A new survey report, “Tech-Driven Sustainability Trends and Index 2024,” commissioned by Alibaba Cloud, shows that 76% of businesses across Asia, Europe, and the Middle East are interested in using digital technologies like AI and cloud computing to drive sustainability. However, 61% of respondents worry about the high energy consumption associated with these technologies, which remains a key challenge for broader adoption.
Why it Matters: Digital technologies have the potential to enhance sustainability efforts, but concerns over energy consumption could slow down their adoption. Addressing this issue is crucial for businesses aiming to balance innovation with environmental responsibility.
Interest in AI, cloud computing, and other digital technologies varies by region, with emerging Asian markets leading at 83%, followed by the Middle East (78%), Europe (74%), and developed Asian markets (72%). The Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%) show the highest interest levels.
Regional Trends in AI Adoption for Sustainability
Despite the growing interest, 59% of businesses acknowledge a knowledge gap in how digital technologies can help them achieve sustainability goals. Asia leads this concern at 63%, followed by Europe (61%) and the Middle East (45%). Additionally, 62% of executives believe their organizations are behind in adopting AI and cloud computing to accelerate sustainability efforts, with Singapore (80%), the Philippines (77%), Japan (75%), and Hong Kong SAR (75%) expressing the most concern.
Overall, 82% of businesses recognize the importance of sustainability in technology. Singapore (93%), the Philippines (91%), and Indonesia (89%) lead in prioritizing sustainability in their tech strategies. Companies see benefits in adopting digital technologies, including cost savings, improved operational efficiency, and compliance with Environmental, Social, and Governance (ESG) regulations.
Energy Concerns and the Need for Sustainable AI
AI and machine learning are viewed as critical technologies for corporate sustainability, with businesses in the Middle East (52%) placing more importance on them compared to Europe (41%), emerging Asian markets (40%), and developed Asian markets (36%).
However, energy consumption concerns persist. About 61% of respondents fear that the high energy demand of digital technologies could hinder AI adoption. This concern is particularly high in Singapore (85%), the Philippines (77%), and Hong Kong SAR (75%). Additionally, 71% of businesses believe the energy use of AI and cloud computing could outweigh the benefits, with Singapore (86%), the Philippines (84%), and Malaysia (81%) expressing the strongest concerns.
Demand for Green Technology Providers
Businesses are prioritizing sustainability when selecting cloud providers. Around 51% prefer providers using renewable energy, 46% look for energy-efficient data centers, and 42% value carbon footprint reduction initiatives.
Alibaba Cloud is committed to green AI and sustainability. In the fiscal year ending March 2024, the company improved the power usage effectiveness (PUE) of its data centers from 1.215 to 1.200, with 56% of its energy coming from clean sources. Its green computing infrastructure helped clients reduce emissions by 9.884 million tons, a 44% increase year-over-year.
Open-Source AI for Energy Efficiency
Alibaba Cloud is also promoting energy-efficient AI by making its advanced AI models open-source. Its Qwen family of models, including Qwen2.5-VL and Qwen2.5-1M, and the video foundation model Tongyi Wanxiang, have supported the development of over 100,000 derivative models on Hugging Face. The company’s focus on smaller parameter models aims to reduce the cost and energy consumption of AI training and deployment.
Alibaba Cloud’s “Tech-Driven Sustainability Trends and Index 2024” was conducted by Yonder Consulting, with support from The Purpose Business. The survey collected responses from 1,300 business leaders across 13 markets between May 10 and June 19, 2024. Participants came from industries including technology, finance, infrastructure, healthcare, transportation, retail, and manufacturing. The survey covers markets in Asia (Indonesia, Malaysia, the Philippines, Thailand, Hong Kong SAR, Japan, Singapore, South Korea), Europe (France, Germany, the UK), and the Middle East (Saudi Arabia, UAE).
How do you think businesses can balance AI adoption with sustainability goals?
