Does AI reduce energy consumption or is it part of the problem?
Artificial Intelligence is increasingly viewed as both a promising tool for the optimization of industrial processes, and as a strain on the energy grid and other natural resources. A group of researchers from the University of Mannheim, Friedrich Schiller University Jena, Paris Lodron University Salzburg, IT:U Austria, University of Bremen and Thünen Institute of Rural Economics have now examined what the rising adoption levels of this technology among firms actually mean for their industries’ regional energy usage. Covering 363 NUTS-3 regions in Germany, or roughly 91 percent of the German districts, over the period of 2012 to 2023, the study combines official energy statistics and patent data with ISTARI web indicators on firm-level AI adoption and sustainability engagement. Their article “Thinking machines, shrinking footprints? The impact of Artificial Intelligence on energy consumption in regions” was published in Energy Economics in July 2026.
“AI adoption can reduce energy consumption. But only if adoption becomes broad and not concentrated only on a few frontrunners. As AI continues to spread, we need to actively shape diffusion, especially in industries and regions that have been slower to adopt.”
Dr. Robert Dehghan | Co-Author and COO of ISTARI