Key Risks, Opportunities, and Questions for Financial Sector Leaders
It is estimated that the energy demands of the AI industry will increase tenfold by 2026, and this is a key sustainability and compliance risk that management and boards at financial sector organizations need to consider carefully as they position their organizations for success in the AI age.
This report examines the energy demands of the fast-growing AI sector, and points to business and regulatory developments that suggest energy consumption from AI should be a key consideration for the financial sector. It explores the balance between harnessing AI’s transformative potential and mitigating its environmental impacts, with a special focus on the role of Scope 2 and Scope 3 emissions in crafting a sustainable future.
The report presents risks, opportunities and recommendations for organizations at different levels of AI adoption and investment in sustainability. As financial institutions integrate AI into their operations, the report also proposes questions that management and boards should ask about AI and energy consumption.