AI spending to grow 1.7 times faster than overall digital tech investments in Asia-Pacific

Artificial intelligence (AI) will be a major driver of economic growth in the Asia-Pacific region as AI-related spending is projected to grow 1.7 times faster than overall digital technology investments over the next three years, according to a new report.

This surge is expected to generate a projected $1.6 trillion economic impact by the end of 2027 across Asia-Pacific Japan, according to an IDC report.

It mentioned that Asia-Pacific business leaders will demand 80 per cent success rate on GenAI initiatives by 2027. This ambitious target aims to boost efficiency and revenue growth.

“2025 will be the year of the AI Pivot. It marks the shift from seemingly endless AI experimentation to executing AI at scale,” said Sandra Ng, group vice president and general manager for IDC stated.

Organisations must integrate AI into their business strategies to stay ahead of the competition, moving beyond isolated pilot projects to achieve real, measurable business outcomes through structured approaches, governance, quality data and scalable fit-for-purpose infrastructure, Ng added.

By 2026, IDC predicts that over one-third of organisations will be stuck in the experimental, point-solution phase of AI experimentation. To get out of this muck, they must shift focus to enterprise use cases to deliver return on investment (ROI).

Organisations with high GenAI success integrate responsible AI into governance frameworks. By 2025, IDC forecasts that 70 per cent of them will formalise policies and oversight to address AI risks, aligning AI governance with strategic business goals.

GenAI-infused apps transform business decisions, raising the stakes for production launches.

By late 2026, 50 per cent of organisations in APJ will leverage AI to bring immediate employee and business value with AI-driven technology assistants, advisors, and agents enabling improved decisions.

“By 2028, IDC forecasts that 75 per cent of enterprises that establish an AI platform strategy built on a foundation of connecting processes to broader business functions will achieve enhanced value from their investments.