Singaporean firms embrace digital tech despite energy fears

A new survey from Alibaba Cloud reveals that 84% of Singaporean businesses are interested in the potential of digital technologies such as AI and cloud computing for sustainable development, but there are significant concerns about the energy consumption of these technologies.

The "Tech-driven Sustainability Trends and Index 2024" report highlighted that a majority of businesses in Singapore see the benefits of digital technologies in advancing sustainability goals, ranking second in interest behind the Philippines. However, 85% of these businesses are wary of the high energy consumption that could hinder the broader adoption of these technologies.

According to the survey, AI and machine learning are seen as the most crucial technologies for corporate sustainability by 41% of Singaporean businesses, followed by cloud computing at 37% and collaboration tools at 34%.

There is, however, a significant knowledge gap with 83% of businesses acknowledging they do not fully understand how digital technology can assist in reaching their sustainability targets, which is above the Asia average of 63%. Further, 80% of executives admitted that their organisations are lagging in adopting these technologies for sustainability purposes.

The report also points out that 93% of Singaporean businesses agree on the importance of sustainable development in technology. They recognise various benefits, including cost savings, enhanced operational efficiencies, and improved adherence to ESG regulations.

Energy consumption remains a critical concern with 86% fearing it might offset the advantages offered by AI and cloud technologies. In response, around 57% of businesses in Singapore are choosing "green" cloud providers who use renewable energy, while 51% look for providers with commitments to sustainable products.

Selina Yuan, President of International Business, Alibaba Cloud Intelligence, stated, "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." She emphasised Alibaba Cloud's commitment to sustainable solutions, including a pledge to use 100% clean energy by 2030 and optimising AI capabilities for energy efficiency.

The company reported improvements in its green initiatives, such as reducing its data centre's power usage effectiveness and helping clients decrease emissions substantially. It is also promoting the adoption of smaller parameter models to reduce AI training costs and energy use.

The survey of over 1,300 decision-makers aims to provide insights into the evolving corporate sustainability landscape, urging businesses to responsibly adopt AI and cloud technologies to address energy concerns while bridging existing gaps in sustainability efforts.