Businesses unprepared for AI's mounting energy demands

A recent survey commissioned by SambaNova Systems has revealed a significant gap in businesses' readiness to handle the escalating power demands posed by artificial intelligence (AI) technologies.

The study, conducted in December 2024, surveyed 2,012 business leaders from Europe and the United States, highlighting that while 49.8% of leaders expressed concern about AI's energy consumption, only a small percentage actively monitor it.

According to the research, only 13% of organisations track their AI systems' power consumption. SambaNova Systems' CEO, Rodrigo Liang, remarked, "The findings reveal a stark reality: businesses are rushing to adopt AI, but aren't prepared to manage its energy impact. Without a proactive approach to more efficient AI hardware and energy consumption, particularly in the face of increasing demand from AI workflows, we risk undermining the very progress AI promises to deliver." He further projected that by 2027, more than 90% of leaders will be concerned with AI's power demands and will monitor consumption closely.

The survey indicated that while 70% of business leaders are aware of the energy-intensive nature of training large language models, only 59.7% understand the significant power demands of AI inference—running the models once they are trained.

Energy efficiency is becoming a strategic priority for many organisations, with 72% acknowledging the substantial energy required for AI and 56.5% recognising the importance of addressing these demands in strategic planning. Despite this awareness, only 13% of organisations currently monitor their AI power usage.

Among the survey's respondents, the preferred methods for reducing AI's power consumption include optimising models (40%), adopting energy-efficient hardware (39%), and investing in renewable energy (35%).

Liang further commented, "The rapid pace of AI adoption underscores a critical need for enterprises to align their strategies with the power requirements of AI deployment. As businesses integrate AI, addressing energy efficiency and infrastructure readiness will be essential for long-term success. Customers are turning to SambaNova for help deploying energy efficient solutions."

The research also highlighted that AI adoption is currently higher in the United States, with 36% of companies reporting widespread use compared to 25% in the European Union. This finding underscores the varying levels of AI integration across different regions.

The rise of agentic AI, which refers to AI systems capable of making autonomous decisions, is amplifying power concerns, with companies experiencing increased stakeholder pressure to enhance AI energy efficiency. Approximately 42% of respondents expect these demands to grow shortly.

Overall, the research emphasises the growing need for businesses to proactively manage their AI systems' energy consumption to avoid undermining the technology's potential benefits. The findings suggest that bridging the awareness gap through education and strategic planning will be essential to ensuring AI's sustainable development in commercial entities.