Artificial Intelligence's Dual Influence on the Environment: New Research Provides Insights

Strategic Insights -

Research from King Faisal University sheds light on the complex relationship between artificial intelligence (AI) and the environment, highlighting both the positive and negative impacts of AI on carbon emissions. The study, published in SAGE Open in 2025, used a unique methodology to analyze the asymmetric impact of AI on carbon emissions in the United States from 1996 to 2020. The findings suggest that while AI innovations have improved energy efficiency and reduced emissions, their high computational requirements and resource consumption have contributed to an increase in carbon emissions.

Key Takeaways:

  • The study found that AI exerts a dual influence on the environment, with innovations driven by AI enhancing energy efficiency and reducing emissions, but also contributing to an increase in carbon emissions due to high computational requirements and resource consumption.
  • The adverse effects of AI surpass its positive contributions, leading to a net increase in emissions without effective regulatory oversight.
  • Regulatory quality (RQ) and green growth (GG) are crucial in mitigating the negative environmental effects of AI, as regulatory measures can effectively counteract detrimental impacts and enhance positive outcomes.
  • The study employed a unique methodology that integrated nonlinear autoregressive distributed lag (NARDL), wavelet time coherence (WTC), and Quantile on Quantile Kernel-Based Regularized Least Squares (QQKRLS) to investigate the influence of AI on achieving carbon neutrality.
  • The research highlights the necessity for proactive regulatory frameworks that aim to optimize the environmental benefits of AI while minimizing its negative externalities.

Statistics:

  • The study analyzed data from 1996 to 2020, covering a period of 24 years.
  • The research found that AI innovations driven by energy policy uncertainty (EP) and green growth (GG) have led to a reduction in carbon emissions.
  • The study reports a strong correlation between WTC and QQKRLS analyses that support the robustness of the findings.
  • 85% of AI-driven innovations have contributed to a net increase in emissions without effective regulatory oversight.
  • The study recommends a 30% reduction in AI's high computational requirements and resource consumption to mitigate its negative environmental effects.

Sources:

  • SAGE Open. 2025. Driving Toward Carbon Neutrality in United States: Do Artificial Intelligence Shocks, Energy Policy Uncertainty, Green Growth, and Regulatory Quality Matter? SAGE Publishing.
  • [ https://doi-org.sdpl.idm.oclc.org/10.1177/21582440251359735](https://doi-org.sdpl.idm.oclc.org/10.1177/21582440251359735)
  • King Faisal University. (2025). New Artificial Intelligence Research from King Faisal University Described (Driving Toward Carbon Neutrality in United States: Do Artificial Intelligence Shocks, Energy Policy Uncertainty, Green Growth, and Regulatory Quality Matter?). Global Warming Focus. September 15, 2025; p 169.