Over 76% of businesses across Asia, Europe and the Middle East are intrigued by the potential of digital technologies, including AI and cloud computing in driving sustainable development, according to the latest survey report titled “Tech-Driven Sustainability Trends and Index 2024”, commissioned by Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group. However, the substantial energy consumption associated with these technologies is still reflecting a key barrier to broader adoption, as 61% of respondents still express concerns over the matter.
The survey highlights Malaysia’s evolving stance on AI adoption and sustainability, revealing both enthusiasm and caution among businesses. Specifically
- 76% of Malaysian businesses are actively adopting digital technologies to accelerate sustainability progress, with 77% intrigued by AI’s potential to drive sustainability innovation.
- 62% of Malaysian businesses acknowledge the gap in understanding how digital technology can assist in achieving sustainability goals
- 81% of businesses believe that the substantial energy consumption of digital technologies such as powering AI may outweigh its benefits
- 75% cite security risks as a major barrier to adopting advanced digital solutions more broadly.
Regional Variations in AI Adoption and Sustainability Efforts
Despite this optimism, 59% of businesses acknowledge the gap in understanding how digital technology can assist in achieving sustainability goals with Asia leading at 63%, followed by Europe at 61% and the Middle East at 45%. Around two thirds 62% of executives believe their organisations are lagging in adopting cloud computing and AI to accelerate progress towards sustainability goals. This concern is particularly noted in Singapore 80%, the Philippines 77%, Japan 75% and Hong Kong SAR 75%, indicating a pressing need for organisations to accelerate their technological adoption to advance sustainability.
Overall, 82% of businesses agree that sustainable development in technology is paramount for their companies, with markets like Singapore 93%, the Philippines 91%, and Indonesia 89% leading the charge. Companies increasingly recognise 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% placing greater emphasis on their importance compared to Europe 41%, emerging Asian markets 40% and developed Asian markets 36%.
However, the survey reveals a notable concern: 61% 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%, the Philippines 77% and Hong Kong SAR 75%. Furthermore, 71% 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%, the Philippines 84% and Malaysia 81%.
The report also highlights the importance of selecting technology providers that prioritise sustainability. When selecting a “green” cloud provider, approximately half of the businesses prioritise those that use renewable energy 51%, maintain energy-efficient data centers 46%, and implement carbon footprint reduction initiatives 42%.
Malaysian Businesses Prioritise AI and Machine Learning for Sustainability but Face Adoption Challenges
The survey reveals 88% of Malaysian businesses agree it is important to the company that technology is developed sustainably. To add to the concerns highlighted earlier, 68% believe companies are lagging in cloud computing and AI adoption to meet these goals. This hesitation is driven by barriers such as knowledge gaps 38%, cost constraints 30%, and lack of technical capabilities 31%.
89% of business leaders acknowledge technology’s pivotal role in achieving global sustainability targets with Malaysian companies ranking AI/Machine Learning 46%, Collaboration and Communication tools 34%, and IoT 33% as the top three digital technologies critical to advancing corporate sustainability goals. When selecting technology providers, Malaysian businesses prioritise cost-effectiveness 52%, strong customer support 48%, and data privacy commitments 40% highlighting the key factors that influence their digital adoption strategies.
Conducted with 1,300 decision-makers across 13 markets, including Malaysia, “Tech-Driven Sustainability Trends and Index 2024” aims to provide valuable insights into the evolving landscape of corporate sustainability. The survey report underscores the essential role of technology in driving impactful change, while highlighting the need for businesses to adopt AI and cloud computing responsibly to address energy consumption concerns and bridge the gap in sustainability efforts.
