As AI is now becoming a critical infrastructure, the “AI’s Hidden Dependencies” report from Arthur D. Little’s Blue Shift Institute anticipates that those “hidden dependencies” will increasingly expose businesses to three systemic vulnerabilities:
“AI feels cheap today because its real economic and environmental costs are essentially hidden. Once dependence sets in, those costs will surface. And companies should be strategically prepared,” says Dr. Albert Meige, global director of Arthur D. Little’s Blue Shift Institute.
Key takeaways:
· With AI’s adoption and usage expected to remain on its growth trajectory, so is its strain on resources.
· The report identifies three main areas of dependency:
Environmental impacts, including emissions due to AI’s heavy energy usage and the manufacture of related hardware.
Energy supply, including increased electricity demand and strain on the grid.
Compute infrastructure, including supply chain choke points and dependencies on dominant providers.
· The report anticipates that those “hidden dependencies” will increasingly expose businesses to three systemic vulnerabilities:
Economic instability as the real costs of AI become apparent
Sustainability risk as companies lose control of their carbon footprint
Strategic lock-in as supplier dependency constrains competitiveness
