ANZ IT leaders unprepared for ESG impact of AI

Nearly three in four (72%) IT leaders in Australia and New Zealand are adopting or piloting AI technologies, but many are unprepared for the inevitable increase in emissions the AI revolution is causing, a new report has found.

The report, prepared by Pure Storage in collaboration with the University of Technology Sydney’s Institute for Sustainable Futures, found that 68% of IT managers across the two nations have at least some concerns about the impact of AI adoption on energy consumption. But when asked about how much energy consumption would grow from AI deployment, the majority (53%) said they are unsure.

Meanwhile, only 36% of IT managers in the region report having authority to influence sustainability initiatives, while 38% reported sustainability and ESG as one of their top three overlooked issues. The survey also found that 69% of IT managers agree that IT infrastructure is critical to meeting their sustainability goals, but only 4% have adopted a strategy of limiting AI usage to offset energy consumption.

A recent World Economic Forum study estimated that the computational power required to sustain AI’s rise is doubling about every 100 days, and that by 2028, AI could be using more power than Iceland used in 2021. Pure Storage Area VP Amy Rushall said the findings should concern the IT sector.

“It is good to see Australia and New Zealand embracing AI and it will no doubt benefit organisations, individuals and the economies in the region, but we have to be aware of its impact on the environment,” she said. “This report should serve as a wake-up call for the government, regulators, boards of directors and investors that the pace of development needs to be tampered by an equally robust scrutiny on environmental sustainability.”

“A clear picture is emerging that while Australia and New Zealand are adopting AI and data centres at a rapid rate, little or no attention is being paid to the significant sustainability impacts they will cause,” said Gordon Noble, Research Director, Business, Economy and Governance, ISF. “This should be concerning for not only regulators but for the multibillion-dollar superannuation and investment sectors, who increasingly see data centres as a source of income. Left unchecked, this will contribute to worsening carbon emissions, risking a further exacerbation of our global warming challenge.”

Image credit: iStock.com/Nikada