GAO Report Warns of Generative AI's Uncertain Environmental and Human Effects

United States Government Accountability Office
Report to Congressional Requesters
April 2025

Technology ASSESSMENT

Artificial Intelligence: Generative AI’s Environmental and human effects
GAO-25-107172

Why GAO Conducted This Study
generative AI consumes large amounts of energy and water. It also holds the potential to displace workers, contribute to the spread of false Information, and create or heighten national SECurity risks. The benefits and risks of generative AI remain unclear, and estimates of its effects vary widely due to a lack of available data. The continued expansion of generative AI products and services raises questions about the scale of both its benefits and its risks.

GAO was asked to conduct a technology assessment of generative AI's effects, with a particular focus on its risks. This report examines: (1) the potential environmental effects of generative AI technologies, (2) the potential human effects of these technologies, and (3) policy options that could enhance the benefits or mitigate the environmental and human effects of generative AI.

What GAO Found
Generative artificial intelligence could revolutionize entire industries. In the nearer term, it may Dramatically increase Productivity and transform daily tasks across many sectors. However, both its benefits and its risks—including environmental and human effects—are unknown or unclear.

Generative AI uses significant energy and water resources, but companies are Generally not reporting details of this consumption. Most estimates of environmental effects have focused on quantifying the energy consumed, and the associated carbon emissions, required to train a generative AI model. Estimates of water consumption by generative AI are limited. Generative AI is expected to be a driving force for data center demand, but the specific portion of Data Center electricity consumption related to generative AI is unclear. According to the International Energy Agency, U.S. data center electricity consumption represented APProximately 4 percent of total U.S. electricity demand in 2022 and could reach 6 percent by 2026.

While generative AI may bring beneficial effects for people, GAO highlights five risks and challenges that could result in negative human effects on society, culture, and indiViduals. For example, unsafe systems may produce ouTPUts that compromise safety, such as inaccurate information, undesirable content, or the enabling of malicious behavior. However, making DeFinitive statements about these risks is difficult because generative AI is evolving rapidly, and private developers do not disclose some key technical information.

Policy Options to Enhance Benefits or Address Challenges
GAO identified several policy options for consideration that could enhance the benefits or address the challenges related to the environmental and human effects of generative AI. These options identify possible ACTions for policymakers, which include Congress, federal agencies, state and local governments, academic and research institutions, and industry. Policymakers could also choose to maintain the status quo, taking no additional action beyond current efforts.

Policy Options for Environmental Effects

• Maintain Status Quo: Continue technical innovations in hardware, algorithms, and models, along with current federal agency efforts. While technical innovations may address some challenges without additional resources, current efforts may not fully address the challenges given existing knowledge gaps and uncertain future demand.

• Improve Data Collection and Reporting: EncouRAGe industry to share data on the environmental effects of building and disposing of equipment. Developers could provide details such as model information, infrastructure used for training and Operation, energy consumption, carbon emissions, and water consumption. Addressing gaps in understanding environmental effects can assist policymakers, though industry may be reluctant to release proprietary information.

• Encourage Innovation: Government could encourage the creation of more resource-efficient models and training techniques. Industry and researchers could increase efforts to develop more efficient hardware and infrastructure to reduce energy and water use. The development of such technical methods may require improved data collection and reporting by industry.

Policy Options for Human Effects

• Maintain Status Quo: Government policymakers are taking various actions aimed at underStanding and addressing the human effects of artificial intelligence. However, existing policy actions, some of which are not fully implemented, may not fully address the specific human effects challenges of generative AI identified in this report.

• Encourage Use of AI Frameworks: Developers could create acceptable use policies for their products. Government could encourage the use of available Frameworks, such as GAO’s AI Accountability Framework and the National Institute of Standards and Technology’s AI risk management Framework. These frameworks help manage risks and increase public transparency, though internal testing and external review methods can be insufficient or costly.

• Share Best Practices and Establish Standards: Industry or standards-developing organizations could identify areas where best practices and standards would be most beneficial across different sectors and applications using generative AI. This could require adopting knowledge-sharing mechanisms, though building consensus from many public- and private-sector stakeholders can be time- and resource-intensive.

This report is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO.

Original PDF link: https://www.gao.gov/assets/gao-25-107172.pdf