AI's Energy Paradox: Challenges and Opportunities for Sustainable AI

The World Economic Forum white paper explores the growing intersection of artificial intelligence and energy consumption. It highlights the paradox where AI, while driving innovation and efficiency, also significantly increases electricity demand, particularly in data centers. The study analyzes strategies to mitigate AI's energy footprint, including optimizing AI system efficiency, adopting renewable energy sources, and improving data center design. It further examines AI's potential to accelerate the broader energy transition through applications like smart grids and predictive maintenance. The paper also identifies key challenges like infrastructure limitations, environmental concerns, and regulatory gaps that must be addressed through multi-stakeholder collaboration and financial incentives. Ultimately, the paper encourages monitoring key indicators of AI and energy impact.

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