For insurers the regulations in UK, EU and other major markets are clear; ESG and Net Zero rules apply, and reducing your impact on the climate is mandatory. But how does that sit with the potential building of 100s of data centers, burning power and guzzling drinking quality water to cool servers? Everywhen looks ahead at the issues;
Artificial intelligence (AI) has become a big part of everyday life as we use it at work and in our personal lives to ask questions, streamline tasks, show trends and even entertain us. However, as the uses for AI continue to grow, so does its environmental cost, according to insurance group Everywhen. Their spokesperson said: “We need to be asking ourselves an important question. Can we keep using AI the way we currently are without harming the planet?
“Many people aren’t aware of the environmental impact that comes with a single AI query but, the truth is, if we continue to use AI at the current rate, it will put a significant strain on our natural resources.”
A recent study showed that ChatGPT receives 2.5 billion prompts every day. Over 600 million of these are people searching for information. Each AI prompt requires enormous amounts of data and energy, which contributes to global warming. A single query can consume five to 10 times the energy of a traditional search engine request. The more complex the query, the more energy is required.
One ChatGPT query uses roughly the same amount of electricity as a lightbulb left on for 20 minutes. With over 2.5 billion prompts inputted each day, this quickly adds up to a colossal amount of energy.
Another concern is the amount of water used to run AI. Data centres need cooling systems to protect the hardware, which use huge amounts of water. A recent study demonstrated that for every 100 words generated by ChatGPT, over 500ml of water are used. The equivalent of almost one million baths full of water are used every day to run ChatGPT. It’s estimated that ChatGPT ‘sweats’ off enough water in a year to keep the fountains of the Bellagio Casino in Las Vegas replenished for 1,190 years.
AI is not sustainable in its current form
AI isn’t sustainable in its current form, but governments and organisations are actively working to improve the energy efficiency of these systems. Both the EU and the United States have put in place legislation to reduce the environmental impact of AI. The aim is to build systems that deliver the same quality of results but use less power and fewer resources.
Most organisations today use AI in at least one business function. Studies show that by 2025, 78% of companies had adopted AI and roughly 89% of small businesses used it for everyday tasks. AI helps teams become more productive, efficient and, ultimately, helps companies grow.
As AI becomes an integral part of day-to-day life, many countries are exploring the idea of ‘sovereign AI’. This refers to AI that is designed, built, deployed and governed by a specific country or organisation. This allows them to set their own laws and regulations, while retaining greater control over security and data handling. It also means that they can decide how to source their energy and make greener choices.
AI is now deeply embedded in the modern world and it has become part of the infrastructure shaping how organisations operate, how economies grow and how people interact with technology. Everywhen’s spokesperson concludes: “Looking ahead, we can only hope that sustainability will be a priority, with more conscious choices about how and when AI is being used. Even something as simple as turning off our Google AI Overviews when carrying out traditional searches can help reduce unnecessary demand and help protect our planet.”
For more information call on 0330 808 1800 or go to: www.everywhen.co.uk/business-insurance/cyber-insurance
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