Well, that depends. Very inefficient code tends to only be used when absolutely needed. If an LLM becomes ten times faster at answering simple prompts, it may very well be used a hundred times more as a result, in which case electricity use will go up, not down. Efficiency gains commonly result in doing way more with more, not more with less.
Energy used for lighting didn't decrease when the world moved to LED lights which use much less energy - instead we just used more lighting everywhere, and now cities are white instead of yellow.
Very true, but in recent years feature development has taken precedence over efficiency. VP of whatever says hardware is cheap, software engineers are not.
First, efficient code is going to use less electricity, and thus, fewer resources will need to be consumed.
Second, efficient code means you don't need to be constantly upgrading your hardware.