Artificial Intelligence (AI) has moved quickly from being a futuristic concept to an everyday business tool. Whether it’s summarising data, creating reports, improving marketing, or automating processes, most organisations are now using AI in some form.
Yet many business leaders tell us they’re feeling uneasy.
“Should we be using AI at all if it increases our carbon footprint?”
“How can we explain its impact if a customer or employee asks?”
These are important questions – and they deserve clear, evidence-based answers. The truth is that AI can have a carbon footprint, but with the right approach, businesses can use it responsibly and proportionately, keeping sustainability firmly in view.
What’s the Environmental Impact of AI – Really?
AI uses energy, just like any other digital technology. The difference is that some AI tools, especially those that generate images or text (known as “generative AI”), need more computing power than standard software.
Here’s what the data shows:
- Training a large AI model such as GPT-3 required 1,287 MWh of electricity and emitted around 502 metric tons of CO₂e – about the same as 112 petrol cars running for a year.
- A single ChatGPT query emits between 2.5 and 5 grams of CO₂e – similar to the carbon from boiling the water for a single cup of tea.
- Data centres that power AI already account for around 1 % of global emissions, with that figure expected to rise slightly as use expands.
So yes – AI uses energy. But those numbers mostly relate to training large global models (the work done by companies like OpenAI, Google, and Microsoft).
When your business uses AI tools day-to-day – for example in Microsoft Copilot, Canva, or ChatGPT – the emissions linked to your individual use are relatively small.
Why Businesses Shouldn’t Avoid AI
AI doesn’t have to be a sustainability problem. Used thoughtfully, it can actually support your environmental and social goals.
Some examples:
- Efficiency: AI can optimise routes, schedules, and stock levels – reducing transport mileage and waste.
- Data insights: It can help track energy use, identify hotspots in your carbon footprint, and even help prepare sustainability reports.
- Employee time: Automating low-value admin work frees up staff to focus on innovation and improvement.
Research suggests that AI, used wisely, could help 3.2 to 5.4 billion tonnes of carbon-dioxide-equivalent by 2035 through improved efficiency and innovation.
So, rather than avoiding AI, the focus should be on using it proportionately and transparently.
How to Keep AI Use Responsible and Sustainable
Here’s a practical framework for SMEs and mid-sized organisations to manage AI’s environmental impact.
- Understand where AI is used in your business
List where AI features already appear – in email tools, CRMs, HR systems, or marketing platforms. Many AI functions are embedded by default. Understanding what’s already running helps you identify what can be optimised.
- Choose sustainable providers
When selecting software, look for providers that use renewable-powered data centres or disclose sustainability information.
Google Cloud, Microsoft Azure, and Amazon Web Services all now publish annual sustainability reports detailing their renewable energy use and efficiency improvements.
- Match the tool to the task
Not every job requires the most advanced model. Using smaller or pre-trained AI systems reduces energy use and still delivers great results.
If you’re only using AI to draft text or summarise information, there’s no need to access high-power systems.
- Limit unnecessary use
Treat AI like electricity: use it when it adds value, but avoid leaving it “on” unnecessarily. Simple behavioural changes – like not generating multiple AI drafts or running repeated queries – can reduce usage significantly.
- Offset and communicate responsibly
For businesses already tracking their carbon footprint, include AI as part of your Scope 3 (indirect emissions).
If your AI use grows, consider offsetting through verified carbon schemes – but prioritise reducing use first.
How to Respond When People Ask About AI and Sustainability
Your customers, employees, or investors may have questions about AI’s environmental impact. Here are some ready answers:
Q: Isn’t AI bad for the environment?
A: Like all technology, AI uses energy – but the impact from using it in business tools is small. The biggest emissions come from training global models, which providers like Microsoft and Google already offset through renewable energy and carbon-neutral programmes. What matters most is how responsibly we use it.
Q: Shouldn’t we avoid using it altogether?
A: Avoiding AI means missing opportunities to reduce waste and improve efficiency. We focus on using it proportionately – only where it adds genuine business or sustainability value.
Q: How do we make sure our AI use aligns with our sustainability goals?
A: We choose software providers committed to renewable energy, track our usage, and educate our teams to use AI thoughtfully. We also measure and report our footprint transparently as part of our sustainability strategy.
Q: What’s the bigger picture?
A: AI can actually help solve sustainability challenges – from energy forecasting to carbon accounting. When used well, it helps reduce emissions overall rather than increasing them.
Practical Steps for Every Business
Here’s how to make AI use proportionate, efficient, and sustainable:
- Audit – Identify where AI is being used and why.
- Educate – Help your teams understand AI’s impact and how to use it efficiently.
- Set principles – Establish a simple policy that AI should be used to add value, not to replace human judgment.
- Engage suppliers – Ask your IT or software providers about their sustainability commitments.
- Measure and improve – Track energy use where possible, and report progress annually.
By approaching AI like any other part of your sustainability strategy – with governance, awareness, and accountability – it becomes a useful, responsible business tool rather than a liability.
Final Thoughts
AI’s environmental impact shouldn’t discourage businesses from adopting it – it should encourage smarter, more transparent use.
When customers or colleagues ask about AI’s carbon footprint, the answer is simple:
“Yes, AI uses energy – but in our business, we use it thoughtfully, in ways that reduce waste, improve efficiency, and align with our sustainability goals.”
That’s what a proportionate approach looks like.
Businesses that understand their digital footprint, choose ethical providers, and use AI where it adds real value are not only being responsible – they’re leading by example.