While most businesses are excited about artificial intelligence (AI) and cloud computing’s potential to drive sustainability, concerns over energy consumption are slowing widespread adoption, the latest survey report from Alibaba Cloud finds.
The “Tech-Driven Sustainability Trends and Index 2024” report, commissioned by Alibaba Cloud, found that 76% of businesses across Asia, Europe, and the Middle East are intrigued by the potential of advanced digital technologies, including AI and cloud computing, to achieve sustainability goals. However, 61% of respondents expressed concerns that the high energy consumption associated with these technologies would prevent companies from fully embracing AI adoption.
“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,” Selina Yuan, President of International Business, Alibaba Cloud Intelligence said.
Regional Variations in AI Adoption
Interest in leveraging AI and cloud computing for sustainability varies significantly by region. Emerging Asian markets are leading the charge, with 83% of businesses showing enthusiasm, followed by the Middle East (78%), Europe (74%), and developed Asian markets (72%). Countries like the Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%) are particularly keen on this front.
Despite this optimism, 59% of businesses acknowledge a gap in understanding how digital technology can aid in achieving sustainability goals. This gap is most significant in Asia (63%), followed by Europe (61%) and the Middle East (45%). Approximately two-thirds (62%) of executives believe their organizations are behind in adopting cloud computing and AI to accelerate sustainability progress, with Singapore (80%), the Philippines (77%), Japan (75%), and Hong Kong SAR (75%) showing the highest levels of concern.
Overall, 82% of businesses view sustainable technology development as crucial, led by markets like Singapore (93%), the Philippines (91%), and Indonesia (89%). Companies see multiple benefits in the adoption, such as cost savings, operational efficiency, and ESG compliance.
AI and machine learning are widely viewed as the most crucial technologies for advancing corporate sustainability. Businesses in the Middle East (52%) place the greatest emphasis on their importance, compared to Europe (41%), emerging Asian markets (40%), and developed Asian markets (36%). However, 81% of businesses believe human oversight is essential in guiding the development of digital technologies, including AI tools. This sentiment is strongest in the Middle East (91%), followed by emerging Asian markets (83%), Europe (82%), and developed Asian markets (74%).
Energy Consumption Concerns
A major barrier to AI adoption is its energy footprint. 61% percent of respondents fear that the high energy consumption associated with digital technologies could hinder widespread adoption. This concern is particularly acute in Singapore (85%), the Philippines (77%), and Hong Kong SAR (75%). Additionally, 71% of businesses believe that the energy consumption of technologies like AI may outweigh their benefits, with Singapore (86%), the Philippines (84%), and Malaysia (81%) expressing the most substantial concern.
The report highlights the growing importance of selecting technology providers that prioritize sustainability. When choosing a “green” cloud provider, approximately half of businesses prioritize those that use renewable energy (51%), maintain energy-efficient data centers (46%), and implement carbon footprint reduction initiatives (42%).
The “Tech-Driven Sustainability Trends and Index 2024” report was conducted by Yonder Consulting, with support from The Purpose Business. The survey collected feedback from 1,300 business leaders and senior management across 13 markets in Asia, Europe, and the Middle East, spanning industries such as technology, finance, healthcare, transportation, retail, and manufacturing.
Previous findings in the report indicated that while 80% of businesses have set sustainability targets, 53% continue to rely on traditional measurement methods, such as emails and spreadsheets, with only one-third using digital tools, including cloud-based platforms.
The report introduced a sustainability index ranking markets based on the percentage of businesses with sustainability goals. Singapore leads with a score of 91%, followed by Germany (89%) and Indonesia (86%). This index serves as a tool for businesses to assess their progress and identify areas for improvement.
Alibaba Cloud’s Commitment to Sustainability Through Green Initiatives
“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 centers, as well as optimizing Generative AI capabilities such as large language models (LLMs) performance, AI can be a powerful tool to improve efficiency and optimize energy consumption,” Yuan added.
Alibaba Cloud has made significant progress in its green initiatives. In the fiscal year ending March 31, 2024, its self-built data centers’ average power usage effectiveness (PUE) improved to 1.200 from 1.215 the previous year, with 56% of 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 44% year-on-year increase.
Alibaba Cloud is also leading the charge in 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 QwQ-32B, Qwen2.5-VL and Qwen2.5-1M, as well as 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 inspired over 100,000 derivative models on Hugging Face, showcasing their global adoption and versatility.
