Microsoft faces scrutiny over AI services for fossil fuel companies

Microsoft, a company known for its public environmental commitments, is facing criticism for quietly selling AI services to fossil fuel giants.

Although Microsoft has committed to being ‘carbon negative’ by 2030, it continues to work with oil companies like ExxonMobil and Chevron to provide the latter with AI technologies that increase oil production.

Microsoft has reportedly created algorithms designed to assist fossil fuel companies in increasing their output, as stated in a report by The Atlantic’s Karen Hao. These AI tools identify the most probable zones to drill in to maximize the oil company’s revenue, such as ExxonMobil. According to the report, a 2022 pitch deck showed that Microsoft had estimated that ExxonMobil could gain an additional $1.4 billion in annual revenue from the use of its AI, $600 million of which would come from improved energy efficiency.

Whistleblowers expose Microsoft’s partnerships with fossil fuel giants

While Microsoft publicly promotes its AI as a driver for sustainability, its collaboration with oil and gas companies remains largely unpublicized.  As noted in the report, internally, some employees have raised concerns about Microsoft’s involvement in the fossil fuel industry.

Holly Alpine, a former Microsoft sustainability program manager who worked at the company for nearly a decade, was one of those who had grown frustrated with the company’s approach. Alpine, who is now against the extraction of fossil fuels, pointed out that Microsoft’s public position on AI for sustainability is not the whole truth.

Microsoft’s carbon-negative pledge conflicts with oil sector partnerships

While Microsoft has pledged to achieve carbon negativity by 2030, the company continues to engage with the fossil fuel industry. The company’s executives have stated that the AI technologies it provides to these firms can assist the latter in cutting down on energy expenses and emissions, thus making the partnership seem like one that promotes sustainable development. 

According to recent statistics, Microsoft’s emissions have risen by up to 40% since it made the carbon-negative commitment in 2020. The biggest share is the scope 3 emissions, which include the products and services that Microsoft buys and the materials that go into its construction projects.

In 2023, the company released 15.4 million metric tons of carbon dioxide equivalent, which is five times more than the annual output of Seattle. Recently, Microsoft pledged $10 billion to renewable energy projects. Additionally, Google recently disclosed that its carbon footprint increased by 50% in the last five years, owing to higher energy usage in data centers. This is even as Google has unveiled its plans to have net zero emissions by 2030.

In its annual environmental report, the search engine giant showed that Greenhouse gas (GHG) emissions were 13% higher in the year 2023 than the previous year, standing at 14.3 metric tonnes.