AI-Powered Green Solutions Drive Southeast Asia's Sustainability Agenda

Amid mounting pressure from international organizations and governments to drive sustainable economic growth, global technology intelligence firm ABI Research finds that companies in Southeast Asia (SEA) are rising to the challenge by embracing Artificial Intelligence (AI) and Machine Learning (ML) solutions to meet their Environmental, Social, and Governance (ESG) goals and demonstrate their commitment to a sustainable future. Many SEA countries, such as Singapore, Malaysia, Thailand, Vietnam, the Philippines, and Indonesia, already require qualified companies to disclose ESG. Countries such as Singapore and Malaysia have further outlined clearly defined roadmaps to expand ESG reporting to more companies in the future.

“Across vertical industries, AI and ML solutions are being adopted to drive sustainable growth, from enhancing operational efficiency to accountability in tracking carbon emissions. These technologies power innovations such as AI-driven carbon management software and robotic systems. In SEA, the urgency to embrace these solutions is particularly high, as the region is becoming a key target for factory development and is viewed by companies as a major hub for future business expansion. Hence, adopting AI-enabled solutions is increasingly recognized as critical to ensuring sustainable growth in this rapidly growing region,” explains Rachel Kong, Research Analyst at ABI Research.

A recent survey by ABI Research revealed significant interest in AI-based solutions in Malaysia, with more than 50% of respondents from the manufacturing sector deeming AI as an essential component when evaluating new solutions. Robotic Process Automation (RPA) and Enterprise Resource Planning (ERP) software were ranked the top two most important investment areas to support productivity improvements and solution areas in which AI is expected to feature heavily. This trend is expected to be consistent throughout most of the SEA region as well.

Additionally, many innovative solutions are being introduced to support sustainable growth. For example, in the automation industry, Schneider Electric in SEA is developing new technologies for electrification, automation, and digitization by leveraging AI-driven analytics to optimize operations and increase efficiency. Leading innovators in the carbon management software space, such as Zuno Carbon, Evercomm, Unravel Carbon, and Jejakin, have also integrated AI-driven features in their solutions to streamline data collection and improve the overall efficiency of emissions accounting.

"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, says Matthias Foo, Senior Analyst at ABI Research. "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 its overall impact on business operations.”

These findings are from ABI Research’s Leveraging AI and ML for Sustainable Growth in Southeast Asia report. This report is part of the company’s Southeast Asia Digital Transformation research service, which includes research, data, and ABI Insights.