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By 2025, the AI market is projected to swell to a $190 billion industry. In the UAE alone, spending on AI is expected to record a CAGR of 25.2%, increasing from $76.6 million in 2019 to $368.3 million by 2025, according to market studies.

However, AI systems, by design, are resource-hungry, requiring massive power and water usage for their operations. Indeed, the data centers used to run them account for about 1 to 1.5% of global electricity consumption, according to the International Energy Agency (IEA). For example, 1.5 million servers running at full capacity would consume at least 85.4 terawatt-hours of electricity annually — more than what many small countries use in a year, according to studies. This trend can set off alarm bells for those fighting climate change.

From a marketing perspective, the world’s current geopolitical instability stands to limit companies’ promotions of their AI offerings. AI demands deeper investments before RoIs begin to show actual gains. With strong economic headwinds egged by high global lending interest rates, the AI acceleration is likely to face major bumps on the road ahead.

It will be interesting to see how AI takes on this two-pronged challenge in the years to come.

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