Applications and Impact

Societal, Ethical, Environmental Impact

Ethical Impact: Algorithmic Biases

AI algorithms are trained from interactions and data. When the source data contains inherent biases, the algorithm will also be trained to be biased, and spread these biases in operation. Biased training data can cause lack of information or spread inaccurate data. When algorithms incorporate societal biases, their use in different areas like finance, healthcare, the justice system, or employment, can produce discriminatory outcomes (Jonker & Rogers, 2024). 

Ethical Impact: Transparency

AI algorithms can become very complex, and can stray from their intended use. In some cases, developers create systems so elaborate that even the creators cannot fully understand the systems decision-making processes (Huriye, 2023).

The lack of transparency with accountability for the algorithm’s behavior and outcomes presents an ethical dilemma. This idea is known as the “black box” phenomenon, where the user or developer can see inputs and outputs, but the inner workings are incomprehensible (Blouin, 2023). 

Figure 3. The AI black box problem (Liquidity Provider, 2024).

Environmental Impact: Energy Consumption & Data Centers

Data centers that focus on AI operations need substantial power resources. In North America alone, consumption reached 2,688 megawatts in 2022, grew to 5,431 megawatts in 2023, and is estimated to reach 1,050 terawatt-hours in 2026 (Zewe, 2025). Water consumption in data centers is also a growing concern, with smaller data centers using about 18,000 gallons of water per day, while major data centers operated by companies like Google, use about 550,000 gallons per day (Pinheiro Privette, 2024).

Example: Analysis of 2023-2024 data showed that ChatGPT consumes about 40 million kilowatt-hours per day (Wright, 2025). Given that the average American home uses 10,791 kilowatt-hours annually, ChatGPT’s single-day energy usage could power about 3,700 American homes for a year(Marsh, 2023).

Relevance Today

AI algorithms are present everywhere in modern-day digital life, as anyone who owns a smartphone is regularly interacting with these systems through Google search, Apple Intelligence, and social media platforms like TikTok, Instagram, and Facebook to name a few. Even though these algorithms are integrated in everyday life for the majority of the population, there is limited understanding of how these algorithms are trained and how they deliver content. Most users are not aware that they are training these algorithms every day through their daily phone usage. 


Currently, over 60% of the world uses social media, with the average individual using social media for over two hours per day. Understanding how these algorithms work is important for being digitally aware (Backlinko Team, 2025). 

Statistic: Most popular social networks worldwide as of February 2025, by number of monthly active users (in millions) | Statista
Figure 4. Most popular social networks worldwide (Dixon, 2025).