There is a technological company named ABC Incorporated which is the
second largest worldwide, situated in the Third World. You are the Chief
Executive Officer and the majority shareholder of this company. The fast
technological improvements have raised worries among environmental activists,
regulatory authorities, and the general public over the sustainability of this
scenario. You confront substantial issues about the business’s environmental
footprint. In 2023, your organization had a significant increase of 48% in
greenhouse gas emissions compared to the levels recorded in 2019. The
significant rise in energy consumption is mainly due to the surging energy
requirements of your data centers, fuelled by the exponential expansion of
Artificial Intelligence (AI). AI-powered services need much more computational
resources and electrical energy compared to conventional online activities,
notwithstanding their notable gains. The technology’s proliferation has led to a
growing concern over the environmental repercussions, resulting in an increase
in warnings. AI models, especially those used in extensive machine learning
and data processing, exhibit much greater energy consumption than
conventional computer tasks, with an exponential increase.
Although there is already a commitment and goal to achieve net zero
emissions by 2030, the challenge of lowering emissions seems overwhelming as
the integration of AI continues to increase. To achieve this goal, substantial
investments in renewable energy use would be necessary. The difficulty is
exacerbated by the competitive environment of the technology sector, where
rapid innovation is essential for preserving market standing and shareholders’
worth. To achieve a balance between innovation, profitability and
sustainability, a strategic move is necessary that is in line with both, business
objectives and ethical obligations.

1) What is your immediate response to the challenges posed in the above
case ?
2) Discuss the ethical issues involved in the above case.
3) Your company has been identified to be penalized by technological
giants. What logical and ethical arguments will you put forth to convince
about its necessity ?
4) Being a conscience being, what measures would you adopt to maintain
balance between AI innovation and environmental footprint?

Model Answer