Artificial intelligence, with its powerful ability to process vast data sets and generate rapid outcomes, can rightfully be linked to complex and statistical simulations at its core. Even though at the time of its inception, it started off as a humble enabler in man's life, today in the twenty-first century there is no doubt about the tremendous expanse of its meaningful allure that has successfully captivated its unsolicited place in almost anything that we can think of all in a short while since its evolution. AI's ability to analyse patterns and leverage vast sets of knowledge has set the stage for upcoming improvements in energy production, conversion, and delivery, which has without doubt, made modern ways of living extremely convenient. However, the rapid advancements of AI carry hidden costs, contributing to environmental degradation in unforeseen ways. This chapter consists of four different aspects of the use and effect of AI such as—electronic waste generation; excessive resource consumption; self-driving cars; and the added pressure on rare earth elements –all of which are keystone components of environmental degradation. Scientists too have come to recognize its negative impacts at an early stage and here we have discussed some conventional practices that such systems generally resort to, along with their estimated outcomes to give the readers a glimpse of how things happen.