50% of Asia/Pacific Organizations Will Only Work with IT Vendors that Meet ESG-Related AI Criteria by 2027 IDC Predicts

IDC predicts that by 2027, 50% of IT buyers in Asia/Pacific will only work with vendors that meet social, environmental, and governance-related responsible AI criteria in accordance with sustainable procurement requirements. This shift in tech-buyer mindset will emerge from organizations moving from the initial "scramble" of GenAI experimentation, currently at a 62% success rate, to a full-scale integration of AI across enterprises.

Melvie Espejo, research Director, Sustainable Strategies and Technologies, IDC Asia/Pacific.

This "AI pivot" emphasizes the critical shift from prolonged AI experimentation to the strategic integration of AI across all business operations. This transition involves recognizing AI as a core component of the enterprise, establishing robust governance frameworks, and fostering collaboration between business and IT teams to drive sustainable growth.

As AI adoption matures, enterprises will move beyond pilot initiatives to strategically embed AI in their core operations, ensuring measurable impact and compliance with ESG-driven governance. The inclusion of responsible AI criteria will balance sustainability considerations with AI’s functionality, ensuring that Green AI becomes a critical enabler of corporate ESG programs and long-term business value creation.

Due to the growing complexity of carbon accounting and supply chain decarbonization, IDC also predicts that by 2028, 50% of Asia/Pacific organizations will only partner with IT vendors that have robust services or a software partner ecosystem. These two predictions reflect the growing importance of technology, solutions providers, and ecosystems in accomplishing the ESG agenda. It also shows how AI will expand the role of IT in enabling successful, sustainable business transformation.

“The AI pivot will see the rise of Green AI use cases. Organizations will move beyond leveraging GenAI to generate emissions reports for compliance to more operationally focused sustainable transformation strategies such as the transition to low carbon footprint IT, more advanced climate risk analytics which will climate-proof supply chains, and enhanced capability to design and produce sustainable products and services at a faster rate,” said Melvie Espejo, research director, Sustainable Strategies and Technologies, IDC Asia/Pacific.

IDC highlights critical predictions to help businesses in the Asia/Pacific region become AI-fueled sustainable businesses, some of which are highlighted below:

Decarbonizing AI Infrastructure: By 2027, 50% of enterprises in APEJ will implement sustainable AI frameworks, leveraging data-driven decisions to scale AI operations across datacenter locations while meeting decarbonization goals.

Energy-Efficient AI Infrastructure: By 2028, 75% of customers in APEJ will expect CO2 emissions data on everything from build, operate, and disposition of their IT assets to assist with their overall corporate sustainable goals.

Decision-Makers and Budget Holders: By 2029, in 50% of APEJ organizations the chief ethics/sustainability officer will have joined the central AI data governance group or the AI center of excellence.

“Organizations have expanded the criteria for selection in sustainability technology and services. The challenges in ESG data and analytics will define customer requirements from now through 2029,” added Espejo.

To learn more, visit: www.idc.com