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AI is a double-edged sword: large companies face “electricity hogs” on their way to carbon neutrality

2024-08-05

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The speed of AI development is so fast that no other industry in human history can compare with it. However, the rapidly growing energy consumption behind AI has also attracted global attention. Balancing the development of AI technology with the sustainability of environmental resources may be one of the important issues in the next few years.

The rapid growth of energy consumption brought about by AI has brought challenges to the carbon neutrality process of technology giants. Google's carbon emissions in 2023 soared 48% compared with five years ago, precisely because of the increase in energy consumption of data centers caused by its AI strategy. Baidu mentioned in its 2023 ESG report that the company will include the impact of large models in the climate change risk identification list.

Baidu, Alibaba, and Tencent have all announced their goal of achieving carbon neutrality at the operational level by 2030. Alibaba also said that its cloud computing business will take the lead in achieving scope 3 carbon neutrality. Faced with the "electric tiger" of AI, what strategies do big companies have to "tame" it? How should the positive and negative environmental effects of AI be measured? (China Securities Journal)