A study commissioned by technology company IBM found that while many organizations in the Asia Pacific (APAC) region are investing in artificial intelligence (AI) and Industry 4.0 capabilities, few are truly ready to adopt these technologies in a meaningful way.
The report, titled “APAC AI-Driven Industry 4.0: Building Tomorrow’s Industries,” assessed large companies in the manufacturing, energy, and utilities sectors. It showed that while 85% of respondents described themselves as either “data-driven” or “AI-first,” only 11% actually met those criteria based on IBM’s maturity assessment, 9% were considered data-driven and just 2% AI-first.
“APAC is uniquely positioned to lead in AI-driven Industry 4.0 transformation,” said Ong Tun Kim, general manager of IBM Manufacturing Solutions. “With strong national strategies, active public-private collaboration, and a willingness to experiment, the region continues to advance through rapid innovation and real-world deployment.”
The study warned that this gap between perception and reality could lead to poor investment decisions, delays in digital transformation, and overlooked operational issues.
Only 10% of organizations have a fully embedded Industry 4.0 strategy. The majority, or 70%, have plans that are either not executed, siloed, or limited to pilot programs. While 19% of respondents were concerned about employee resistance, only 26% have formal upskilling or change-management initiatives. Just 16% said they were confident in their internal AI capabilities.
About 67% use AI for limited, department-level tasks, and 73% lack systems to share knowledge across teams. Only 40% have widely adopted predictive maintenance, and just 37% have real-time visibility into their supply chains. While 63% use AI for specific processes, only 10% see AI and machine learning as strategic priorities.
The report also highlighted difficulties in transitioning from Industry 4.0 to Industry 5.0, which focuses on human-centered, resilient, and sustainable operations. Only 23% of respondents have systems that use customer feedback to shape product design or operations. Around 28% have invested in real-time sustainability tracking, but just a quarter of those can measure and report progress effectively.
Cybersecurity practices are also basic for many. Half of the surveyed organizations rely mostly on firewalls and endpoint protection, with limited use of more advanced tools like vendor-risk assessments, security information and event management (SIEM), or AI-powered governance.
“The winners will be those who establish secure, adaptable digital foundations, and those who empower their people to turn bold ideas into action,” Ong said.
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