Companies in the Asia-Pacific (APAC) region are leading the way in effectively utilizing generative AI (GenAI), showing greater maturity and readiness compared to their counterparts in North America, as per recent research from the Infosys Knowledge Institute (IKI), the research arm of Infosys.
The Generative AI Radar APAC report predicts a significant increase of 140% in GenAI spending by APAC firms in 2025. The estimated investment is forecasted to reach US$3.4 billion across key countries, including Australia, New Zealand, China, Japan, India, and Singapore.
Andrew Groth, Executive Vice President, Asia Pacific, Infosys, emphasized the transformative nature of Generative AI and highlighted that although APAC leaders have been more cautious than their global counterparts, they are poised to outpace firms in other regions. Furthermore, APAC companies are already extracting more value from their GenAI investments. Groth advised organizations in the region to prioritize talent development and enhance AI accessibility through a platform ecosystem to maximize the benefits of this technology and become AI-first organizations.
The report, based on interviews with business leaders, AI practitioners, and a survey of 1,000 executives from companies in the mentioned countries, provides key insights:
Enterprises in APAC are making significant investments in GenAI, with China leading the region, expecting a growth of over 160% to US$2.1 billion. Australia and New Zealand are closely following, with an anticipated investment growth of more than 150%, reaching US$151 million in 2024.
Australian firms are more likely to derive business value from GenAI investments compared to their European and North American counterparts.
The primary obstacles to GenAI adoption in APAC include caution regarding responsible AI, concerns about the impact on reputation, and employee readiness.
APAC companies are more inclined than those in other regions to see greater impact in areas such as product development and content generation, with China and Japan driving this perspective.
In conclusion, the Infosys study sheds light on the dynamic landscape of Generative AI investments in APAC businesses. With a rapid uptick in investment, companies in the region are taking decisive steps to harness the potential of this transformative technology. The insights from the study emphasize the need for continued focus on talent development and fostering AI accessibility, positioning APAC firms at the forefront of the evolving AI landscape. As businesses embark on this journey, the future holds promise for innovative solutions and groundbreaking advancements in the realm of Generative AI.
