Sustainability: Maximize tokens per kWh
Disruption in the Strait of Hormuz has sent shockwaves through energy markets. In Europe, natural gas prices are up almost 50 percent from the end of February, while storage sites are expected to refill to just 76 percent of capacity by October — their lowest level since 2011 heading into winter.
Meanwhile, increased AI use puts pressure on the energy grid; electricity consumption from European data centers is expected to increase by 49-187 percent to 2030. We must therefore avoid the perverse incentives of ‘tokenmaxxing’ and, rather, take a more frugal approach that seeks to maximize the tokens per kWh. Using ‘right-sized’ AI models that might be smaller or industry-specific, employing smarter infrastructure and decarbonizing data centers can help.
Speed is the new currency
The pace of change is undoubtedly a challenge. From conversations with CEOs across different industries, I know many feel overwhelmed with the pace of change. But this is not business as usual anymore; this is the moment to accelerate business transformation.
The good news is that, with clean data and a well-defined use case, the time it takes to move from AI pilot to scaled solution is compressing. Across industries, our clients see the return on investment crystallizing: financial crime and ‘know your customer’ in banking; autonomous supply chains and demand forecasting in consumer goods; digital twins and predictive maintenance in automotive; and citizen services and contact centers in public services.
From conversations with CEOs across different industries, I know many feel overwhelmed with the pace of change. But this is not business as usual anymore; this is the moment to accelerate business transformation.
Indeed, such is the momentum that I am more confident about European competitiveness today than I was a year ago — even in the difficult macroeconomic context — because the conversation has changed. Twelve months ago, many organizations were still trying to understand the potential of AI. Today, the focus is on how to implement it in a way that both captures value and strengthens Europe’s position.
As AI continues to accelerate, Europe’s competitiveness hinges ever more on the speed of execution.