Investments in AI across the Asia Pacific region are projected to reach $110 billion by 2028, according to the latest Worldwide AI and Generative AI Spending Guide by the International Data Corporation (IDC). The forecasted compound annual growth rate (CAGR) AI across the Asia Pacific region stands at 24 percent from 2023 to 2028.
The shift from experimental phases to large-scale AI implementations is fueling the demand for AI governance frameworks.
Deepika Giri, Head of Research, Big Data & AI at IDC APJ, said: “This approach not only considers technological frameworks like AI platforms and models but also addresses regulatory, organizational, and cultural dimensions to protect internal and external stakeholders’ interests.”
Key Sectors Driving AI Growth
The software and information services industry is projected to hold a 23.8 percent market share by 2024, leading AI adoption across industries. A significant portion of AI investment is directed toward infrastructure provisioning, allowing businesses to manage IT infrastructure while enabling end-users to access resources crucial for AI development and deployment.
The banking sector remains a frontrunner in adopting AI, using it for fraud detection, personalized services, and improving customer experience. Telecom companies are also harnessing AI to enhance network operations, customer service, and predictive maintenance, driving new revenue streams.
Vinayaka Venkatesh, Senior Market Analyst at IDC Asia/Pacific, noted: “The adoption of AI in the APJ region is reshaping business strategies, fostering a new era of digital success through AI-powered insights and solutions.”
Transformative AI Use Cases in the Region
AI is transforming various industries, from professional services to government operations. In customer service, AI enables more human-like, empathetic interactions, improving engagement and service delivery at scale. Fraud detection systems in financial institutions leverage AI to detect and prevent fraudulent activities in real time.
In government, AI enhances decision-making processes, optimizes public safety operations, and strengthens national security by improving threat intelligence and predictive analytics. The continued integration of AI across industries is expected to accelerate as businesses capitalize on AI’s transformative potential in the coming years.
