Yes, obviously AI is emitting way too much. It shouldn’t even be producing 0.2% of global emissions, let alone 2%. My main grievance is that no one ever talks about improving industrial and agricultural processes even though they produce around 29% of emissions and 20% of emissions respectively.
According to this analysis (probably a biased/motivated source but not one worth lying about actual output for its members to make economic planning around), each bushel produces 2.9 gallons of ethanol, 14.5 lbs of distillers’ grain, and 0.9 lbs of corn oil.
Distillers grain is a pretty useful animal feed, with about the same amount of calories, and a higher protein content, than regular corn per pound.
So if a 54 lb bushel of corn that has been used for ethanol production still has about 14-20 lbs of grain equivalent (depending on how important that higher protein content is for the animals being fed), then some percentage of that corn being used for ethanol should still be counted towards animal feed. Depending on how you want to account for the oil, too, there’s probably some feed value there, too.