Schneider Electric: How will AI Impact Energy Use?

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Schneider Electric says AI could cause energy shortages - Credit: Schneider Electric
A Schneider Electric’s Sustainability Research Institute report shows AI could hurt decarbonisation efforts and will shape energy consumption trajectories

AI has huge potential to benefit sustainability efforts. It can recognise patterns to make efficiency improvements, learn and develop for specific goals and process large amounts of data in real time. 

However, the data centres that power AI’s remarkable abilities consume vast amounts of energy. 

Schneider Electric published research at the International Energy Agency (IEA) Global Conference on Energy and AI that forecasts AI’s impact on energy consumption, allowing for preparations to support this sustainably. 

“The release of our reports comes at a crucial time, as the IEA conference highlights the transformative power of AI in the energy sector,” says Vincent Petit, Climate and Energy Transition Research SVP at Schneider Electric.

Vincent Petit, Climate and Energy Transition Research SVP at Schneider Electric

“As a company and as researchers, we are committed to keep shaping the future of energy and climate solutions.” 

Artificial Intelligence and Electricity: A System Dynamics Approach

Schneider Electric’s Sustainability Research Institute’s report, titled “Artificial Intelligence and Electricity: A System Dynamics Approach”, examines possible scenarios for AI’s energy consumption in the future. 

Rémi Paccou, Director of Schneider Electric’s Sustainability Research Institute, and Prof. Fons Wijnhoven, Associate Professor at the University of Twente, built a system dynamics model that forecasts scenarios for AI electricity demand.

Prof. Fons Wijnhoven, Associate Professor at the University of Twente

The report says that current decisions on AI infrastructure will significantly shape electricity consumption trajectories after 2030.

However, reduced AI electricity consumption does not necessarily indicate sustainable and resilient development.

Unrestricted abundance in AI development could alter existing systems, constrain decarbonisation efforts and generate waste.

Schneider’s report says that mismatched energy demand and infrastructure can lead to localised energy shortages with potential global ripple effects.

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Jason Oxman, President and Chief Executive Officer of the Information Technology Industry Council (ITI), says: “The meteoric rise of artificial intelligence technologies has provided humanity with an incredibly potent tool that can tackle challenges we once thought unsolvable. 

Jason Oxman, President and Chief Executive Officer of the Information Technology Industry Council

“The potential benefits of harnessing AI technology are hard to overstate. AI, like electricity or the automobile, has the capability to completely revolutionise the way we live our lives. 

“But like with any other technology, there are challenges we must address to ensure that AI can be harnessed safely and efficiently.”

What makes sustainable AI?

Schneider Electric’s report provides nine recommendations towards sustainable AI:

  • Build and optimise next-generation AI data centres - Cooling technologies, high-density computing solutions and modern, energy-efficient AI-specific hardware
  • Expand and integrate renewable energy sources and advanced storage solutions - Implementing smart energy management systems that adjust energy usage based on availability and demand and investing in storage technologies such as solid-state batteries 
  • Plan and implement strategic grid capacity enhancements - Collaboration between energy providers, policymakers and AI companies
  • Optimise software efficiency and refine AI model performance - Model pruning, quantisation and the use of lightweight architectures can make AI more efficient
  • Quantify, assess and prioritise AI impact on sustainability - Using evidence-based AI impact quantification methodologies
  • Implement circular economy practices for AI hardware and software - Design hardware for longevity, ease of repair and recyclability and design software for modularity, updatability and cross-platform compatibility
  • Develop and enforce Sustainable AI certification standards - Certification schemes with clear, measurable criteria for energy efficiency and environmental impact
  • Establish and maintain robust AI governance frameworks -  This approach could include a risk-based classification system for AI applications
  • Enhance AI skills and promote digital literacy -  Allocate funding for AI curricula in universities and vocational institutions that integrate sustainability principles.

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