Forrester predicts AI shifts for Asia-Pacific by 2025

Forrester's recent report explores the projected impacts of artificial intelligence (AI) on the technology sector in the Asia-Pacific (APAC) region by 2025, predicting significant shifts in business initiatives across the region.

A striking 60% of firms in APAC are anticipated to adopt regionally-trained language models for AI localisation. Contrasting the trends in the United States, where public cloud usage for AI prevails, Forrester suggests that 90% of substantial enterprises in Greater China will integrate private cloud environments within a hybrid AI infrastructure strategy. Geopolitical dynamics, notably the China-US tensions, are expected to expedite regionalised AI investment, with key players in China and ASEAN countries adjusting their strategic AI deployment priorities.

The quest for a unified legislative framework for AI in APAC remains challenging, according to Forrester's insights. Unlike the cohesive regulatory approach seen in Europe, APAC's legislative landscape for AI is fragmented, with nascent initiatives such as the ASEAN Guide on AI Governance and Ethics highlighting the region's diverging paths. Hence, companies are urged to evaluate and adhere to country-specific compliance measures to facilitate AI integration.

In terms of marketing strategic advancements, Forrester predicts that by 2025, 20% of B2B brands will employ synthetic audience data to enhance customer engagement. This data offers a tactical advantage by simulating datasets that reflect target audience behaviours, facilitating quicker and cost-effective audience modelling, particularly when direct data collection presents challenges.

On a global scale, the Forrester report projects various developments within the tech industry. Notably, a significant breach involving Internet of Things (IoT) devices may disrupt a broad class of devices. Forrester also forecasts a competitive edge for AWS over Google in the enterprise applications market and foresees potential failures among firms attempting overambitious AI-driven architectural reforms.

A pertinent development in AI ethics and compliance is anticipated within the European Union, where Forrester expects, under the newly enacted EU AI Act, a generative AI provider will face its first fine. This act, akin to the General Data Protection Regulation, extends its regulations beyond EU borders, affecting businesses supplying AI solutions to the region.

Sharyn Leaver, Chief Research Officer at Forrester, comments, "In 2024, technology and security leaders ran pilots across their enterprises to explore innovative applications of AI, but not all AI initiatives yielded the intended business outcomes. While this bold experimentation will continue in 2025, leaders will also focus heavily on putting the lessons learned into practice to ensure that their investments deliver true business value."

Forrester also anticipates a marked increase in the adoption of AI for IT operations (AIOps) as organisations combat rising technical debts. The analysis indicates that 75% of technology decision-makers will confront moderate to severe technical debt by 2026, largely due to the complexity introduced by rapid AI developments.

Amid potential shifts in the technology infrastructure sector, the report highlights VMware's reduced dominance in private cloud deployments as public cloud providers bolster their investments in this area. However, recent pricing adjustments by VMware are likely to deter business expansion among new entrants.

Forrester's comprehensive 2025 Technology & Security Predictions Guide underscores critical themes and provides strategic foresight for technology leaders across pivotal sectors including AI, cloud computing, and cybersecurity. The report aims to equip industry leaders with the insights necessary to navigate the evolving technological landscape and leverage opportunities emerging in the forthcoming years.