In a recent report released by IDC, projections reveal a significant adoption of AI and machine learning technologies in industrial operations across Asia by the year 2026.
The report, titled “IDC FutureScape: Worldwide Future of Operations 2024 Predictions — Asia/Pacific (Excluding Japan) Implications,” showcases several forecasts highlighting the integration of innovative technologies for operational enhancements.
The IDC’s Future of Operations framework outlines the pivotal role of data-driven operations (DDO) in optimizing decision-making processes within organizations. Key components of DDO, such as digital technology and cloud capabilities, have been underscored as essential elements for operational efficiency.
Cloud technology, in particular, has emerged as a top priority for over 77 percent of respondents in the Asia/Pacific region, according to the IDC’s 2023 Worldwide Future of Operations Survey.
Rakesh Patni, IDC’s Associate Research Director for Future of Operations Asia Pacific, emphasized the strategic importance of investing in fundamental technologies that enable data-driven operations across industries in the region.
Looking ahead, the report emphasizes the critical role of Generative AI in extracting profound insights from operational data. Around 57 percent of Asia/Pacific respondents identified Generative AI tools, like ChatGPT, as one of the top analytic tools and techniques for significant future investments. This technology, employing unsupervised and semi-supervised algorithms, is poised to usher in a new computing era labeled as the “Era of AI Everywhere.”
Several key predictions stand out in IDC’s report, indicating the integral role of AI in the future of operations:
GenAI Data Discovery: By 2027, 30 percent of industrial operations will employ generative AI for on-demand operational performance reports, potentially saving up to 10 percent of labor costs from manual data aggregation.
AI-driven Industrial Automation: By 2026, 20 percent of industrial operations in Asia will utilize AI/ML for vision-based systems, robotic automation, and processes to achieve higher efficiencies and improve worker safety.
Cybersecurity Impact of AI: By 2026, around 50 percent of organizations in Asia will leverage AI-powered advanced threat detection to counter the risks posed by GenAI cybercrime tools used in phishing and ransomware attacks.
In the short term (2024-2025), the focus remains on countering cybersecurity threats posed by GenAI cybercrime tools and enhancing AI-driven industrial automation. Longer-term strategies (from 2027 onwards) will capitalize on Generative AI for producing operational performance reports and streamlining administrative tasks.
While AI has been the primary focus, IDC stresses the importance of a comprehensive approach integrating various technological and strategic dimensions to navigate the digital business transformation era effectively. The report offers additional guidance for business leaders, highlighting key predictions for 2023:
Talent Development Investment: Over 40 percent of top organizations will significantly increase talent development spending to execute digital operations roadmaps and achieve ROI targets by 2024.
Sustainability-Driven OpEx: By 2027, a quarter of industrial organizations in Asia will leverage real-time data for sustainability initiatives, enhancing operational performance and visibility.
Unified Partnership Transformation Strategy: Around 25 percent of leading companies will allocate a considerable portion of digital technology budgets to third-party partners to transform multiple operations functions.
Edge-native App Data: Organizations embracing edge native platforms will extract greater value from data and deploy projects at a significantly faster pace than those relying solely on traditional core, edge, and cloud resources.
Cloud Data Repatriation: Initiatives to pull operational data back from the public cloud by 2025 will help reduce Opex costs by up to 10 percent for numerous organizations.
Human Augmentation Through Technology: By 2027, 60 percent of Asia/Pacific based organizations will integrate automation technology to enhance operational roles, leading to increased employee engagement and a 50 percent boost in worker efficiency.
