The Asia-Pacific region is ramping up its investments in Generative AI (GenAI), as revealed in a recent study conducted by the Infosys Knowledge Institute (IKI). The study, encapsulated in Infosys’s Generative AI Radar APAC report, indicates a significant 140 percent increase in GenAI spending in the coming year, with an estimated $3.4 billion investment across key markets, including Australia, New Zealand, China, Japan, India, and Singapore.
While APAC companies currently lag behind their North American counterparts in GenAI spending, the study underscores the region’s commitment to rapidly closing the gap. China leads the pack with a projected investment growth of over 160 percent, reaching a staggering $2.1 billion. Australia and New Zealand are also making substantial strides, with investments anticipated to surge by more than 150 percent, from $60 million to $151 million in 2024.
One noteworthy finding from the report is that Australian companies, despite trailing Europe and North America in current investment proportions, are more efficient in deriving business value from their GenAI investments. The report attributes this efficiency to a more focused allocation of resources.
However, the study also identifies several obstacles to GenAI adoption in the APAC region. These include caution surrounding responsible AI, concerns about its impact on reputation, and a notable discrepancy in employee readiness. ANZ (Australia and New Zealand) ranks lowest in employee readiness for generative AI at 56 percent, emphasizing the need for upskilling efforts to bridge the gap.
Andrew Groth, Executive Vice President, Asia Pacific, Infosys, commented on the findings, stating, “Generative AI is clearly a transformative technology. Although company leaders across APAC have been more cautious than companies in the rest of the world, they are set to outpace firms in other regions.”
As APAC companies continue to embrace GenAI, the report recommends a strategic focus on talent development and creating a more accessible AI ecosystem through platform integration to unlock the full potential of this transformative technology.
Opinion: The rapid increase in investments in Generative AI in the Asia-Pacific region signifies a major shift towards embracing transformative technologies. As APAC companies continue to outpace firms in other regions, the strategic focus on talent development and creating an accessible AI ecosystem will be crucial in unlocking the full potential of GenAI.