Eaton News: Legacy Tech Won't Hinder AI/ML Progress

A recent study by Eaton, a global leader in intelligent power management, reveals that fewer companies in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) now view legacy technology as an obstacle to digitalization, compared to 2022. This shift in perception is attributed to the growing adoption of artificial intelligence (AI) and machine learning (ML), which are increasingly seen as essential tools for driving digital transformation.

Survey Insights: Digital Transformation in the Middle East

Eaton partnered with S&P Global Market Intelligence to survey leaders of digital transformation across various sectors, including data centres, utilities, buildings, and manufacturing, in the Middle East and other global markets. The second Eaton Brightlayer® research report, which details the findings, highlights the rapid development of digitalization strategies in these industries.

Reduced Impact of Legacy Technology

The survey found that only 23% of companies now view legacy technology as a barrier to digitalization, a notable decrease from 33% in 2022. This 10% shift in sentiment is largely attributed to the rise of AI and ML technologies, which are recognized for their potential to transform business operations in less than two years.

Qasem Noureddin, Managing Director at Eaton Middle East, said: “Businesses in the UAE and KSA are accelerating their efforts towards digital transformation. This report emphasizes the pivotal role of digital technologies in driving business objectives and shows how urgently businesses want to implement technologies that incorporate AI and ML. It shows that demand for data centres has increased, driven by artificial intelligence and other advanced technologies. Other B2B sectors in the UAE and KSA like manufacturing, utilities, and building/facilities management continue to advance their digitalization efforts to achieve their digital transformation and sustainability goals, aligning with national objectives.”

Data Centres Focus on Scaling and Performance

In the data centre sector, companies are scaling up operations to meet the increasing demand. Key priorities include upgrading facilities (42.3%), expanding capacity (38.6%), and improving IT asset performance utilization (32.8%).

Utilities Struggling with Outdated Infrastructure

For utilities, 55% of respondents cited outdated infrastructure as their biggest challenge. Despite this, they anticipate significant increases in grid capacity requirements over the next decade, with 40% expecting a rise of up to 49%.

Manufacturers Harnessing AI for Sustainability

Manufacturers are increasingly turning to AI to support sustainability efforts. The study found that 66% believe AI can aid in decarbonization and improve their environmental, sustainability, and governance (ESG) scores. Additionally, 55% see AI as a tool for better electrical energy monitoring, while 64% believe it can enhance predictive maintenance applications.

Building Operators Prioritize Sustainability and AI Integration

Building operators are focusing on digital transformation to meet sustainability targets, with 46% aiming to achieve these goals. Many large building owners (54%) plan to install building management systems within the next year to optimize energy usage and 66% see AI as a key tool for predicting space utilization in the future.

Eaton's Brightlayer Software: Enabling Digital Transformation

Eaton’s Brightlayer software facilitates digitalization by providing businesses with intelligent, actionable insights derived from their data. By integrating AI, ML, and big data processing, Brightlayer supports real-time decision-making, helping companies optimize power management and drive operational efficiency.