Study: AI Race Leaves No Room for Legacy Tech Excuses

Much has been talked about legacy and its detrimental effect on ambitions. But a new study shows that this may not be true.

A recent global study by Eaton reveals a significant shift in attitude towards legacy tech, with only 23% of businesses now viewing it as an obstacle to digital transformation. This marks a 10% drop in just 24 months, signaling a growing urgency to embrace the transformative power of AI and ML.

“This research shows how urgently businesses want to implement digital technologies that deliver the benefits of AI and ML,” says Mark Roces, vice president of digital offer management at Eaton. “The data center sector is clearly going to be instrumental in this shift because the utility, commercial building and manufacturing sectors will depend on data centers to underpin their AI journeys.”

Data centers: The unsung AI heroes

The study, conducted by S&P Global Market Intelligence, surveyed digital transformation leaders across various sectors, including data centers, utilities, buildings, and manufacturing.

It found data centers at the forefront of this digital revolution, focusing on facility upgrades (42.3%), capacity expansion (38.6%), and optimizing IT asset performance (32.8%).

AI: Sustainability’s driving force

Utilities face the challenge of modernizing outdated infrastructure (55%) while anticipating a significant surge in grid capacity requirements (40% predict up to 49% increase) over the next decade.

Manufacturers see AI as a key enabler of decarbonization efforts, with 66% believing it can boost their environmental, sustainability, and governance (ESG) scores. AI is also poised to revolutionize manufacturing processes, with 55% aiming to improve electrical energy monitoring and optimization, 68% focusing on enhancing digital twin applications, and 64% looking to advance predictive maintenance.

Sustainability is also a top priority in the building sector, with 46% focusing on digital transformation to meet their targets. More than half of large building owners (54%) plan to install building management systems within the next year to optimize energy use, and 66% see AI as a future tool for predicting space utilization.

Bottom line

The findings underscore the urgent need to prioritize digital transformation and AI adoption for Asia Pacific companies. By shedding legacy technologies and embracing innovative solutions like Eaton’s Brightlayer, businesses can unlock the full potential of AI and ML, driving efficiency, sustainability, and growth in the rapidly evolving digital landscape.

However, in the same vein, the study shows that companies no longer hide behind legacy systems as a key hurdle for AI. They realize that AI is here to stay and can solve more complex problems, and it is up to them to break through their legacy challenges. 

Image credit: iStockphoto/viafilms