Over three-quarters of businesses (76 per cent) across Asia, Europe, and the Middle East are intrigued by the potential of digital technologies, including artificial intelligence (AI) and cloud computing, in driving sustainable development, according to the latest survey report commissioned by Alibaba Cloud.
However, the report titled ‘Tech-Driven Sustainability Trends and Index 2024’ highlighted that the substantial energy consumption associated with these technologies remains a key barrier to broader adoption, while 71 per cent of businesses, including those from Malaysia, believe that the substantial energy consumption of digital technologies, such as powering AI, may outweigh its benefits.
Interest in AI, cloud computing, and other advanced digital technologies to support sustainable development varies across regions, with emerging Asian markets leading the way (83 per cent), followed closely by the Middle East (78 per cent), Europe (74 per cent), and developed Asian markets (72 per cent). Notably, the Philippines (91 per cent), Singapore (84 per cent), Indonesia (81 per cent), and Thailand (81 per cent) demonstrated particularly high interest.
Despite this optimism, 59 per cent of businesses acknowledge a gap in understanding how digital technology can assist in achieving sustainability goals, with Asia leading at 63 per cent, followed by Europe (61 per cent) and the Middle East (45 per cent). Around two-thirds (62 per cent) of executives believe their organisations are lagging in adopting cloud computing and AI to accelerate progress toward sustainability goals.
This concern is particularly noted in Singapore (80 per cent), the Philippines (77 per cent), Japan (75 per cent), and Hong Kong (75 per cent), indicating a pressing need for companies to accelerate technological adoption to advance sustainability.
The survey was independently conducted by business consulting firm Yonder Consulting, with advisory, design, and analytical support from The Purpose Business, a sustainability consultancy. The survey, conducted from May 10 to June 19, 2024, gathered feedback from 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 from 13 markets across Asia (Indonesia, Malaysia, the Philippines, Thailand, Hong Kong, Japan, Singapore, and South Korea), Europe (France, Germany, and the United Kingdom), and the Middle East (Saudi Arabia and the UAE). In this survey, developed Asian markets refer to Hong Kong, Japan, Singapore, and South Korea, while emerging Asian markets include Indonesia, Malaysia, the Philippines, and Thailand.
AI and machine learning were viewed as the most crucial digital technologies for advancing corporate sustainability, with businesses in the Middle East (52 per cent) placing greater emphasis on their importance compared to Europe (41 per cent), emerging Asian markets (40 per cent), and developed Asian markets (36 per cent).
Meanwhile, 81 per cent of businesses believe human oversight is needed in guiding the development of digital technologies, including AI tools, with the Middle East expressing the strongest support at 91 per cent, followed by emerging Asian markets at 83 per cent, Europe at 82 per cent, and developed Asian markets at 74 per cent.
However, the survey revealed a notable concern – 61 per cent 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 per cent), the Philippines (77 per cent), and Hong Kong (75 per cent).
Furthermore, 71 per cent 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 per cent), the Philippines (84 per cent), and Malaysia (81 per cent).
The report also highlighted the importance of selecting technology providers that prioritise sustainability.
When choosing a “green” cloud provider, approximately half of the businesses prioritised those that use renewable energy (51 per cent), maintain energy-efficient data centres (46 per cent), and implement carbon footprint reduction initiatives (42 per cent).
