Businesses intrigued as to AI and sustainability link

Over three quarters of businesses (76%) 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.

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%), followed closely by the Middle East (78%), Europe (74%), and developed Asian markets (72%). Notably, the Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%), demonstrate particularly high interest.

Regional Variations in AI Adoption and Sustainability Efforts

Despite this optimism, 59% of businesses acknowledge a 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%), and 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%). Meanwhile, 81% of businesses feel human oversight is needed in guiding the development of digital technologies, including AI tools with the Middle East feeling the strongest at 91%, followed by emerging Asian markets at 83%, Europe at 82% and developed Asian markets at 74%.

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 businesses prioritise those that use renewable energy (51%), maintain energy-efficient data centres (46%), and implement carbon footprint reduction initiatives (42%).

Commitment to Green AI and Open-source Innovation

“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,” said Selina Yuan, President of International Business, Alibaba Cloud Intelligence. “At Alibaba Cloud, we are committed to supporting businesses on their sustainability journeys with scalable and sustainable solutions. By pledging to use 100% clean energy by 2030 and improving the energy efficiency at our global data centres, as well as optimising Generative AI capabilities such as large language models (LLMs) performance, AI can be a powerful tool to improve efficiency and optimise energy consumption.”

Alibaba Cloud has made notable progress in its green cloud initiatives. In the fiscal year ending March 31, 2024, the average power usage effectiveness (PUE) of the company’s self-built data centre's improved to 1.200 from 1.215 the year before, with 56% of the electricity consumed coming from clean sources. Additionally, Alibaba's green computing infrastructure has enabled clients to reduce their emissions by 9.884 million tons, a remarkable increase of 44% year-on-year.

In addition, Alibaba Cloud is at the forefront of democratising AI through its open-source initiatives, making advanced AI technologies accessible and affordable for businesses of all sizes. By releasing cutting-edge open-source models from its proprietary large language model Qwen family, including Qwen2.5-VL and Qwen2.5-1M and its video foundation model Tongyi Wanxiang (Wan), Alibaba Cloud empowers developers to create task-specific AI applications that are both efficient and cost-effective. These open-source models have already inspired over 100,000 derivative models on Hugging Face, showcasing their global adoption and versatility. By promoting smaller parameter models, Alibaba Cloud reduces the cost and energy consumption of AI training and deployment, fostering a collaborative ecosystem that drives energy-efficient innovation.

Surveying 1,300 decision-makers across 13 markets, “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.