Asia-Pacific businesses set to invest USD $3.4bn in GenAI
AI is pivotal to business success in 2024, and Asia-Pacific (APAC) businesses are making significant strides in embracing generative AI (GenAI). According to the latest research from the Infosys Knowledge Institute (IKI), investments are expected to soar to USD $3.4 billion in 2024. This remarkable surge underscores a broader trend of digital transformation sweeping across the region, albeit trailing behind North America in terms of total spending.
The Infosys Generative AI Radar APAC report sheds light on the burgeoning adoption and effectiveness of GenAI across Australia, New Zealand, China, Japan, India, and Singapore. Despite currently lagging in GenAI expenditure compared to North America, APAC's investment is forecasted to witness an unprecedented growth of 140% over the next year. This expansion is particularly noteworthy in China, where GenAI investment is expected to swell by more than 160% to USD $2.1 billion, closely followed by significant growth in Australia and New Zealand (ANZ).
Andrew Groth, Executive Vice President, Asia Pacific at Infosys, emphasised GenAI's transformative potential, 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."
The report highlights that Australian companies, despite their smaller investment relative to GDP compared to European and North American counterparts, utilise their funds more efficiently, thus extracting greater business value from GenAI. This underscores the nuanced landscape of GenAI adoption, where financial commitment is only part of the equation for achieving success.
One of the key insights from the report is the perceived challenges and obstacles to GenAI adoption in the APAC region. Concerns around responsible AI, including data privacy, ethics, and bias, along with apprehensions about potential impacts on reputation and employee readiness, emerge as significant hurdles. The report reveals a cautious stance towards GenAI's business implications, with almost 10% of respondents in APAC anticipating a negative impact on reputation, compared to a lesser degree of concern in North America and Europe. Notably, ANZ exhibits the lowest level of employee readiness for GenAI, with a focus on upskilling the existing workforce to bridge this gap.
Despite these challenges, APAC companies express a stronger belief in GenAI's potential to revolutionise product development, design, and content generation compared to their Western counterparts. China, in particular, is driving this optimistic outlook for product development, while Japanese companies are leading the charge in envisioning GenAI's impact on content creation and creativity.
Infosys, a global leader in next-generation digital services and consulting, through its research arm, is at the forefront of exploring and understanding the evolving landscape of digital transformation powered by AI. The company's commitment to amplifying human potential and fostering a culture of continuous improvement and learning positions it as a catalyst for change in navigating the complexities of digital innovation.
As businesses across APAC continue to navigate the opportunities and challenges presented by GenAI, the region stands on the cusp of a digital renaissance. The focus on talent development and making AI more accessible through platform ecosystems, as highlighted by Infosys, will be crucial in harnessing the full potential of this transformative technology for a future where APAC firms not only compete but lead on the global stage.
