AI Spending in APAC To Reach USD32B by 2025
Research from IDC shows that APAC companies are expected to increase their spending on artificial intelligence (AI) systems in the next three years. This is in line with their goal of improving employee efficiency and speeding up decision-making.
IDC predicts that AI system spending in the region will grow from USD17.6 billion in 2022 to USD32 billion in 2025, at a compound annual growth rate of 25.2%. This would represent a significant increase in AI adoption in the region.
The banking industry is expected to lead the way in AI spending as they look to use AI systems to mitigate risks and detect and analyze fraud.
This is followed by state and local governments deploying AI in public safety and emergency response applications.
Professional services is another industry that is expected to see strong growth in AI spending as companies look to use AI-powered chatbots and virtual customer assistants to improve customer service. IDC points to smart business innovation and automation in helping companies optimize and streamline complex and repetitive business tasks.
"Increasing government regulations and mandates of AI's trust, robustness, and ethical use will need to be addressed by organizations. Customer-facing industries such as financial services, hospitality, and tourism will take the lead in addressing these government mandates," said Vinayaka Venkatesh, senior market analyst at IDC IT Spending Guides, Customer Insights & Analysis.
IDC identified the top five use cases for AI system spending in APAC — augmented customer service agents, public safety and emergency response, sales process recommendation and augmentation, smart business innovation and automation, and fraud analysis and investigation among others — all of which combined account for USD6.1 billion or 34.5% of the total AI spending in the region. These technologies allow businesses to deliver a better customer experience while saving time for decision-makers.
“Many of the changes caused by the pandemic will stay, and we expect the adoption momentum of practical AI use cases such as remote or contactless engagement to continue. In the long term, clear guidance on the management of the associated risk factors of AI solutions will further boost the confidence level of buying organizations,” says Jessie Danqing Cai, associate research director for cognitive computing/artificial intelligence for IDC Asia/Pacific.
Image credits: iStockphoto/AndreyPopov; graph: IDC
