they invest in, as different models have varying environmental footprints. For example, some AI models have been trained using cleaner energy sources like nuclear power, while others rely on fossil fuels, leading to higher emissions. Recent advancements also demonstrate that AI can be designed to operate with lower computational demands, reducing energy consumption and environmental impact. This highlights the importance of business leaders staying informed and proactive in assessing the sustainability of their AI investments.
Many companies are already integrating ethical considerations into their AI strategies—so why aren't we extending this same mindset to sustainability? Incorporating environmental impact assessments into AI adoption policies may not require a monumental shift, but it could be a game-changer in fostering more responsible and future-focused innovation. By aligning technological advancement with environmental stewardship, businesses can lead the way in driving both progress and purpose.
AI can optimise energy use and drive advancements in renewable energy technologies. While cost will always be a key factor in adopting new technologies, the definition of "cost" must expand to include environmental impact. By doing so, businesses can ensure that AI adoption supports both financial and environmental sustainability.
As AI continues to reshape the business landscape, leaders must not only drive technological advancement but also align AI strategies with sustainability goals. Balancing innovation with environmental responsibility is essential for long-term success. AI adoption must be in harmony with emission reduction targets, ensuring that businesses leverage its potential while safeguarding the planet. By prioritising energy efficiency and sustainability, leaders can unlock AI’s benefits without compromising future generations.
As someone deeply involved in the talent acquisition space, I recognise that the right leadership is critical to navigating this intersection of technology and sustainability. Senior leaders who understand this balance will be instrumental in guiding organisations through this transition, driving both innovation and responsibility.
If you're a business leader facing these challenges, or if your AI strategy hasn't yet accounted for its environmental impact, Page Executive can connect you to world-class talent to help align your AI and sustainability approaches. Together, we can build a future where technology and the environment grow in harmony.
> Ready to lead the change? Let’s talk.
> Connect with Nina on LinkedIn
Get in touch with one of our consultants now to discuss your leadership talent requirements.
Explore our open opportunities right now.
Looking to build a Sustainability function in your organisation? Download our free eBook now.
Please select your location:
