Global firms adopting AI to surpass legacy tech barriers

Companies worldwide are becoming increasingly open to replacing legacy technologies in favour of advancements in artificial intelligence (AI) and machine learning (ML), as indicated by a new study commissioned by Eaton.

Eaton, a global power management company, collaborated with S&P Global Market Intelligence to survey leaders in digital transformation across sectors such as data centres, utilities, buildings, and manufacturing in regions including North America, Europe, and the Middle East. This research was part of Eaton's second Brightlayer study, which highlights the rapid development of digitalisation strategies in these fields.

The study reveals a significant shift in sentiment regarding the barriers posed by legacy technology to digitalisation. In the recent findings, fewer than 24% of companies now perceive legacy systems as an obstacle, compared to 33% the previous year. This change, within less than two years, is largely attributed to the potential of AI and ML applications to transform business operations.

Mark Roces, Vice-President of Digital Offer Management at Eaton, commented, "This research shows how urgently businesses want to implement digital technologies that deliver the benefits of AI and ML. The data centre sector is clearly going to be instrumental in this shift because the utility, commercial building, and manufacturing sectors will depend on data centres to underpin their AI journeys. Digitalisation will also help these sectors deliver on the decarbonisation strategies required by regulations, many of which have been introduced in support of the UN's 2050 net zero target."

The research highlighted sector-specific trends, including data centres which are scaling up to meet the increasing demand. Key areas of focus reported include facility upgrades, which 42.3% of data centres are prioritising, expansion of capacity at 38.6%, and boosting IT asset performance utilisation at 32.8%.

Utilities are facing challenges with outdated infrastructure, as highlighted by 55% of respondents. They are anticipating a sharp increase in grid capacity requirements over the next decade, with 40% predicting the need for additional capacity by as much as 49%.

Manufacturers expressed optimism about AI's capability to aid in their decarbonisation efforts and improve their environmental, sustainability, and governance metrics, as mentioned by 66% of participants. Furthermore, manufacturers expect enhancements in electrical energy monitoring and optimisation, digital twin applications, and predictive maintenance, receiving 55%, 68%, and 64% respective acknowledgments from survey participants.

In the building sector, a focus on digital transformation is a key strategy to achieve sustainability targets, with over 46% indicating this effort. Moreover, 54% of large building owners plan to install building management systems within the coming year, incorporating AI as a tool for predicting space utilisation, which 66% foresee as beneficial.

Eaton's Brightlayer software is designed to support businesses in embracing digitalisation, offering intelligent insights to optimise power management. Brightlayer integrates Eaton's domain knowledge with AI, ML, and big data processing, enabling more efficient real-time decision-making.