Businesses Embrace Frugal AI to Meet ESG Goals and Cut Energy Use
Businesses are turning to frugal AI to meet their environmental, social, and governance (ESG) goals and comply with regulations. This comes as AI's energy consumption, particularly in cooling data centers, is set to rise significantly in the coming years.
AI's electricity consumption is predicted to reach up to 3.5% of the world's total by 2030, according to Gartner. Frugal AI, which aims to achieve high performance using less processing power and data, is emerging as a solution. It focuses on creating models with smaller datasets and prioritizing energy-efficient algorithms.
Orange Business and its consultants are supporting clients in developing and implementing frugal AI. They prioritize ethical and environmental responsibility, educating companies on choosing the best AI for the task with the least environmental impact. This includes recommending small language models (SLMs) over large language models (LLMs) where possible.
The Corporate Sustainability Reporting Directive (CSRD) may soon require organizations to include AI's energy usage in their ESG reporting. This could make frugal AI not just beneficial, but necessary. Orange Business also supports customers by deploying AI responsibly and minimizing resource usage.
Adopting frugal AI can help businesses meet ESG goals and regulatory demands, while also enhancing cost efficiency. As AI's environmental impact continues to grow, with data center power demand expected to increase by 160% by 2030, the need for frugal AI becomes increasingly timely and necessary.
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