Companies are using more AI than ever - and many are happy to turn a blind eye to its environmental impact

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Many firms apparently believe AI is worth the environmental damage

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(Image credit: Shutterstock/aapsky)
  • Half of companies think AI’s benefits outweigh its environmental impacts
  • Many are still struggling to see tangible results or high ROI
  • Energy consumption continues to rise amid AI adoption

Many companies are apparently happy to invest in AI without necessarily considering the negative implications, including the environmental effects, new research has found.

A report from Capgemini claims three-fifths (61%) of global organizations plan to increase GenAI spending in the next year, and that comes after a year when 88% have already boosted GenAI spending.

To that tune, more than half (51%) believe generative AI’s benefits will outweigh its environmental impact – a sentiment that’s more pronounced in the UK (56%).

Are companies blindly investing in AI?

With AI use skyrocketing in recent years, the focus has largely been on the companies behind the AI tools we use, and not the companies using them.

For example, Google recently uncovered a 27% rise in its data center energy consumption during the last half of 2024 and the first half of 2025. Microsoft saw a 168% rise in total energy consumption between 2020 and 2024.

Companies aren’t just failing on sustainability – one in five (21%) aren’t satisfied with their outcomes so far, and many note “bill shocks,” where scaling AI efforts outpace initial projections.

“Rapid adoption doesn’t necessarily translate into large scale deployment with tangible ROI,” CTO Franck Greverie explained.

Looking ahead, more companies are turning to small language models for increase cost effectiveness, with 12% of IT budgets on average dedicated to generative AI alone.

However, investing freely in AI isn’t the most effective solution. Greverie explained that “enterprises must set up a solid data foundation, in a trusted environment that’s compliant, secure and ensures necessary privacy” to see the biggest ROI.

Looking ahead, Capgemini suggests a more targeted approach to keep a handle on the environmental and economic impacts of AI, and that started with establishing governance policies (which only 46% have done) and focusing on high-impact areas like customer operations, marketing and risk management.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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