As global pressure mounts for sustainable economic development, Southeast Asian (SEA) countries are increasingly turning to Artificial Intelligence (AI) and Machine Learning (ML) to achieve their Environmental, Social, and Governance (ESG) goals. According to ABI Research, nations like Singapore, Malaysia, Thailand, Vietnam, the Philippines, and Indonesia are already mandating ESG disclosures, with Singapore and Malaysia leading the way in establishing clear roadmaps for expanded reporting.
"Across vertical industries, AI and ML solutions are being adopted to drive sustainable growth, from enhancing operational efficiency to accountability in tracking carbon emissions," says Rachel Kong, research analyst at ABI Research. The report highlights significant interest in AI solutions, particularly in Malaysia, where over 50% of manufacturing respondents view AI as essential for new initiatives. Key investment areas include robotic process automation (RPA) and enterprise resource planning (ERP) software, both anticipated to feature AI enhancements heavily.
Innovative applications of AI in SEA are rapidly emerging. For instance, Schneider Electric is developing AI-driven analytics to optimize operations in the automation sector. Furthermore, companies like Zuno Carbon, Evercomm, Unravel Carbon, and Jejakin are integrating AI into their carbon management solutions to streamline data collection and improve emissions accounting.
Matthias Foo, senior analyst at ABI Research, notes, "With the tightening of local sustainability reporting regulations in the region, we anticipate more companies to invest in AI and ML technologies to accelerate their sustainable efforts across industries, such as manufacturing, agriculture, supply chain, and finance. However, it is important to recognize that all enterprises are in different stages of their sustainability journey. Hence, each organization must carefully evaluate AI-based sustainability solutions to determine their overall impact on business operations."
The findings underscore a transformative shift in SEA, where AI and ML are not just technological innovations but vital tools for driving sustainable growth in an increasingly competitive global landscape.
