The head of Google’s parent company, Alphabet, Sundar Pichai, has issued a stark warning: if the booming artificial intelligence (AI) sector crashes, no company will be immune, not even tech giants like Google.
In a recent interview with the BBC, Pichai said that “irrationality” has been a major driver of the AI investment surge, which fueled a massive tech market rally earlier this year. However, recent declines in global stock markets have highlighted fears that the AI boom may be unsustainable.
Pichai also addressed long-standing concerns about AI, including accuracy issues, job displacement, soaring energy demands, and climate impact. He revealed that AI consumed 1.5% of global electricity last year, according to the International Energy Agency, and warned that energy usage could reach 200 gigawatts by 2030—equivalent to Brazil’s entire annual electricity consumption—with roughly half in the U.S. alone.
Massive competition to build AI data centres, requiring countless chips and advanced cooling systems, is adding even more pressure. Pichai called for urgent action on energy innovation and infrastructure development. Despite the challenges, Alphabet remains committed to carbon neutrality by 2030, though AI may delay some climate goals.
On the workforce front, Pichai said AI will trigger societal disruptions affecting roles across industries, including top executives. But he believes those who embrace AI tools will thrive. Alphabet itself reported $100 billion in quarterly revenue in October, thanks to AI expansion and global rollout of AI features in Google Search and its Gemini models.
