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Unpacking Generative AI’s $43 Billion Price Tag On Equity & Energy

By Jennifer Mathews

  • Generative AI consumes 33 times more energy compared to to machines running task-specific software
  • In the next two decades Generative AI could widen the racial wealth gap by $43B

As the world increasingly relies on artificial intelligence, we must examine its implications for society, mainly through the lens of the Black community. Training large language models, such as OpenAI’s GPT, demands enormous energy resources—nearly 1,300 megawatt-hours per model, equivalent to the annual electricity consumption of approximately 130 U.S. homes. With generative AI potentially consuming up to 33 times more energy than task-specific software, we are facing an environmental and societal crisis.

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Why This Matters: The convergence of AI development, energy consumption, and the racial wealth gap presents a critical intersection for business and culture. The financial burden of maintaining these energy-intensive systems is significant, but the social cost is even higher. As AI continues to integrate into various sectors, its economic benefits will likely be unevenly distributed, further widening the racial wealth gap. Generative AI could add $43 billion annually to this disparity over the next two decades, exacerbating economic inequalities that have plagued Black communities for generations.

As AI technology advances, it is essential to address its broader impacts. AI using 1,300 megawatt-hours per model implies that the resources and benefits are concentrated only on those with the financial muscle. The wealth gap therefore widens. Policymakers and industry leaders must work together to create equitable solutions that mitigate the environmental and social costs of AI. Investing in renewable energy sources to power AI systems sustainably and implementing policies that ensure the economic benefits of AI are shared more equitably across all communities is a start. The future of AI should not be one where technological progress comes at the expense of widening economic and social divides. We must prioritize inclusive growth and sustainability to ensure that AI serves as a tool for empowerment rather than exacerbation of existing inequalities.

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What’s Next: Addressing this convergence requires a multifaceted approach. Regulatory frameworks are needed to enforce sustainable energy practices within AI development, alongside investing in education and workforce training for Black communities, which could help bridge the wealth gap. By prioritizing inclusive and sustainable AI practices, we can leverage technology for equitable growth rather than deepening the divide.

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