Asia/Pacific takes the lead in generative AI investments: IDC

‘The Asia/Pacific (APAC) region is leading in GenAI investments with government support. Nearly, two-thirds of APAC organisations are exploring or investing in AI technologies,’ according to a report published by International Data Corporation (IDC), a global IT advisory firm.

Titled 'Exploring the Opportunities and Challenges of GenAI: Implications for Asia/Pacific Governments,' the report delves into the economic potential of Generative AI in the region. It further highlights that APAC countries proactively engage with emerging technologies, encountering fewer regulatory barriers and benefiting from robust government support to nurture innovation, thereby outpacing other areas in prioritising GenAI investments.

While exploring GenAI's opportunities and challenges for APAC countries, the report analyses its adoption trends and underscores the crucial role of governments. It advocates for robust regulatory frameworks based on validated AI principles. The report's findings include:

Key takeaways:

• APAC organisations are at the forefront of GenAI investments due to their active adoption of new technologies and government support. Moreover, around two-thirds of APAC organisations are either exploring potential applications or are already investing in GenAI technologies in 2023.
• As Gen-AI technology and data management continue to evolve, APAC countries face challenges in crafting regulatory frameworks that balance guardrails with innovation, without introducing obstacles.
• Challenges identified in applying these technologies include data quality, ethical concerns, deepfakes, complexities related to copyright and intellectual property, shortage of skilled talent, and high costs.
• Governments in various APAC countries have initiated guidelines that will influence future policies and regulations. These guidelines mainly emphasize key principles such as transparency, data protection, safety, intellectual property protection, open data access, and ethical standards.

In conclusion, these essential guidelines are intended to facilitate the responsible adoption of GenAI, promoting its transformative potential within the APAC region's digital economy.

Ravikant Sharma, Senior Research Manager of Government Insights at IDC APAC, commented, “Asia/Pacific governments’ support has definitely spurred GenAI investments in the region. However, it is imperative for AP governments to prioritise and craft robust regulatory frameworks to address various obstacles, that could inhibit the economic possibilities they envision”

In May 2023, a report titled 'What Is the Attitude of Asia/Pacific Enterprises Toward Generative AI Adoption and Application' shared that approximately 32% of surveyed organisations in the APAC region have shown a strong dedication to investing in generative AI technologies. Additionally, a report published in March 2023 on 'Worldwide Artificial Intelligence Spending Guide' revealed that organisations in the APAC region (excluding Japan) will spend nearly $47 billion by 2026 on AI systems (hardware, software, and services).