Artificial
intelligence
What it is, how it's used, how much energy it needs, what risks experts document and how it's regulated.
01What is AI?
Software that learns patterns from large amounts of data to predict, classify or generate content: text, images, audio or code.
“Generative” AI (such as chatbots) produces new content. Training and running models happens mainly in data centers.3
Training
The model learns patterns from data.
Using (inference)
Each question or task asked of the trained model.
02Pros and cons
The best-documented benefits and harms, each with a figure and its source.
Tap a card to see its source.
Pros
200million proteinsScienceAlphaFold2 predicted the structure of virtually all identified proteins; its creators shared the 2024 Nobel Prize in Chemistry.10
Science and healthSource 10: The Nobel Prize in Chemistry 2024 — Press release — Royal Swedish Academy of Sciences · NobelPrize.org · Oct 9, 2024.
+14 %issues resolved per hourProductivityCustomer-support agents using an AI assistant; novice or less-skilled agents, +34% (study of 5,179 agents).11
Economy and jobsSource 11: Generative AI at Work (Working Paper 31161) — E. Brynjolfsson, D. Li, L. Raymond · NBER; later published in the Quarterly Journal of Economics (2025) · Apr 2023, rev. Nov 2023.
−83 %time on clinical notesMedicineUp to 83% less time writing notes, reported by physicians across several hospital systems.1
Science and healthSource 1: Inside the AI Index: 12 Takeaways from the 2026 Report — Stanford HAI · Apr 13, 2026.
$172billion a yearValue to usersEstimated value of generative AI tools to US consumers by early 2026.1
Economy and jobsSource 1: Inside the AI Index: 12 Takeaways from the 2026 Report — Stanford HAI · Apr 13, 2026.
~5 %of emissions · 2035Climate and energyPossible cut in energy-related emissions from adopting existing AI applications; larger than data center emissions.9
Energy and climateSource 9: Energy and AI — Executive summary — International Energy Agency (IEA) · Apr 2025.
30–50 %shorter outagesPower gridReduction in outage duration with AI-based fault detection.9
Energy and climateSource 9: Energy and AI — Executive summary — International Energy Agency (IEA) · Apr 2025.
No points on this side in this category.
Cons
−20 %jobs, ages 22–25Entry-level jobsDrop in employment of young software developers since 2024, while older colleagues' headcount grows.1
Economy and jobsSource 1: Inside the AI Index: 12 Takeaways from the 2026 Report — Stanford HAI · Apr 13, 2026.
3,443videos in 2025Child abuseAI-generated child sexual abuse videos identified by the IWF; there were 13 in 2024.4
Society and securitySource 4: Harm without limits: AI child sexual abuse material through the eyes of our Analysts (AI CSAM Report 2026) — Internet Watch Foundation (IWF) · 2026.
72,816t CO₂eEnvironmental footprintEstimated training emissions of Grok 4; annual GPT-4o inference water use may exceed the drinking water of 1.2 million people.1
Energy and climateSource 1: Inside the AI Index: 12 Takeaways from the 2026 Report — Stanford HAI · Apr 13, 2026.
40/100transparencyOpacityAverage Foundation Model Transparency Index score (58 the year before).1
Society and securitySource 1: Inside the AI Index: 12 Takeaways from the 2026 Report — Stanford HAI · Apr 13, 2026.
10–100×more false positivesBiasIn face verification, many algorithms erred more on Asian and African American faces than on Caucasian ones (NIST, 2019; varies by algorithm).12
Society and securitySource 12: NIST Study Evaluates Effects of Race, Age, Sex on Face Recognition Software (NISTIR 8280) — National Institute of Standards and Technology (NIST) · Dec 19, 2019.
3×cyberattacks in 4 yearsSecurityCyberattacks on utilities have tripled and AI makes them more sophisticated; AI is also used to defend against them.9
Society and securitySource 9: Energy and AI — Executive summary — International Energy Agency (IEA) · Apr 2025.
No points on this side in this category.
Order does not indicate importance. Several figures come from specific case studies and cannot be generalized to the whole economy. The IEA cautions that AI can help cut emissions but does not replace public policy.
03How it's used
Organizations using AI
% of respondents saying their organization uses AI in at least one function. McKinsey survey cited by the AI Index 2026; self-reported. Move the slider to change year.
| 2024 | 2025 | |
|---|---|---|
| AI | 78% | 88% |
| Gen AI | 71% | 79% |
Source: Stanford AI Index 2026, cap. 42. The AI Index shows earlier years only in a chart; we use the two years with figures stated in the text.
Private AI investment, 2025
Billions of US dollars. China's figure likely understates its spending, since much flows through state funds.
| USD bn | |
|---|---|
| US | 285.9 |
| China | 12.4 |
Source: Stanford AI Index 20261
04Energy: the link to data centers
Electricity use by accelerated servers, used mainly for AI, would grow 30% a year to 2030 in the IEA base case.3
05Documented risks
AI-generated child sexual abuse material
The Internet Watch Foundation (IWF), a UK organization that finds and removes this material, published the 2026 report “Harm without limits”.4
06How it's regulated
Timeline of the EU AI Act and two US laws. Tap a milestone to see what changes.
European UnionIn effect
The phased application timeline starts.5
European UnionIn effect
Prohibited practices and the AI literacy obligation apply.5
United StatesIn effect
Federal law (P.L. 119-12) against non-consensual publication of intimate images, real or AI-generated; platforms must remove them within 48 hours of notice.8
European UnionIn effect
Rules for general-purpose AI models.5
United StatesIn effect
Transparency in Frontier AI Act: large developers publish their safety framework; creates a channel to report critical incidents and protects whistleblowers.7
European UnionIn effect
Amends the AI Act: postpones high-risk rules and adds new prohibitions.6
European UnionIn effect
Most obligations apply, including transparency.5
European UnionUpcoming
Rules for Annex III high-risk systems, postponed by the AI Omnibus.6
European UnionUpcoming
Rules for Annex I high-risk systems (regulated products), postponed by the AI Omnibus.6
07Myth or fact?
1Generative AI reached 53% of the population within three years, faster than the PC or the internet.
Show answer
Fact. That is what the AI Index 2026 reports.1
2The US has the world's highest generative AI adoption.
Show answer
Myth. The US ranks 24th at 28.3%; Singapore reaches 61%.1
3All EU AI Act rules already apply.
Show answer
Myth. High-risk rules were postponed to December 2027 and August 2028.6
4An AI model was recognized with the 2024 Nobel Prize in Chemistry.
Show answer
Fact. Half of the prize went to Demis Hassabis and John Jumper for AlphaFold2, which predicts protein structures.10
08FAQ
What is the AI Index?
Are adoption figures exact?
Does AI use a lot of energy?
Where is online child abuse material reported?
09Sources
- Inside the AI Index: 12 Takeaways from the 2026 ReportStanford HAI · Apr 13, 2026 · Accessed Nov 8, 2026
- AI Index Report 2026 — Chapter 4: Economy [PDF]Stanford HAI · 2026 · Accessed Nov 8, 2026
- Energy and AI — Energy demand from AIInternational Energy Agency (IEA) · Apr 2025 · Accessed Nov 8, 2026
- Harm without limits: AI child sexual abuse material through the eyes of our Analysts (AI CSAM Report 2026)Internet Watch Foundation (IWF) · 2026 · Accessed Nov 8, 2026
- Timeline for the Implementation of the EU AI ActComisión Europea · AI Act Service Desk · Accessed Nov 8, 2026
- AI Omnibus enters into forceComisión Europea · Shaping Europe's digital future · Jul 27, 2026 · Accessed Nov 8, 2026
- Governor Newsom signs SB 53, advancing California's world-leading artificial intelligence industryOffice of the Governor of California (gov.ca.gov) · Sep 29, 2025 · Accessed Nov 8, 2026
- S.146 — TAKE IT DOWN Act (Public Law 119-12)Congress.gov · May 19, 2025 · Accessed Nov 8, 2026
- Energy and AI — Executive summaryInternational Energy Agency (IEA) · Apr 2025 · Accessed Nov 8, 2026
- The Nobel Prize in Chemistry 2024 — Press releaseRoyal Swedish Academy of Sciences · NobelPrize.org · Oct 9, 2024 · Accessed Nov 8, 2026
- Generative AI at Work (Working Paper 31161)E. Brynjolfsson, D. Li, L. Raymond · NBER; later published in the Quarterly Journal of Economics (2025) · Apr 2023, rev. Nov 2023 · Accessed Nov 8, 2026
- NIST Study Evaluates Effects of Race, Age, Sex on Face Recognition Software (NISTIR 8280)National Institute of Standards and Technology (NIST) · Dec 19, 2019 · Accessed Nov 8, 2026
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