76% of businesses across Asia, Europe and the Middle East are exploring AI and cloud computing for sustainability, but 71% worry that high energy consumption could outweigh the benefits. Concerns over lagging adoption and the need for human oversight remain key challenges.
According to a survey commissioned by Alibaba Cloud, 76% of firms in Asia, Europe and the Middle East want to use AI and cloud computing to support sustainable development. However, concerns about these technologies’ high energy consumption remain a key obstacle to broader adoption.
The report ‘Tech-Driven Sustainability Trends and Index 2024’ highlighted that 71% of firms, including those in Malaysia, believe the energy required to power AI and other digital technology outweighs the benefits.
Regional interest and adoption gaps
The interest in AI and cloud computing as drivers of sustainability differs by region. Emerging Asian markets showed the highest interest (83%), followed by the Middle East (78%), Europe (74%), and developed Asian markets (72%). Businesses in the Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%) expressed a particularly strong interest in these technologies.
Despite the growing interest, many businesses struggle to understand how digital technologies can help them achieve their sustainability goals. About 59% of organisations acknowledged this gap, with Asia leading at 63%, followed by Europe (61%), and the Middle East (45%). Furthermore, 62% of executives admitted that their companies are lagging in the adoption of AI and cloud computing to speed sustainability efforts.
Singapore (80%), the Philippines (77%), Japan (75%), and Hong Kong (75%) reported the highest levels of concern over lagging adoption rates.
Human oversight and energy consumption concerns
According to the report, 81% of firms believe that human oversight is crucial for directing the development of AI and other digital tools. Support for this view was highest in the Middle East (91%), followed by emerging Asian markets (83%), Europe (82%), and developed Asian markets (74%).
However, consumption of energy remains a key issue. Approximately 61% of respondents expressed concern that AI and cloud computing’s high energy requirements might impede adoption. Singapore (85%), the Philippines (77%), and Hong Kong (75%) had the highest levels of worry.
Moreover, 71% of businesses worry that the energy demands of AI could outweigh its benefits. This concern was particularly pronounced in Singapore (86%), the Philippines (84%), and Malaysia (81%).
Selecting sustainable technology providers
The report also explored how businesses are prioritising sustainability when selecting technology providers. About 51% of businesses said they prefer cloud providers that use renewable energy, 46% prioritised energy-efficient data centres, and 42% favoured providers that implement carbon reduction initiatives.
AI and machine learning were identified as the most valuable digital technologies for advancing corporate sustainability. Businesses in the Middle East (52%) placed the highest importance on AI and machine learning, followed by Europe (41%), emerging Asian markets (40%), and developed Asian markets (36%).
Survey background
The survey was conducted by Yonder Consulting with support from The Purpose Business, a sustainability consultancy. It gathered insights from 1,300 business leaders and senior executives between May 10 and June 19, 2024. Respondents represented industries such as technology, finance, healthcare, transportation, and retail from 13 markets, including Indonesia, Malaysia, the Philippines, Thailand, Hong Kong, Japan, Singapore, South Korea, France, Germany, the UK, Saudi Arabia and the UAE.
The report highlighted the need for businesses to accelerate AI and cloud adoption to meet sustainability goals, while balancing efficiency with environmental impact.
