Labor & Employment Law Daily Wrap Up, REPORTS—GAO looks to environmental, human impact of generative AI, (May 12, 2025)

By Patricia K. Ruiz, J.D.

The GAO highlighted lack of accountability, lack of data privacy, cybersecurity concerns, unsafe systems, and unintentional bias as possible causes of negative human impacts.

While generative artificial intelligence (AI) could revolutionize entire industries, dramatically increase productivity, and transform daily tasks, the benefits and risks of AI are unknown or unclear, according to a report by the Government Accountability Office (GAO). The GAO examined potential effects on humans and the environment, as well as possible policy options that may enhance the benefits or mitigate the environmental and human effects of generative AI technologies.

Environmental impacts. The GAO found that most estimates of the environmental impacts of generative AI technologies have focused on quantifying the energy consumed, as well as the associated carbon emissions. Generative AI is expected to be a driving force for data center demand; however, what portion of data center electricity consumption is related to generative AI is unclear. The International Energy Agency found that U.S. data center electricity consumption to make up approximately four percent of U.S. electricity demand in 2022 and estimated that, in 2026, that portion could be six percent. While generative AI uses significant energy and water resources, companies are generally not reporting the details of this consumption.

Human effects. The GAO highlighted five risks and challenges that could result in negative human effects: lack of accountability; lack of data privacy; cybersecurity concerns; unsafe systems; and unintentional bias. However, it is a challenge to make definitive statements about such risks and challenges because of the rapid evolution of generative AI and because of the tendency of private developers to withhold some key technical information.

Policy options. The GAO identified policy options to consider that could enhance the benefits or address the challenges of environmental and human effects of generative AI, including possible actions by policymakers such as Congress, federal agencies, state and local governments, academic and research institutions, and industry. To address the environmental effects of generative AI, the GAO suggested maintaining the status quo; improving data collection and reporting; and encouraging innovation. To address the human effects, the GAO suggested maintaining the status quo, encouraging the use of AI frameworks, and sharing best practices and establishing standards.

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