Legacy Technology Unlikely To Impede the Quest for Artificial Intelligence and Machine Learning Gains, Finds New Global Study

Rhea-AI Summary

Eaton's new global study reveals companies are increasingly willing to abandon legacy technologies to adopt AI and machine learning. The research shows only 23% of companies now view legacy technology as a digitalization barrier, down from 33% in 2022. Key sector findings include: data centers focusing on facility upgrades (42.3%) and capacity expansion (38.6%); utilities expecting significant grid capacity increases; manufacturers seeing AI as key for decarbonization (66%); and building operators planning to install management systems for energy optimization. The study, conducted by S&P Global Market Intelligence, surveyed digital transformation leaders across data center, utilities, buildings, and manufacturing sectors in North America, Europe, and Middle East.

Positive

• 10% reduction in companies viewing legacy technology as a barrier to digitalization
• 42.3% of data centers focusing on facility upgrades
• 38.6% of data centers expanding capacity
• 66% of manufacturers see AI potential for decarbonization and ESG improvement
• 54% of large building owners planning to install management systems within next year
• Strong revenue performance with $23.2 billion reported in 2023

Negative

• 55% of utilities struggling with outdated infrastructure
• 40% of utilities predict significant grid capacity strain in next 10 years

DUBLIN, IRELAND / ACCESSWIRE / November 19, 2024 / Companies are increasingly willing to relinquish legacy technologies to reap the benefits associated with artificial intelligence (AI) and machine learning (ML), according to a new study commissioned by Eaton, a global leader in intelligent power management.

Eaton commissioned S&P Global Market Intelligence to survey digital transformation leaders from the data center, utilities, buildings and manufacturing sectors in North America, Europe and the Middle East. The findings of the study, detailed in the second Eaton Brightlayer® research report, show that digitalization strategies are being developed quickly in these sectors.

Fewer than one-in-four companies (23%) surveyed said that legacy technology poses a barrier to digitalization compared with one-in-three (33%) who were asked the same question in 2022. Newly emerging AI and ML applications, which show huge potential to transform businesses, are credited with this 10% shift in sentiment over a period of less than 24 months.

Mark Roces, vice-president of digital offer management at Eaton, said: "This research shows how urgently businesses want to implement digital technologies that deliver the benefits of AI and ML. 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. Digitalization will also help these sectors deliver on the decarbonization strategies required by regulations, many of which have been introduced in support of the UN's 2050 net zero target."

Top findings in each sector are as follows:

• Data centers are scaling up to meet growing demand and are focusing on facility upgrades (42.3%); expanding capacity (38.6%); and improving IT asset performance utilization (32.8%).

• Utilities are under pressure because while 55% point to outdated infrastructure as their biggest problem, they expect grid capacity requirements to rise significantly over the next 10 years, with 40% predicting extra capacity requirements of up to 49%.

• Manufacturers believe AI could facilitate decarbonization and boost their environmental, sustainability and governance (ESG) scores (66%), as well as improve electrical energy monitoring and optimization (55%) and enhance digital twin (68%) and predictive maintenance applications (64%).

• Building operators are focusing on digital transformation to help them achieve sustainability targets (upwards of 46%), with most large building owners (54%) planning to install building management systems within the next year to help them optimize energy use, and many seeing AI as a future tool to help them predict space utilization (66%).

Eaton's Brightlayer software makes it easier for businesses to embrace digitalization and drive operational value by leveraging intelligent, actionable insights from their data. Brightlayer combines Eaton's deep domain knowledge with AI, ML and big data processing to support efficient real-time decision-making to optimize power management.

A free download of the Eaton's 2024 Brightlayer research report is available here: Adoption, execution and expansion of digital transformation in the wake of AI, together with more information about the strategies that businesses can adopt to be better prepared for the digital future.

Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're accelerating the planet's transition to renewable energy sources, helping to solve the world's most urgent power management challenges, and building a more sustainable society for people today and generations to come.

Eaton was founded in 1911 and has been listed on the New York Stock Exchange for more than a century. We reported revenues of $23.2 billion in 2023 and serve customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.

Contact:

Name: Angela Swann
Phone number: +447773198113
Email address: AngelaSwann@eaton.com

Name: Regina Parundik
Phone number: +14125591614
Email address: Regina@cobblecreative.com

View additional multimedia and more ESG storytelling from Eaton on 3blmedia.com.

Contact Info:
Spokesperson: Eaton
Website: https://www.3blmedia.com/profiles/eaton
Email: info@3blmedia.com

SOURCE: Eaton

View the original press release on accesswire.com

FAQ

What percentage of companies see legacy technology as a barrier to digitalization in Eaton's 2024 study?

According to Eaton's 2024 study, 23% of companies view legacy technology as a barrier to digitalization, down from 33% in 2022.

What percentage of data centers are focusing on facility upgrades according to Eaton's research?

42.3% of data centers are focusing on facility upgrades according to Eaton's latest research.

How many utilities expect increased grid capacity requirements in the next decade?

40% of utilities predict extra capacity requirements of up to 49% over the next 10 years.

What percentage of manufacturers believe AI could help with decarbonization and ESG scores?

66% of manufacturers believe AI could facilitate decarbonization and boost their ESG scores.