Majority of businesses intrigued by the potential of artificial intelligence (AI) in achieving sustainability goals whilst energy consumption concerns persist, Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, said in its latest survey report Monday.

According to the “Tech-Driven Sustainability Trends and Index 2024” report, over three quarters of businesses (76 percent) across Asia, Europe and the Middle East are intrigued by the potential of digital technologies, including AI and cloud computing in driving sustainable development.

However, the substantial energy consumption associated with these technologies is still reflecting a key barrier to broader adoption, as 61 percent of respondents still express concerns over the matter.

This interest in the potential of AI, cloud computing and other advanced digital technologies to support sustainable development varies across regions, with emerging Asian markets leading the way (83 percent), followed closely by the Middle East (78 percent), Europe (74percent), and developed Asian markets (72 percent).

Notably, the Philippines (91 percent), Singapore (84 percent), Indonesia (81 percent), and Thailand (81 percent), demonstrate particularly high interest.

Despite this optimism, 59 percent businesses acknowledge gap in understanding how digital technology can assist in achieving sustainability goals with Asia leading at 63 percent, followed by Europe at 61 percent and the Middle East at 45 percent.

Around two thirds (62 percent) of executives believe their organizations are lagging in adopting cloud computing and AI to accelerate progress towards sustainability goals.

This concern is particularly noted in Singapore (80 percent), the Philippines (77 percent), and Japan (75 percent) and Hong Kong SAR (75 percent), indicating a pressing need for organizations to accelerate their technological adoption to advance sustainability.

Overall, 82 percent of businesses agree that sustainable development in technology is paramount for their companies, with markets like Singapore (93 percent), the Philippines (91 percent), and Indonesia (89 percent) leading the charge.

Companies increasingly recognize the multifaceted benefits of adopting digital technologies for sustainability including cost savings, improved operational efficiencies,
and enhanced compliance with environmental, social, and governance (ESG) regulations.

AI and machine learning are viewed as the most crucial digital technologies for advancing corporate sustainability, with businesses in the Middle East (52 percent) placing greater emphasis on their importance compared to Europe (41 percent), emerging Asian markets (40 percent) and developed Asian markets (36 percent).

Meanwhile, 81 percent of businesses feel human oversight is needed in guiding the development of digital technologies, including AI tools with the Middle East feel the strongest at 91 percent, followed by emerging Asian markets at 83 percent, Europe at 82 percent and developed Asian markets at 74 percent.

However, the survey reveals a notable concern: 61 percent of respondents fear that the high energy consumption associated with digital technologies may hinder widespread AI adoption.

This concern is even higher in Singapore (85 percent), the Philippines (77 percent) and Hong Kong SAR (75 percent).

Furthermore, 71 percent of businesses believe that the substantial energy consumption of digital technologies such as powering AI may outweigh its benefits with the highest concerns from Singapore (86 percent), the Philippines (84 percent) and Malaysia (81 percent).

The report also highlights the importance of selecting technology providers that prioritize sustainability.

When selecting a “green” cloud provider, approximately half of businesses prioritize those that use renewable energy (51 percent), maintain energy-efficient data centers (46 percent), and implement carbon footprint reduction initiatives (42 percent).

“With feedback from decision-makers across 13 markets, the survey report sheds light on the current attitudes and challenges businesses face in adopting AI and cloud computing for sustainability,

“By pledging to use 100 percent clean energy by 2030 and improving the energy efficiency at our global data centers, as well as optimizing Generative AI capabilities such as large language models (LLMs) performance, AI can be a powerful tool to improve efficiency and optimize energy consumption,” said Selina Yuan, President of International Business, Alibaba Cloud Intelligence.

The report involved 1,300 business leaders and senior management from various industries, including technology and communications, finance, infrastructure, renewable resources, healthcare, transportation, retail, and manufacturing.

Respondents were located across 13 markets in Asia (Indonesia, Malaysia, the Philippines, Thailand, Hong Kong SAR, Japan, Singapore and South Korea), Europe (France, Germany, and United Kingdom), and the Middle East (Saudi Arabia and the United Arab Emirates).

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