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Sunday, March 3, 2024

Business In APAC Projected to Increase Generative AI Expenditure to $3.4 Billion

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Businesses across the Asia-Pacific (APAC) region are rapidly increasing their investments in generative artificial intelligence (GenAI), entering a phase of heightened maturity, according to a recent report by Infosys Knowledge Institute (IKI), the research arm of Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting.

The report indicates that while APAC companies currently trail behind their North American counterparts in GenAI spending, a significant surge is anticipated in the next year, with an estimated 140% increase.

This surge is expected to drive investments to approximately US$3.4 billion across key markets including Australia, New Zealand, China, Japan, India, and Singapore.

Key findings from Infosys’s Generative AI Radar APAC report, which includes insights from interviews with business leaders and AI practitioners as well as a survey of 1,000 respondents from the region, highlight several significant trends:

  • Among APAC countries, Australia and New Zealand (ANZ) exhibit some of the highest growth rates in GenAI spending both regionally and globally.
  • China leads the APAC region in GenAI investment, with a projected growth of over 160% to reach US$2.1 billion, closely followed by Australia and New Zealand.
  • Australian companies demonstrate a higher likelihood of deriving business value from GenAI investments compared to their European and North American counterparts.
  • Key obstacles to GenAI adoption in APAC include concerns surrounding responsible AI, potential impacts on reputation, and the readiness of employees.

Andrew Groth, Executive Vice President, Asia Pacific, Infosys, commented on the findings, stating, “Generative AI is clearly a transformative technology.

“Although company leaders across APAC have been more cautious than companies in the rest of the world, they are set to outpace firms in other regions. Additionally, they are already delivering more value from their spending on generative AI.”

In light of the projected exponential growth in GenAI spending, businesses in the APAC region are poised to leverage this technology to drive innovation, enhance efficiency, and boost competitiveness across various sectors.

The report underscores the importance for APAC companies to focus on talent development and making AI more accessible through a platform ecosystem to fully capitalize on the potential of generative AI and become AI-first organizations.

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