The adoption of artificial intelligence (AI) in the Asia-Pacific (Apac) region is gaining momentum, with investments expected to hit $110 billion by 2028. According to market intelligence firm International Data Corp. (IDC), this growth will be driven by a 24% compound annual growth rate (CAGR) from 2023 to 2028.
The banking industry, known for being an early adopter of AI, is leading the charge. AI is being used to improve everything from fraud detection to personalized customer experiences. Banks are also tapping into AI to make better, data-driven decisions that save both time and money.
Telecom companies are catching up fast, using AI to optimize network operations, offer virtual customer support, and handle massive amounts of data. These efforts are improving service quality while opening the door to new business opportunities.
The software and information services sector is also making significant strides and is projected to capture nearly a quarter of the market share in 2024. Investments are focusing heavily on AI infrastructure, which is crucial for businesses looking to scale their AI capabilities.
Full-scale deployment
As companies transition from experimenting with AI to full-scale deployment, there’s a growing emphasis on AI governance. IDC stressed the importance of not only managing the technology but also addressing regulatory, organizational, and cultural concerns to protect stakeholders.
Beyond finance and telecoms, government sectors are also getting a boost from AI. The technology is being used to enhance public safety, streamline emergency responses, and improve national security efforts.
The IDC’s latest report shows that AI is no longer just a buzzword in the region. It’s becoming a crucial part of business strategies across industries, driving efficiency, innovation, and new opportunities.