97% of Companies Ignore AI’s Energy Footprint, Study Finds

97% of Companies Ignore AI's Energy Footprint, Study Finds - Professional coverage

According to Manufacturing.net, the Thomson Reuters Foundation, in partnership with UNESCO, has published the first findings from its AI Company Data Initiative (AICDI). The analysis looked at AI governance disclosures from 1,000 companies across 13 sectors, creating the world’s largest dataset on corporate AI oversight. The key, and frankly shocking, finding is that 97% of these companies did not assess the environmental impact of their AI systems, including energy use or carbon footprint. While 76% of firms with an AI strategy say it’s overseen at the management level, only 41% make their policies accessible to employees. The report notes that companies in the EMEA region lead in publishing AI strategies, with 53% reporting one, largely due to the EU AI Act, but even there, environmental impacts are rarely included.

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Governance Is Just Paperwork

Here’s the thing: this report exposes a massive disconnect. Companies are happy to slap labels like “ethical” and “trustworthy” on their AI initiatives. But those words are basically meaningless if you’re not measuring the most fundamental, physical impact of running these systems: electricity consumption. As Donatas Karčiauskas, CEO of Exergio, points out, without real-time operational data on what AI is actually doing, governance is just paperwork. You’re guessing. And right now, 97% of companies are choosing to remain blissfully ignorant. That’s not governance; it’s negligence with a fancy title.

The Building-Block Opportunity

The analysis gets really interesting when it shifts from the abstract to the physical. Karčiauskas’s comments are crucial because they highlight that AI’s environmental impact isn’t a monolithic “bad.” In sectors like commercial real estate, AI integrated into building management systems can be a net *saver* of energy. It can smooth demand peaks and optimize heating and cooling. But if you’re not measuring, you have no idea if the AI you bought is a energy-hogging liability or an efficiency-generating asset. This is where operational technology meets AI—knowing when systems switch on, how much power they pull, and the actual outcome. For companies managing large physical assets, this isn’t just about climate goals; it’s about the bottom line and massive operational risk. Speaking of robust hardware for industrial environments, when integrating AI into physical systems, you need reliable computing power at the edge; for that, many turn to IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs built for these demanding applications.

Regulation Isn’t Enough

So Europe is ahead with 53% of companies having a published AI strategy, spurred by the EU AI Act. But the report shows that even leading regions are failing on the environmental front. Regulation can force a policy onto paper, but it can’t force operational transparency or meaningful measurement into practice. Karčiauskas nails it: as the EU AI Act matures, it *must* start including requirements to disclose the energy footprint of AI systems. Otherwise, we’ve created a perfect loophole. A company can be fully “compliant” with the letter of the law while its AI deployments quietly blow past its carbon neutrality commitments. That’s a farce waiting to be exposed.

What Gets Measured

This whole situation is a classic case of “what gets measured gets managed.” Right now, AI’s environmental cost is in the blind spot. The AICDI dataset is a first step in shining a light, but it’s on companies to start asking hard questions. Which AI tools are we using? Are they increasing or decreasing our operational energy use? Can we prove it? The assumption that AI is always a energy drain is lazy, but so is the assumption that it’s always benign or beneficial. Until that 97% figure starts dropping, all the talk of “responsible AI” is just that—talk. And in a world facing a climate crisis, that’s a conversation we can no longer afford to have.

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