The report examines the energy and data demands arising from AI adoption in Australia and New Zealand. A survey conducted among IT managers revealed that 72% have adopted or are piloting AI technologies. However, 68% expressed concerns about the increased energy consumption associated with AI deployment. Notably, there is significant uncertainty, with 53% unsure of how much energy consumption would rise, and 11% believing it could treble. IT managers prioritise business growth over sustainability, with 90% ranking it as a top priority, while only 13% included ESG goals.

This study aimed to assess the state of AI deployment, readiness of IT infrastructure, the impact on sustainability, and challenges in achieving sustainability KPIs. The objective was to provide evidence to inform ESG and sustainability initiatives, specifically focusing on energy demands from AI.

Results

Finding 1: AI is becoming integral to operations, with a majority of respondents actively engaging in its adoption. Despite this, there is widespread concern about the energy implications. For instance, while 11% of respondents believe energy consumption will treble, 53% are unsure of the exact impact. This uncertainty presents risks for informed decision-making.

Finding 2: Business growth takes precedence over sustainability concerns for IT managers. Although they are tasked with sustainability responsibilities, their engagement in energy and sustainability issues is relatively low. Notably, 38% ranked sustainability and ESG as overlooked issues, yet also as a lower priority compared to business growth and customer experience.

Finding 3: IT managers recognise the importance of IT infrastructure in meeting ESG goals but are more focused on energy efficiency and green energy initiatives than on limiting AI usage. The most overlooked area in AI deployment is employee skills, with 58% of respondents highlighting this issue.

Future research

The report recommends further research to address gaps in understanding the energy implications of AI, the low level of motivation and barriers faced by IT managers regarding sustainability, and the limited availability of mechanisms to support communication and engagement on sustainability issues.

Recommendations

The report suggests that organisations should prioritise increasing their understanding of AI’s energy demands and its impact on sustainability. Enhanced training for IT managers in sustainability-related areas and improved communication mechanisms are necessary to bridge the current gaps. Investing in green energy and optimising equipment use are recommended actions to mitigate the energy impact of AI.