The rapid adoption of generative AI (gen AI) in businesses is accelerating the climate crisis due to its massive energy and water consumption. While AI can optimize renewable energy and climate modeling, it also strains resources, potentially leading to water shortages and increased carbon footprints. By 2027, global AI demand could cause data centers to consume up to 1.7 trillion gallons of fresh water. Despite these challenges, many businesses have yet to consider the sustainability impact of widespread AI deployment. Only 22% of business leaders cited sustainability as a top concern in a 2023 PwC survey. To balance AI’s value with sustainability, companies must adopt practices such as understanding gen AI’s strategic value, using AI intentionally, evaluating suppliers’ sustainability commitments, monitoring policy trends, and collaborating with tech providers. Ultimately, how companies address AI’s sustainability challenges will reflect their values and missions, driven by increasing demands from younger, sustainability-conscious employees.

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