APAC organisations embrace generative AI

The adoption of generative artificial intelligence (GenAI) in Asia-Pacific (APAC) is surging ahead, defying naysayers who predicted a slowdown, a new study by TechTarget’s Enterprise Strategy Group has found.

According to the global study, which polled 288 IT and business professionals in APAC, 70% of organisations using or experimenting with GenAI reported increased usage in the last year, with 45% noting a significant increase.

This surge is driven by a growing recognition of GenAI’s potential to revolutionise various business functions, with organisations across the region harnessing its power to automate tasks, streamline workflows, and unlock new levels of productivity and efficiency in various applications.

On average, APAC organisations are applying GenAI in around three to four use cases. Leading the way are software development (40%), IT operations (39%), research (34%) and customer service (33%). Supply chain, manufacturing and finance are lower priorities.

APAC organisations have also shown a strong preference for technology suppliers with a broad set of services across the infrastructure, data, and AI ecosystem, as well as in-house development, indicating a desire for greater control and customisation.

This trend likely stems from the region’s vibrant tech ecosystem and the need for tailored solutions addressing specific regional needs and market dynamics. This is underscored by the fact that 39% of APAC organisations strongly agree or somewhat agree that training their own GenAI models in valuable.

However, the path to AI-driven transformation is not without hurdles. Employee skills gaps, a perennial concern in the tech industry, have emerged as a major challenge.

As GenAI becomes increasingly sophisticated, the demand for skilled professionals capable of harnessing its full potential is outpacing supply. Organisations are responding by investing in upskilling and reskilling initiatives, recognising that human capital is as crucial as technological prowess.

Data quality is another key concern, with GenAI models only as good as the data they are trained on. Ensuring data accuracy, completeness, and bias-free representation is essential for generating reliable and meaningful outputs.

In fact, APAC organisations are realising that data management and governance are not mere afterthoughts but critical components of their AI strategies, especially when training models aligned with their specific needs and values.

Data privacy and security risks are paramount concerns for 75% of APAC organisations venturing into GenAI. The vast amounts of data required to train and operate models can be a treasure trove for cyber criminals. Safeguarding sensitive information and ensuring compliance with data protection regulations are non-negotiable for organisations seeking to maintain trust and avoid costly breaches.

APAC organisations, with their diverse regulatory landscapes and growing emphasis on data sovereignty, are particularly sensitive to these risks. They also exhibit a distinct focus on ethical and transparent AI practices, with 82% prioritising responsible AI, reflecting a growing awareness of the technology’s societal impact.

While IT departments currently hold the reins for GenAI initiatives in APAC, the research suggests a potential shift towards business units as use cases mature and returns on investments becomes clearer.

Across the region, 64% of organisations are more likely to consider vendors that incorporate GenAI features and functionality into their products, underscoring the growing demand for integrated offerings that can accelerate GenAI adoption and deliver tangible business value.

When it comes to deploying GenAI workloads, the research reveals a clear preference for public cloud infrastructure. A significant 74% of APAC respondents indicated that they currently leverage public cloud service providers for GenAI use cases, highlighting the scalability, flexibility, and cost-effectiveness of cloud-based offerings.

While on-premises deployment still accounts for 43% of GenAI workloads in APAC, the trend towards hybrid cloud adoption is expected to accelerate as organisations seek to optimise their AI infrastructure and reduce operational costs.

Looking ahead, APAC businesses are optimistic about the potential of AI agents, with 70% planning or considering their integration. These intelligent virtual assistants, powered by GenAI, have the potential to transform the way people interact with technology, though organisations will need to grapple with managing agents, interoperability issues and security risks.