Artificial intelligence (AI) spending in the Asia Pacific excluding Japan (APEJ) region is expected to grow 1.7 times faster than overall digital technology investments in the next three years, according to a report by International Data Corp. (IDC). The research firm estimates that AI will generate an economic impact of more than $1.6 trillion in APEJ by 2027.
The IDC report highlights AI’s shift from an emerging technology to a key part of business strategy. The rise of generative AI (GenAI) has reinforced this transition, but organizations face challenges such as a shortage of skilled professionals and the need for responsible AI policies.
“The integration of AI into the core of digital business strategies has created immense opportunities for APEJ enterprises,” said Lawrence Cheok, associate research director for digital business and AI transformation strategies at IDC Asia/Pacific. “Leaders must prioritize addressing talent shortages, implementing responsible AI policies, and aligning AI investments with strategic goals to unlock the full potential of AI-driven transformation.”
IDC identified key trends shaping the digital economy. The role of chief information officers (CIOs) is evolving, with 40% expected to take on business leadership roles by 2026. The firm also predicts that by 2026, 40% of APEJ organizations will improve their ability to measure the return on investment (ROI) of digital technology, using data-driven methods.
However, IDC warns that by 2025, 80% of enterprises may struggle to maximize the value of their data, delaying AI adoption. Also, by 2027, 60% of APEJ organizations may experience digital skills shortages, causing project delays.
Organizations that successfully integrate AI into their operations are expected to strengthen their position in the digital economy, focusing on AI-driven business models and ethical governance.