AI usage to increase energy demand by 4.2 times by 2028
During Schneider Electric’s Innovation Day, industry leaders agreed that despite the challenges posed by artificial intelligence (AI)—such as its high energy consumption and job automation—its adoption continues to grow.
According to shared data, 82% of business leaders have launched AI initiatives, although only 17% have fully integrated these tools into their operations.
Adoption of Artificial Intelligence.
At the event, the company showcased to its clients the benefits of leveraging AI to advance the energy transition and improve operational efficiency.
One of the technology’s greatest promises is the reduction of CO₂ and greenhouse gas emissions by 5% to 10%, in addition to optimizing energy demand, monitoring energy use, and reducing waste during transmission.
Despite concerns about high energy consumption—which is projected to increase 4.2 times by 2028—the sector is already working on solutions to promote more sustainable development.
Schneider Electric recommends that industries adopt five key actions to minimize AI’s environmental impact:
- Develop more efficient hardware capable of operating with lower energy consumption.
- Implement small, optimized AI models that maintain performance without requiring extensive resources.
- Decentralize computing to reduce reliance on high-energy-consuming data centers.
- Utilize AI on mobile devices, thereby decreasing the need for cloud-based processing.
- Promote responsible consumption by reducing unnecessary usage and raising awareness about the environmental impact of these technologies.
Vision and Projected Benefits.
This perspective is analyzed by Javier Ortiz, CEO of the Andean Cluster at Schneider Electric:
“Artificial intelligence solves bigger problems than it creates. Systems will become increasingly efficient, and energy consumption will continue to decline. We are facing a tool that empowers humanity, so we must implement these technological solutions to stay competitive and automate processes. With responsible consumption and proper implementation, all industries can benefit from these technologies, enabling us to drive the energy transition and improve efficiency.”
Ortiz also highlighted that AI usage has enabled more efficient data collection: 90% of the available information has been gathered in just the last two years, facilitating more informed decision-making.
Generative artificial intelligence is estimated to generate between 2.6 and 4.4 trillion dollars, broadly benefiting multiple industrial sectors.
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