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US Environmental, Social, and Governance Considerations for AI Companies — Status Quo and Practical Next Steps

By Betty M. Huber and Michael H. Rubin (Latham & Watkins LLP)

Artificial intelligence (AI) has become an indispensable tool, but with the rapid advancement in the technology has come a rise in electricity demand, drawing regulatory attention on the natural resources that AI requires.

Within this context, companies and policymakers are considering how AI may contribute both to sustainable solutions and environmental impacts. For companies that have committed to environmental targets and are simultaneously advancing AI and seeking power to do so, managing both goals can lead to a competitive advantage.