From greater flexibility to a sense of ownership and the hope of financial gain, solopreneurship feels like the new American dream. However, there is a hidden price to that dream that has nothing to do with the endless hustle and bustle that comes with being both a business owner and the only employee of that company. It is the undeniable cost to the planet.
In 2025 approximately 41 million companies in the US were run by one person who is both the owner and the only employee. As AI allows solopreneurs to automate a growing number of tasks, the technology means that small businesses – from gigs like content creation to event planning or even niche work like dog grooming or jewelry making, and more – can absolutely thrive with a team of just one. While in the past an individual with an idea might have required an entire team to turn that idea into real cash flow, it is now completely feasible (and extremely popular) to do this with the help of AI.
That applies to solopreneur Dan Mazei, who was previously communications and marketing leader for organizations such as Reebok, Tinder, Activision Blizzard and Ford, and was a longtime agency leader for major clients such as Nintendo and Unilever. Now Mazei runs his own business as the founder and director of All Tangled Roots, a marketing consultancy for brands, using AI. Mazei tells Fast Company that AI is crucial to its business model because it can “level the playing field for a solo service provider versus a sea of heavily staffed agencies” doing the same type of work.
The same goes for Samantha Levitin, a solopreneur and founder of Levitin Collective, a boutique PR firm serving lifestyle, wellness, hospitality and consumer brands in New York. (She’s also a new mother to a 15-month-old baby.) Levitin says AI allows her to manage the dreaded mental strain that comes with running a business while she’s a parent. “Starting my own business meant I knew I would be doing everything myself, and AI helped fill gaps that would normally require a small team, which I was used to,” says Levitin.
The solopreneur adds that she started building her business during her maternity leave, and that it has ultimately given her both “flexibility and balance.” She says: “I deliberately designed the business small… and AI gives me back time and mental space so I can focus on what matters most in my field: creative thinking, building relationships and hands-on work with clients.”
Yet we can’t talk about the incredible power of AI to turn dreams into reality without talking about the costs. While there can be many challenges that come from running a one-stop business – such as working 24 hours a day or the significant financial risks – there are also clear environmental costs that are largely ignored.
According to a 2024 MIT report on the environmental impacts of AIthe energy demands resulting from both training and the use of AI are enormous and constantly growing. In North America, electricity demand rose from 2,688 megawatts at the end of 2022 to 5,341 megawatts the following year, mainly due to growing demand for generative AI. And experts worry that we simply aren’t concerned enough about that grim reality.
Noman Bashir, lead author of the environmental impact report, and a Computing and Climate Impact Fellow at the MIT Climate and Sustainability Consortium (MCSC) and a postdoc at the Computer Science and Artificial Intelligence Laboratory (CSAIL), says: through MITthat the impact is enormous, but that “the everyday user doesn’t think about it too much.” According to Bashir, the reason is twofold. “The ease of use of generative AI interfaces and the lack of information about the environmental impacts of my actions mean that as a user I don’t have much incentive to cut back on my use of generative AI,” Bashir explains.
Jonathan Schaeffer, an AI researcher and CEO of a startup called Kind, agrees. Schaefer tells Fast Company that “not enough attention is paid to the hidden environmental costs” of the widespread technology. “AI tools can significantly increase energy consumption, especially from the massive data centers required to support cloud-based AI systems,” the CEO explains. “These data centers, which house thousands of servers running AI models, consume large amounts of electricity, much of which still comes from non-renewable sources, contributing significantly to CO2 emissions.”
Schaefer adds that the technology also comes with hidden financial costs that most people don’t realize they ultimately have to pay themselves. “In many jurisdictions, the capacity to power these data centers contributes to a significant increase in the price of electricity, a cost that is often passed on to consumers.”
Furthermore, the CEO says that data centers require more than energy to function, but “they also need cooling systems to prevent overheating,” which would further increase their carbon footprint. According to Bloombergthat analyzed data from DC Byte, electricity costs in areas near “significant data center activity” rose 267% in one month compared to data from five years earlier.
Kevin Gast, co-founder and CEO of VKater, a next-generation water treatment company committed to using advanced technologies to address global water challenges, is particularly concerned about the pace at which AI is developing. “When you multiply millions of daily AI interactions between companies around the world, you see a significant environmental impact that most people are simply not aware of,” Gast tells Fast Company. “Data centers already use billions of gallons of water every year, and as AI becomes more embedded in daily operations, that demand is only increasing. We are seeing increasing pressure on freshwater resources in certain regions, especially where facilities overlap with areas that already manage water.” According to one 2025 Global Survey from Arizona State UniversitySince 2002, freshwater supplies have been drying up at an unprecedented rate.
On the other hand, Gast says solutions are being developed almost as quickly. “We see serious investments in closed water recycling systems, advanced treatment technologies and strategic placement of facilities in regions with better water availability and a natural cooling climate.” He continues: “The challenge now is to accelerate that progress to keep pace with the speed at which AI is being adopted in every sector.”
While more and more individuals are certainly turning to AI to run their businesses, that doesn’t mean they aren’t all completely in the dark about its impact. Mazei says that on a human level, he is cautious about the “overreach” of big tech companies, such as “potentially integrating someone else’s code into our most personal choices.” Still, the solopreneur says technology has helped him “choose a professional path” that he “didn’t believe was feasible just a few years ago.”
As the cost of living continues to rise and even talented and driven professionals struggle to find well-paying jobs, solo entrepreneurs may find that putting aside their environmental concerns is a small price to pay for achieving the American dream that might otherwise seem difficult to achieve.
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