KUALA LUMPUR (March 19): Seventy-six percent of businesses agree that new digital technologies and artificial intelligence (AI) will be closely intertwined in creating a greener and sustainable future, stated a new report commissioned by Alibaba Cloud.

However, hindrances in the implementation of AI are largely due to 61% of businesses’ concerns surrounding energy consumption and cybersecurity, stated Alibaba in its Tech-Driven Sustainability Trends and Index 2024. The report was compiled based on a survey of 1,300 participants across 13 markets from Asia, including Malaysia, Europe and the Middle East.

The survey found that 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 (75%).

Moreover, 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%).

Artificial intelligence and machine learning are viewed as crucial digital technologies in advancing corporate sustainability. The Middle East places the importance of this at 52%, while emerging and developed Asian markets see this at 40% and 36% respectively.

A majority of Malaysian businesses agree it is important to their companies that technology is developed sustainably, as 88% of surveyed companies have expressed this sentiment.

Overall, 82% of businesses agree that sustainable development in technology will be important for their companies, with markets like Singapore (93%), the Philippines (91%) and Indonesia (89%) leading the charge.

Malaysian companies have ranked AI and machine learning (46%), collaboration and communication (34%) and Internet of Things (33%) as pivotal technologies in achieving global sustainability targets.

When it comes to selecting technology providers and digital adoption strategies, 52% of Malaysian businesses will prioritise cost-effectiveness, 48% will go for good customer support and 40% will look at data privacy commitments.

On the other hand, the obstacles that hinder complete AI adoption are explained by 59% of businesses acknowledging that there is a gap in understanding how digital technologies can help reach sustainability goals. Asia is the leading market for this opinion at 63%.  

Currently, 68% of businesses already believe that many companies are lagging in cloud computing and AI adoption, with the top three barriers contributing to this hesitation being knowledge gaps (38%), cost constraints (30%) and the lack of technical capabilities (31%).