Asean companies keen on AI for business benefits, despite its energy costs
Firms should assess not just the token prices before building an AI application, but also its carbon footprint, says an expert.
In a recent survey conducted by The Business Times and Kantar, 78% of South-east Asian business leaders believe that the benefits of artificial intelligence (AI) outweigh its energy requirements. This optimism is prevalent in Singapore, Vietnam, and Thailand, with Singapore leading in AI investment. The rapid growth in AI adoption across the region is driven by the quick returns on investment in AI applications for specific use cases, such as multilingual customer service.
However, 41% of businesses anticipate a moderate increase in energy demand as AI adoption expands, while 40% expect a significant rise. Energy costs are currently minimal compared to the overall cost of AI applications, but as AI becomes more domestic, businesses may face higher energy bills. Some markets, like the Philippines, are less optimistic about AI benefits due to existing electricity concerns and frequent natural disasters.
To mitigate these concerns, businesses should assess the carbon footprint of AI applications and use smaller, task-specific models that reduce energy consumption and environmental impact. Governments can also contribute by implementing clean power standards and engaging communities in the decision-making process regarding AI facilities.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
