Generative AI could dramatically increase productivity and transform workloads in many industries. It can be used to respond to questions in customer service chats, create schedules, summarize information, produce Internet content—and more. But generative AI also poses potential risks to people and the environment. For example, the IT equipment that powers generative AI needs a lot of water and electricity to function efficiently and avoid overheating. Also, generative AI could replace workers or be used to create dangerous deepfakes. Our Technology Assessment discusses these and other challenges and offers options for policymakers to consider.