As the adoption of artificial intelligence (AI) accelerates across various sectors, a new report reveals that corporate implementation may be outpacing necessary governance and oversight. Researchers are sounding alarms about an “emerging gap,” suggesting that businesses are deploying advanced AI systems without fully grasping their wider social and environmental implications.
Data from the Thomson Reuters Foundation, featured in sustainability outlet Edie, highlights that while organizations are swiftly integrating AI into their operations, their transparency and oversight practices are lagging. The Foundation’s AI Company Data Initiative analyzed publicly available disclosures from 1,000 companies across 13 global sectors. Findings indicate that fewer than half—48%—of the companies reviewed disclosed any formal AI strategy or guidelines. Of those that did, most relied on broad principles such as “ethical,” “safe,” and “trustworthy” without providing substantial details to back these claims.
Alarmingly, 97% of firms with AI strategies did not assess the energy usage or emissions linked to their systems. Furthermore, more than two-thirds failed to evaluate broader societal impacts beyond their immediate user base, neglecting variables such as worker effects, service accessibility, and public trust. While many companies maintain management-level oversight for AI, only 41% have made their AI policies readily accessible to employees or required acknowledgment from staff.
“Our data shows an emerging gap between adoption and governance, as companies race to harness the potential of AI,” said Katie Fowler, director of responsible business at the Thomson Reuters Foundation, in a statement. This gap raises important questions about the long-term implications of unchecked AI growth.
The environmental concerns associated with AI are particularly pressing. Advanced AI models demand significant energy resources for both training and operational use. The International Energy Agency has projected that electricity consumption from data centers driving AI could more than double by 2030, partially fueled by fossil energy sources. Additionally, these data centers consume large quantities of water for cooling purposes.
Despite these challenges, AI holds promise as a tool for societal advancement. Applications range from optimizing power grids and forecasting renewable energy output to enhancing supply chain efficiency and assisting agriculture in navigating weather extremes. However, without meaningful transparency and regulatory frameworks, the potential benefits may be overshadowed by increased energy demands, water scarcity, security risks, and unintended social consequences.
As regulatory measures like the European Union’s AI Act are set to be implemented in the coming years, companies ignoring the associated risks may face regulatory, reputational, and financial repercussions. Furthermore, they could be held accountable by future generations for the misuse of a technology that is becoming increasingly central to modern life.
In response to these concerns, the AI Company Data Initiative, developed with backing from the United Nations Educational, Scientific, and Cultural Organization, offers a free tool designed to help companies track their AI usage, benchmark governance practices, and align with global ethical standards. The construction of data centers and the management of AI practices are expected to be key issues in upcoming midterm elections, putting pressure on candidates to advocate for sensible regulations. Voters may demand that their representatives ensure innovation occurs alongside effective safeguards against the downsides of artificial intelligence.
See also
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Africa’s AI Governance Strategy: $1.5T Economic Potential with Ethical Frameworks by 2030
