WisdomTree
thematics-11.jpg

The environmental impact of AI: a case study

Published 15 June 2023

Christopher Gannatti, CFA
Christopher Gannatti, CFA

Global Head of Research

In our previous blog, Will AI workloads consume all the world’s energy?, we looked at the relationship between increasing processing power and an increase in energy demand, and what this means for artificial intelligence (AI) from an environmental standpoint. In this latest blog, we aim to further illuminate this discussion with a case study of the world’s biggest large language model (LLM), BLOOM.

Case study on environmental impact: BLOOM

An accurate estimate of the environmental impact of an LLM being run is far from a simple exercise. One must understand, first, that there is a general ‘model life cycle.’ Broadly, the model life cycle could be thought of as three phases1:

Inference: This is the phase when a given model is said to be ‘up-and-running.’ If one is thinking of Google’s machine translation system, for example, inference is happening when the system is providing translations for users. The energy usage for any single request is small, but if the overall system is processing 100 billion words per day, the overall energy usage could still be quite large.

Training: This is the phase when the parameters of a model have been set and the system is exposed to data from which it is able to learn such that outputs in the inference phase are judged to be ‘accurate’. There are cases where the greenhouse gas emissions impact for training large, cutting-edge models can be comparable to the lifetime emissions of a car.

Model development: This is the phase when developers and researchers are seeking to build the model and will tend to experiment with all sorts of different options. It is easier to measure the impact of training a finished model that becomes public, as opposed to seeking to measure the impact of the research and development process, which might have included many different paths prior to getting to the finished model that the public actually sees.

Therefore, the BLOOM case study focuses on the impact from training the model.

  • BLOOM is trained on 1.6 terabytes of data in 46 natural languages and 13 programming languages.
  • Note, at the time of the study, Nvidia did not disclose the carbon intensity of this specific chip, so the researchers needed to compile data from a close approximate equivalent setup. It’s an important detail to keep in mind, in that an accurate depiction of the carbon impact of training a single model requires a lot of information and, if certain data along the way is not disclosed, there must be more and more estimates and approximations (which will impact the final data).

Figure 1: Summary statistics from training the BLOOM model

Source: Luccioni et al. “Estimating the Carbon Footprint of BLOOM, a 176B Parameter Language Model.” ARXIV.org. Submitted 3 November 2022.

If AI workloads are always increasing, does that mean carbon emissions are also always increasing2?

Considering all data centres, data transmission networks, and connected devices, it is estimated that there were about 700 million tonnes of carbon dioxide equivalent in 2020, roughly 1.4% of global emissions. About two-thirds of the emissions came from operational energy use. Even if 1.4% is not yet a significant number relative to the world’s total, growth in this area can be fast.

Currently, it is not possible to know exactly how much of this 700 million tonne total comes directly from AI and machine learning. One possible assumption to make, to come to a figure, is that AI and machine learning workloads were occurring almost entirely in hyperscale data centres. These specific data centres contributed roughly 0.1% to 0.2% of greenhouse gas emissions.

Some of the world’s largest firms directly disclose certain statistics to show that they are environmentally conscious. Meta Platforms represents a case in point. If we consider its specific activities:

  • Overall data centre energy use was increasing 40% per year from 2016.
  • Overall training activity in machine learning was growing roughly 150% per year.
  • Overall inference activity was growing 105% per year.
  • But Meta Platforms’ overall greenhouse gas emissions footprint was down 90% from 2016 due to its renewable energy purchases.

The bottom line is, if companies just increased their compute usage to develop, train and run models—increasing these activities all the time—then it would make sense to surmise that their greenhouse gas emissions would always be rising. However, the world’s biggest companies want to be seen as ‘environmentally conscious’, and they frequently buy renewable energy and even carbon credits. This makes the total picture less clear; whilst there is more AI and it may be more energy intensive in certain respects, if more and more of the energy is coming from renewable sources, then the environmental impact may not increase at anywhere near the same rate.

Conclusion—a fruitful area for ongoing analysis

One of the interesting areas for future analysis will be to gauge the impact of internet search with generative AI versus the current, more standard search process. There are estimates that the carbon footprint of generative AI search could be four or five times higher, but looking solely at this one datapoint could be misleading. For instance, if generative AI search actually saves time or reduces the overall number of searches, in the long run, more efficient generative AI search may help the picture more than it hurts3.

Just as we are currently learning how and where generative AI will help businesses, we are constantly learning more about the environmental impacts.

1 Source: Kaack et al. “Aligning artificial intelligence with climate change mitigation.” Nature Climate Change. Volume 12, June 2022.

2 Source: Kaack et al., June 2022.

3 Source: Saenko, Kate. “Is generative AI bad for the environment? A computer scientist explains the carbon footprint of ChatGPT and its cousins.” The Conversation. 23 May 2023.

Related blogs

+ 4 takeaways from EmTech Digital's AI conference

+ The end of the SaaSacre and the rise of generative AI

+ Tap into the AI revolution with WisdomTree

Related products

+ WisdomTree Artificial Intelligence UCITS ETF - USD Acc (WTAI/INTL)

About the contributor

Christopher Gannatti, CFA
Christopher Gannatti, CFA

Global Head of Research

Christopher Gannatti began at WisdomTree as a Research Analyst in December 2010, working directly with Jeremy Schwartz, CFA®, Director of Research. In January of 2014, he was promoted to Associate Director of Research where he was responsible to lead different groups of analysts and strategists within the broader Research team at WisdomTree. In February of 2018, Christopher was promoted to Head of Research, Europe, where he was based out of WisdomTree’s London office and was responsible for the full WisdomTree research effort within the European market, as well as supporting the UCITs platform globally. In November 2021, Christopher was promoted to Global Head of Research, now responsible for numerous communications on investment strategy globally, particularly in the thematic equity space. Christopher came to WisdomTree from Lord Abbett, where he worked for four and a half years as a Regional Consultant. He received his MBA in Quantitative Finance, Accounting, and Economics from NYU’s Stern School of Business in 2010, and he received his bachelor’s degree from Colgate University in Economics in 2006. Christopher is a holder of the Chartered Financial Analyst Designation.

Best Workspaces - GPTW UK 2024
Best Workspaces for Development - GPTW UK 2024
Best Workspaces for Women - GPTW UK 2024
Best Workspaces in Financial Services & Insurance - GPTW UK 2024
Important Risk Information

Jurisdictions in the European Economic Area (“EEA”): This website and its content has been provided by WisdomTree Ireland Limited, which is authorised and regulated by the Central Bank of Ireland.


Jurisdictions outside of the EEA: This website and its content has been provided by WisdomTree UK Limited, which is authorised and regulated by the United Kingdom Financial Conduct Authority.

The price of any Shares or the value of an investment in ETPs may go up or down and an investor may not get back the amount invested. Past performance is not a reliable indicator of future performance. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.

Please click here for our full disclaimer.

© 2026 WisdomTree, Inc. All Rights Reserved