← All questionsGS4 · 2024 · Case Studies — Private Sector ·AI Growth vs Emissions at ABC Inc (Case)
QUESTION 7
GS4
20 marks

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

WRITE IN
14 min
250 words

What the examiner wants

As CEO of ABC Inc, whose emissions rose 48% due to AI data centres, respond to the challenge, identify ethical issues, argue your case to critics, and balance AI innovation with the environment.

Case studyName the stakeholders and the issues, weigh the options, and say what you would do and why.

Demand-wise check

  1. 1(a) Immediate response: accept responsibility, transparent disclosure, emission audit, energy-efficiency review of data centres≈50 words
  2. 2(b) Issues: profit vs planet, intergenerational justice, honesty of net-zero claims (greenwashing), shareholder vs stakeholder duty≈50 words
  3. 3(c) Arguments: AI also cuts emissions elsewhere; developing-country company needs room to grow; commitment to a credible transition plan≈50 words
  4. 4(d) Measures: renewable power purchase, efficient chips and cooling, model efficiency, carbon-aware computing, public reporting≈50 words

Open in about 30 words and close in about 30.

Answer plan

Address each sub-part in order: responseIssuesArgumentsMeasuresConclusion on responsible innovation

Where marks usually go

  • Skipping one of the four sub-parts
  • Arguments in (c) that are only business-driven and not ethical

Draw this

  • Balance scale: innovation and profit vs emissions and planet

Value addition

  • FrameworkSEBI's Business Responsibility and Sustainability Report (BRSR) requires top listed companies to disclose emissions.SEBI
  • ThinkerHans Jonas's 'imperative of responsibility': act so that effects are compatible with the permanence of genuine human life.Hans Jonas, The Imperative of Responsibility (1979)

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