Do the Benefits of Generative AI Outweigh its Environmental Impact?

The transformative nature of generative AI has fundamentally changed the way we access and interact with information.

AI can generate well-structured responses from unstructured queries, bringing together data sources more effectively than traditional internet searches or database queries. This shift effectively allows individuals to become data analysts, with artificial intelligence writing the queries instead of relying on human input.

There have been concerns raised about AI being wasteful and energy intensive. However, understanding data flow and processing, and using AI wisely, can lead to significant improvements in efficiency, outweighing any perceived inefficiencies. Success hinges on deploying the most effective AI tool and striking a healthy balance between functionality and resource usage.

THE TRUTH ABOUT AI AND ENERGY USE

The narrative surrounding energy consumption in relation to AI often focuses on doom and gloom predictions, concerns about capacity and availability of data centers, as well as doubts about whether there will be enough energy for the projected rise in reliance on AI tools.

The debate raises questions about the impact of AI on the energy grid and the amount of energy consumed by AI processes. On the surface, it may appear that these concerns have merit. Generative AI searches require 15 times more power than a standard search engine query, and can be up to 100 times more power hungry than email.

Yet, while generative AI may initially seem less efficient compared to traditional search engines in terms of power consumption, the time saved and increase in productivity it provides makes it a worthwhile alternative. Specifically, generative AI can save energy and time by providing efficient responses, reducing the need for extensive searches.

Further, improvements in AI model design and algorithmic optimization are expected to help mitigate energy consumption growth. For instance, quantum computing’s¹ ability to exploit the principles of superposition allows it to tackle complex problems with fewer calculations, paving the way for energy savings in AI applications.

Already, the explosive growth in data center and AI-based electricity consumption has led to a resurgence in interest in nuclear power with a focus on smaller localized nuclear power plants designed to support data centers. In addition to nuclear, the promise of a breakthrough in fusion power² offers an almost limitless source of clean energy. There are extensive worldwide efforts (some even aided by AI research) and investment in fusion.

THE BENEFITS (and the efficiency of AI) OUTWEIGH THE IMPACT

Strategic use of generative AI empowers users to gather information efficiently by minimizing reliance on third-party data sources, streamline workflows, and significantly reduce research time. One well written AI prompt and the resulting response can replace multiple, ineffective traditional search requests. Here are a few specific ways AI can benefit businesses and balance the perceived impact from increased power consumption:

1. Enhanced Accuracy and Relevance: Unlike traditional search methods, artificial intelligence leverages natural language processing to understand user intent and context. It also pulls together the predominant wisdom as opposed to just the first page of search results, leading to more accurate and relevant search results. This reduces wasted time spent sifting through irrelevant information.
2. Improved Efficiency and Productivity: By providing more precise answers, AI search allows users to not only find the information they need faster but also ensures that the results they receive are relevant and reliable. This translates to increased employee productivity and reduced time spent troubleshooting search queries.
3. Deeper Knowledge Discovery: AI technology has the ability to identify patterns and connections in data that traditional search methods are likely to miss. This can lead to uncovering valuable nuggets of information and accessing untapped insights, which can foster innovation within organizations.
4. Personalized Search Experience: Advanced AI tools can personalize results based on user data and past searches. This allows employees to find information tailored to their specific needs and roles. Adding curated content, such as technical white papers, can further improve the responses given by the AI model. This can be especially useful for specialized areas like tax, law, or healthcare.
5. Reduced Reliance on Third-Party Sources: By integrating with internal databases and knowledge management systems, AI enables users to locate important information within their organization’s own ecosystem, reducing reliance on external searches. This supports greater accuracy as well as data security, and ultimately cuts down on overall energy consumption.
6. Streamlined Workflows: The right AI tool can integrate with other business applications, enabling seamless access to relevant information within existing workflows. It can even be programmed to trigger Application Programming Interface³ (“API”) connections with other platforms. This can save employees time and effort by eliminating the need to switch between multiple tools or build additional costly user interfaces. It can also improve accuracy and reduce the risk of human error.
7. Reduced Screen Time: According to IDC data, knowledge workers spend an average of 2.5 hours each day searching for information. By providing more accurate and relevant information faster, AI can dramatically reduce the time employees interact with online data sources, which can contribute to lower energy consumption.
8. Reliable, Consistent Information: AI will provide a more creative response and/or a response that is more inclusive of a wider array of data than the first few pages of conventional search results.

CHOOSING THE RIGHT AI TOOL

A carefully selected AI platform can help businesses uncover valuable insights by utilizing faster technology and infrastructure to unearth data points beyond traditional methods of data storage, business intelligence and retrieval. The capability to synthesize massive amounts of data into an extremely well-written and cohesive response to the user immediately offers a level of efficiency and productivity improvements that significantly offset the increased computational requirements and thus energy consumption.

With the ability to analyze documents and pull together key concepts, AI can provide new ways of asking questions and receiving answers that traditional business intelligence techniques cannot. It also has the power to string together ideas and churn through data in ways that were previously untapped.

MARCUM IS LEADING THE WAY

Recognizing the significant opportunities presented by the emerging AI technology, Marcum has been actively investing in AI capabilities over the past few years to empower our clients and services, providing a foundation for future growth.

Marcum launched AskMarcum.ai in early 2024, a secure, Teams-based application offering associates and clients immediate and secure access to cutting-edge AI, including generative AI capabilities. In less than a year of use, Marcum associates have generated thousands of innovative and thoughtful prompts and seen dramatic increases in productivity from the responses received from the generative AI models.

The AI Accelerator Kit from Marcum Technology empowers businesses to unlock productivity through a platform designed for efficiency and responsible AI development practices. We also offer AI Readiness Assessments to help organizations chart their AI journey and AI Education Services to equip leaders with the knowledge to navigate the future of AI with confidence.

Sources

1. Quantum computing is a type of computing that utilizes the principles of quantum mechanics to process information. Unlike traditional computers that use bits (0s and 1s), quantum computers use quantum bits or qubits, which can represent and store multiple states simultaneously, potentially offering exponentially greater computational power for certain tasks.
2. Fusion-based power is a form of energy generation that mimics the process powering the sun, where atomic nuclei combine to form heavier nuclei, releasing vast amounts of energy in the process. It promises a nearly limitless, clean energy source if successfully harnessed.
3. An API (Application Programming Interface) is a set of rules and protocols that allows different software applications to communicate with each other, enabling them to request and exchange data or services.