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A MAJORITY OF BUSINESSES INTRIGUED BY THE POTENTIAL OF AI IN ACHIEVING SUSTAINABILITY GOALS
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DESPITE THIS OPTIMISM, 59 % OF BUSINESSES ACKNOWLEDGE A GAP IN UNDERSTANDING HOW DIGITAL TECHNOLOGY CAN ASSIST IN ACHIEVING SUSTAINABILITY GOALS.
VER THREE-QUARTERS of
O 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, a 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
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