Companies are turning a blind eye to AI’s dirty secret, report finds

The rapid adoption of artificial intelligence (AI) is driving up energy use and carbon emissions, with many companies investing heavily in the technology while paying little attention to its environmental consequences, according to a recent report by Capgemini, a French information multinational company.

According to the report, 61% of global firms plan to increase their spending on generative AI in the coming year, after 88% already raised investments over the past 12 months. 

More than half of the survey respondents (51%) said they believed the benefits of the technology would outweigh its environmental impact, with the figure even higher in the United Kingdom (UK).

The report also highlights a sharp rise in energy use among leading technology companies. 

Google recently recorded a 27% increase in data centre consumption between late 2024 and first half of 2025, while Microsoft's energy use has risen 168% between 2020 and 2024. 

Capgemini's analysts warn that rapid investment does not necessarily guarantee financial returns. They argue that companies should adopt smaller, more efficient language models, create stronger data governance frameworks, and focus on specific use cases such as customer service and risk management to balance costs with sustainability.