IBM Study: AI and Cloud Drive Sustainable IT Transformation

It’s well known that businesses all over the world are struggling with the twin imperatives of digital transformation and environmental sustainability.

Companies are under increasing pressure to reduce their carbon footprint while simultaneously under pressure to enhance their technological capabilities.

This pressure primarily stems from sources including worldwide ones like consumer demand, as people want more sustainable products and supply chains as they become more environmentally conscious, to more dependent pressures, like regulatory bodies and investors.

As a result, IBM, the multinational technology company, has conducted a study into how organisations are addressing these challenges by utilising technology.

The IBM Institute for Business Value surveyed 1,100 global executives to understand the adoption of sustainable computing practices and infrastructure.

Perhaps unsurprisingly, the study found a growing trend towards using AI and hybrid cloud solutions to optimise IT operations and reduce environmental impact.

What is the future of AI adoption in accelerating sustainable IT practices?

The IBM study found a marked increase in the adoption of generative AI (Gen AI) for sustainable IT initiatives.

Gen AI, being a type of AI capable of creating new content, is being increasingly applied to optimise energy consumption in IT operations.

The report predicts that this increase will reach 230% in organisations applying Gen AI to green IT initiatives by 2027.

The study also found that 27% of organisations were using post-pilot Gen AI in sustainable IT initiatives and operations in 2023.

Post-pilot Gen AI refers to the phase after initial testing, where Gen AI models are deployed for practical applications, optimising performance and integrating feedback to enhance functionality.

This figure is expected to rise significantly, with 63% of respondents planning to implement such technologies by the end of 2024, and 89% before 2028.

Kareem Yusuf, Ph.D, Senior Vice President of Product Management & Growth at IBM Software, says: "It is crystal clear that sustainability challenges are also business challenges.

“Companies that want to thrive in today's competitive landscape need a deep understanding of their waste, energy costs, environmental risks and supply chains."

The impact of AI on IT sustainability is already noticeable, with 57% of organisations reporting that the technology had a significantly positive effect on the sustainability of their IT operations.

Additionally, 49% of organisations have fully implemented AI for sustainable design.

However, the study also points out areas for improvement.

Only 23% of surveyed organisations are integrating sustainability assessments during the design and planning stages of IT projects to a "very great extent".

Moreover, of the 64% of organisations using Gen AI and large language models, only a third report having made "great progress" in addressing its environmental impact.

Hybrid cloud: a key player in sustainable IT

IBM also emphasises the role of hybrid cloud technology in advancing sustainable IT practices.

Hybrid cloud, which combines public cloud services with on-premises data centres or private clouds, offers flexibility and potential cost reductions that can contribute to more sustainable operations.

The study reveals that a quarter of organisations are currently using hybrid cloud to boost sustainability and energy efficiency.

Among these adopters, nearly half report a substantial positive impact on overall IT sustainability.

"IBM serves as client zero for many of the technologies it brings to market, leveraging our own solutions and innovations to make a lasting, positive impact through sustainability and in our business,” Christina Shim, Chief Sustainability Officer at IBM, explains.

“From minimising climate-related risks to creating and implementing industry solutions that harness the power of AI and hybrid cloud, we will create more pathways to better conserve natural resources and reduce environmental impact."

The report also notes that more than 80% of organisations following a holistic approach to IT sustainability are using automation to adjust IT environments based on demand, further enhancing efficiency.

The growing adoption of AI and hybrid cloud solutions reflects a broader shift in the global business community towards more strategic and environmentally conscious IT management.

However, as organisations embrace these technologies, they must also grapple with their limitations and challenges.

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