Businesses Across Asia, Europe, and the Middle East Recognize the Potential of Digital Technologies for Sustainable Development

A new study titled “Tech-Driven Sustainability Trends and Index 2024,” commissioned by Alibaba Cloud, reveals that 76% of businesses across Asia, Europe, and the Middle East are increasingly focused on leveraging digital technologies like AI and cloud computing to drive sustainable development. However, concerns about the substantial energy consumption associated with these technologies remain a key barrier, with 61% of survey participants expressing worry about this issue.

The study highlights that emerging Asian markets are leading the way in adopting digital technologies for sustainability, with 83% of businesses in this region showing strong interest. The Middle East follows closely at 78%, with Europe at 74%, and developed Asian markets at 72%. Notable countries showing high interest include the Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%).

Businesses in the Middle East, at 52%, expressed the greatest belief in the role of AI and machine learning for advancing corporate sustainability. Europe followed at 41%, emerging Asian markets at 40%, and developed Asian markets at 36%. Furthermore, 81% of businesses believe human oversight is necessary in guiding the development of AI tools, with the Middle East exhibiting the highest agreement at 91%.

Despite the growing interest in digital technologies for sustainability, 59% of businesses acknowledge a gap in understanding how these technologies can support sustainability goals, with Asia leading at 63%, Europe at 61%, and the Middle East at 45%. In addition, 62% of executives believe their organizations are falling behind in adopting cloud computing and AI for sustainability, with markets like Singapore (80%), the Philippines (77%), Japan (75%), and Hong Kong SAR (75%) facing particular challenges.

The survey also highlights that 82% of businesses agree that sustainability in technology is vital to their success. Markets such as Singapore (93%), the Philippines (91%), and Indonesia (89%) are leading this charge. Many companies are seeing significant benefits from adopting digital technologies for sustainability, including cost savings, improved operational efficiencies, and better compliance with Environmental, Social, and Governance (ESG) regulations.

However, concerns over energy consumption remain, with 61% of businesses worrying that the energy costs of digital technologies, especially AI, could outweigh their benefits. This concern is particularly high in Singapore (85%), the Philippines (77%), and Hong Kong SAR (75%).

The report also emphasizes the importance of selecting technology providers that prioritize sustainability. When choosing a “green” cloud provider, half of businesses focus on those using renewable energy (51%), maintaining energy-efficient data centers (46%), and implementing carbon footprint reduction initiatives (42%).

Commitment to Green AI and Open-Source Innovation

Selina Yuan, President of International Business at Alibaba Cloud, noted, “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. At Alibaba Cloud, we are committed to supporting businesses on their sustainability journeys with scalable and sustainable solutions.”

Alibaba Cloud has made significant strides in its green cloud initiatives. In the fiscal year ending March 31, 2024, the company improved its power usage effectiveness (PUE) to 1.200 from 1.215 the previous year, with 56% of the electricity consumed sourced from clean energy. Additionally, Alibaba’s green computing infrastructure has helped clients reduce emissions by 9.884 million tons, a 44% year-on-year increase.

In addition to its green cloud efforts, Alibaba Cloud is at the forefront of democratizing AI through open-source initiatives. The company’s release of cutting-edge models from its Qwen family, including Qwen2.5-VL, Qwen2.5-1M, and its video foundation model Tongyi Wanxiang (Wan), empowers developers to create efficient and cost-effective AI applications. These models have inspired over 10,000 derivative models on Hugging Face, showcasing their global adoption and versatility.

By promoting smaller parameter models, Alibaba Cloud is helping reduce the energy consumption and costs associated with AI training and deployment, fostering a collaborative ecosystem that supports energy-efficient innovation.

Surveying 1,300 decision-makers across 13 markets, the “Tech-Driven Sustainability Trends and Index 2024” report provides valuable insights into the role of digital technologies in driving corporate sustainability. It emphasizes the importance of businesses adopting AI and cloud computing responsibly to address energy consumption concerns and bridge gaps in sustainability efforts.

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