# Asia-Pacific Energy Sector: Only 15% Fully Utilize AI and Automation for Transition

- Link: https://www.thailand-business-news.com/asean/252524-asia-pacific-energy-sector-only-15-fully-utilize-ai-and-automation-for-transition
- Published: 2025-10-24T09:07:00+07:00
- Author: J. Allan

Fewer than 15% of firms in the Asia-Pacific energy sector are fully leveraging artificial
intelligence (AI) and automation technologies, even as awareness of their transformative
potential continues to grow, according to a new industry study.

## Key takeaways

 * Despite 71% of Asia-Pacific energy leaders recognizing AI and automation as vital,
   fewer than 15% have fully implemented these technologies.
 * Sustainability investments in the region are projected to grow 50% in five years,
   though affordability still outweighs green priorities in parts of Southeast Asia.
 * Stronger regional collaboration and cross-border grid integration could accelerate
   Asia’s energy transition and reduce investment risks.

While awareness of digital transformation in the energy sector is rising, adoption
across Asia-Pacific remains limited, according to new findings from ABB’s Energy
Industries division.

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Fewer than 15% of companies in the region are making full use of digital technologies
such as artificial intelligence (AI), digital twins, and scenario modelling to advance
their energy transition efforts, said Anders Maltesen, President of ABB’s Energy
Industries division.

ABB’s _Asia-Pacific Energy Transition Readiness Index 2025_, based on responses 
from 4,085 energy leaders surveyed between May and June, revealed that 71% view 
AI and automation as key enablers of transition goals. However, only 11% to 14% 
reported deploying fully optimized digital systems.

The study found mixed perceptions of progress. While 65% of respondents believe 
the transition is proceeding at an adequate pace and 56% have formal transition 
plans, just 13% consider themselves highly ready in terms of technology and infrastructure.

Despite slow regional uptake, some companies are emerging as early adopters. In 
the Philippines, Aboitiz Equity Ventures has ramped up digital initiatives to improve
efficiency and cut emissions. In Thailand, IRPC Public Co. Ltd. has deployed advanced
process control systems to optimize energy use at its cogeneration plants, reducing
high-pressure steam variability by up to 50% and lowering consumption.

## Investment and Risk Balance

According to ABB’s data, 57% of organizations in the region are increasing their
sustainability investments by more than 20%, outpacing the global average. Yet private
capital continues to weigh the region’s risk–return balance carefully. Corporate
sustainability investments are expected to grow by 50% over the next five years 
as more firms align with global climate targets.

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Adoption rates vary significantly across markets. In several Southeast Asian nations,
including Malaysia, Indonesia, the Philippines, Vietnam, and Thailand, affordability
still takes precedence over sustainability. In contrast, Japan, Korea, Singapore,
and Australia are leading in digital deployment, comparable to advanced European
economies, particularly in Northern Europe.

Regional collaboration remains essential to accelerating progress. Cross-border 
grid connectivity, for instance, could help Asian countries balance supply fluctuations,
reduce investment costs, and advance the energy transition more rapidly.