The climate cost of AI: why businesses must act now

We are delighted to have launched our 2025 AI and Sustainability Report, which uncovers the hidden climate cost of artificial intelligence (AI) and offers practical steps businesses can take to reduce its impact.

The growing energy hunger of AI

AI is transforming industries at speed — but that acceleration comes with a significant environmental footprint. Training a single large AI model can use as much energy as several hundred homes in a year.

Our report, developed in collaboration with the University of Exeter, highlights some of the most pressing concerns:

• Tech giants are struggling to meet net-zero goals due to AI’s rising energy demands.
• 62% of business leaders cite AI’s carbon footprint as their top sustainability issue.
• Only 19% fully trust AI’s output, calling for greater transparency.

Practical steps for sustainable AI

AI doesn’t have to be part of the problem — used wisely, it can be part of the solution. Businesses can take meaningful action by:

• Conduct carbon audits: Assess AI’s environmental impact.
• Choose energy-efficient tools: Opt for renewables-powered data centres.
• Optimise AI use: Focus on high-impact, essential applications.
• Advocate for sustainable policies: Support climate-aligned AI development.

Matt Ville, Hiyield CEO says:

“While AI poses challenges, it also holds immense potential to transform businesses and daily life, paving the way for a more sustainable future.”

Ready to make AI more sustainable? Discover more insights and practical recommendations in our full report.