AI Spending in Asia Pacific Set to Surge, Driving $1.6 Trillion
SINGAPORE, 12th February 2025 – The growing APEJ economy, or the Asia Pacific excluding Japan, is laid open to AI, as revealed in the latest IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions. The study further postulates that investments in AI will generate higher returns than any other digital technology investment, with a resultant $1.6 trillion into the economy by 2027.
AI has come a long way from being an emerging trend to becoming a major business strategy with GenAI propelling its adoption into the mainstream. Nevertheless, hurdles remain, such as shortages of digital skills, responsible AI governance, and ensuring that investments in AI technologies yield value for the business. According to Lawrence Cheok, Associate Research Director at IDC Asia/Pacific, the bumpy ride needs to be addressed by business leaders to realize the entire potential of AI.
“The integration of AI into the core of digital business strategies has created immense opportunities for APEJ enterprises,” said Lawrence Cheok, associate research director for digital business and AI transformation strategies, IDC Asia/Pacific. “Leaders must prioritize addressing talent shortages, implementing responsible AI policies, and aligning AI investments with strategic goals to unlock the full potential of AI-driven transformation.”
The roles of CIOs are diversifying, with 40% expected to move into business leadership roles by the year 2026. Measuring digital ROI is increasingly becoming a priority, and organizations are turning to data-driven methods to monitor financial, operational, and customer metrics.
However, 80% of enterprises are likely to continue not treating data as a product-model-as delaying AI-driven business models. Moreover, by 2027, 60% of organizations in APEJ are expected to suffer from talent shortages, curbing the rate of adoption of AI technologies.
IDC notes that businesses which have leveraged AI will gain competitive leverage as such businesses will align their IT architectures with AI workflows while adopting data-as-product strategies and establishing responsible AI governance.
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