Global | AI and Climate: Disruptive Potential Amid Growing Resource Strain

Artificial intelligence (AI) holds great potential for boosting economic productivity and driving climate action, supporting innovations for the energy transition. However, it also places increasing strain on energy and water resources.

Key points

• Key points:
• AI is being adopted at an unprecedented pace, raising expectations for productivity gains, though the long-term economic effects remain uncertain.
• AI’s growing computational needs are significantly increasing energy consumption worldwide, but also the water usage.
• AI supports breakthroughs in clean energy, sustainable finance and climate policy, helping both mitigation and adaptation efforts.
• To fully realize its disruptive potential, policies must ensure AI’s growth aligns with sustainability by encouraging energy efficiency and minimizing its environmental footprint.

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