Half of APAC companies seen tying up only with ESG-aligned AI vendors by 2027

According to IDC, this shift stems from organisations evolving from GenAI trials to full-scale AI integration.

By 2027, half (50%) of IT buyers in Asia-Pacific excluding Japan (APEJ) are expected to only engage with vendors that adhere to responsible AI standards aligned with environmental, social, and governance (ESG) criteria per sustainable procurement requirements, according to IDC’s report.

This shift in the tech-buyer mindset will emerge from organisations moving from the initial "scramble" of GenAI experimentation—currently at a 62% success rate—to a full-scale integration of AI across enterprises.

Additionally, IDC also predicts that by 2028, 50% of APAC organisations will exclusively partner with IT vendors that offer robust services or an extensive software partner ecosystem due to the growing complexity of carbon accounting and supply chain decarbonisation.

Herewith, IDC has outlined key predictions to help businesses in the APAC region become AI-fuelled sustainable businesses.

First, by 2027, 50% of enterprises in APEJ will implement sustainable AI frameworks, using data-driven decisions to scale AI operations across data centres whilst meeting decarbonisation goals.

Second, by 2028, 75% of customers in APEJ will expect carbon emissions data across the entire lifecycle of IT assets—from building, operation, and disposition—to assist with their overall corporate sustainable goals.

Lastly, by 2029, in half of APEJ organisations, the chief ethics or sustainability officer will have joined the central AI data governance group or the AI centre of excellence.

“The challenges in ESG data and analytics will define customer requirements from now through 2029,” said Melvie Espejo, research director of Sustainable Strategies and Technologies for IDC Asia-Pacific.