AI growth likely to raise energy consumption: Al Rumayyan

Yasir Al Rumayyan, PIF Governor

Artificial intelligence (AI) plays a role in developing economic sectors, and the growth of AI will increase energy consumption, Governor of the Public Investment Fund (PIF) Yasir Al Rumayyan said.

During the opening of the seventh edition of the Future Investment Initiative (FII) today, Oct. 24, Al Rumayyan explained that there are tremendous technological developments in a short period, indicating that AI may increase the existence of more inclusive societies and lead us to the best sustainable model for development.

He added that international cooperation is very important to achieve this model, as well as continuing to develop vital industries such as health, tourism, renewable energy and others.

PIF Governor pointed out that he is optimistic that there will be an acceleration in development and increased productivity, as the progress of AI will affect global trade in multiple ways, predicting that 70% of companies will adapt to one type of AI in 2030.

The daily energy consumption of ChatGPT is estimated at 564 megawatt/hour, which is identical to the energy consumed by 26,000 American houses per year.

On the other hand, Al Rumayyan said that governments and the private sector cannot continue with the same level of spending, borrowing and investment as before.

In the past 15 years, the global economy has benefited from near-free liquidity, with historically low interest rates spurring growth, innovation, borrowing and investment, he said.

In a high-interest rate environment, both governments and the private sector should set priorities, along with focusing on innovation and technologies at the forefront to accelerate change, he said.