Artificial intelligence (AI) is moving from an experimental tool into a direct source of revenue for companies in the Asia-Pacific region (APAC), according to a new report from technology company IBM.
The report, APAC AI Outlook 2026: Transferable Value across Industries, shows that many organizations now view AI as a way to grow income, not just reduce costs. This shows a change from earlier concerns about unclear returns on investment and rising technology debt.
Developed with the IBM Institute for Business Value (IBV), the study draws on interviews with executives from 14 leading organizations across banking, manufacturing, telecommunications, energy, and the public sector. These include banks, telecom operators, manufacturers, energy providers, and government-related agencies that are already using AI at scale.
The findings suggest that AI is increasingly being built into core business operations rather than being tested in isolated projects. Companies are using AI to redesign products and services, improve decision-making, and create new income streams.
“The 2026 trends show enterprises embedding AI directly into their core business models, unlocking new revenue streams and accelerating innovation at scale,” said Juhi McClelland, managing partner, IBM Consulting APAC. “Organizations are moving beyond early experimentation and building AI that is governed, explainable, and aligned to national and enterprise priorities.”
McClelland added that the region is developing an AI environment that balances innovation with trust, as companies invest in local models, data protection, and long-term sustainability.
“Our APAC AI Outlook 2026 shows how these shifts are paving the way for enterprises to grow strategically and sustainably,” she said.
The report notes that organizations are now directing 64% of AI spending toward core business functions where results are easier to measure. It also cites earlier research showing that by 2026, 95% of global executives expect generative AI (GenAI) projects to be at least partly self-funded. This shows a significant shift in which AI is treated as a growth tool rather than a support function.
Across industries, the report outlines how AI use is evolving. In banking, AI is being used to support embedded finance, improve risk management, and deliver more personalized digital services through apps. In manufacturing, companies are using AI to predict equipment issues, improve production planning, and manage supply chains, including tracking emissions and resource use.
Telecommunications firms are adopting AI to manage networks automatically and to develop new data-based services. Energy companies are applying AI to stabilize power grids, integrate renewable energy, and reduce emissions. In the public sector, AI is being used to improve access to services such as healthcare, education, agriculture, and financial assistance, while strengthening oversight and accountability.
Technology trends
The report also highlights bigger technology trends affecting all industries. Generative and agent-based AI systems are becoming part of basic enterprise infrastructure. At the same time, AI is moving closer to users, running on devices such as smartphones and sensors to support privacy and real-time decisions.
Another finding is the link between trusted AI and financial results. Companies that invest more in AI ethics, governance, and transparency tend to see better returns from their AI projects. The report also points to growing interest in sovereign AI, where countries and organizations develop local models to address language, culture, data control, and security needs.
IBM’s study includes case studies and insights from organizations such as EastWest Bank, telecommunications company Indosat Ooredoo Hutchison, power generation firm Meralco PowerGen, Mercedes-Benz Research and Development India, and Telkom.
“What’s most exciting in APAC is how AI innovation is no longer confined within industries,” McClelland said. “We are seeing breakthroughs in telecom inspire advancements in manufacturing, and manufacturing models reshape the energy sector.”