According to a report by IDC, spending in Generative AI (GenAI) across the Asia-Pacific region is expected to skyrocket to $26 billion by 2027, marking a compound annual growth rate (CAGR) of 95.4 percent for the period spanning from 2022 to 2027.
Deepika Giri, Head of Research for Big Data & AI at IDC APJ, predicts a surge in the adoption of Generative AI in Asia/Pacific, matching growth rates seen in North America. This surge in Generative AI is attributed to enterprises heavily investing in developing data and infrastructure platforms tailored for GenAI applications. IDC report said.
China is anticipated to maintain its dominant position in the GenAI market, while Japan and India are poised to become the fastest-growing markets in the near future, according to IDC’s latest Worldwide AI and Generative AI Spending Guide.
Vinayaka Venkatesh, Senior Market Analyst at IDC Asia/Pacific, emphasizes the enduring significance of GenAI, highlighting its potential to generate new content across various mediums, including images, videos, code, and marketing materials. This capability promises substantial efficiency gains and opens doors for innovative creative opportunities, providing a competitive edge to adopters.
Key Industries Embrace Generative AI
In the financial services sector, Generative AI adoption is experiencing rapid growth, projected to reach $4.3 billion by 2027 with a remarkable CAGR of 96.7 percent. GenAI is utilized internally to enhance operational efficiency, automate repetitive tasks, and optimize back-office processes such as fraud detection and document creation. Moreover, tailored financial services powered by GenAI offer personalized planning tools and reports dynamically adjusting to meet customers’ evolving needs, leading to enhanced profitability through cost reduction and revenue generation.
The software and information services industry emerges as the second-largest adopter of GenAI, leveraging its versatility across sectors such as marketing, data analytics, and software development. In marketing, GenAI streamlines content creation, optimizing strategies and enhancing audience engagement. In data-driven fields, GenAI enriches datasets and improves model performance, while in software development, it accelerates tasks, leading to heightened productivity.
Government and Retail Sectors Embrace GenAI
Governments across the Asia-Pacific region view GenAI as an opportunity to enhance efficiency, transparency, and citizen engagement. By spearheading efforts in advancing education and training in GenAI, governments aim to catalyze job creation and stimulate technology innovation hubs.
In the retail sector, characterized by diverse consumer preferences and advancing digital technologies, GenAI adoption is increasingly prevalent. Retailers leverage GenAI to enhance personalization, automate tasks, and create dynamic visual content, ultimately fostering heightened customer engagement and loyalty.
