A new guesstimate for corporate AI emissions

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on HEATMAP or enjoy below:

🗞️ Driving the news: Watershed, a carbon accounting software company, has proposed a new methodology to help businesses estimate emissions linked to their artificial intelligence use
• The framework aims to address a growing challenge: companies are increasingly using AI, but major AI providers disclose limited information about the energy consumption and carbon footprint of their models

🔭 The context: AI emissions are difficult to calculate because energy use depends on multiple factors, including model size, task complexity, location of computing infrastructure, electricity sources, and whether training or hardware manufacturing emissions are included
• Watershed recommends moving from simple per-query estimates toward a “per-token” approach, reflecting how AI systems process information and how many providers already price their services

🌍 Why it matters for the planet: Rapid AI expansion is increasing demand for data centers, electricity, and computing infrastructure
• Without better transparency, companies cannot accurately measure or reduce the environmental impact of AI adoption
• More consistent carbon accounting could help businesses select more efficient models, optimize usage, and align digital transformation with climate goals

⏭️ What’s next: As regulators and investors increasingly request AI-related emissions data, companies are expected to demand greater transparency from technology providers
• Watershed’s framework could serve as an interim methodology until AI developers provide more detailed, model-specific energy and emissions data

💬 One quote: “We wanted to give them something that was more defensible.” — John Bistline, Head of Science, Watershed

📈 One stat: Google has estimated that a median Gemini text prompt consumes approximately 0.24 watt-hours of energy and produces around 0.03 grams of CO₂ equivalent, according to research published by the company.

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