AI uptake accelerates in APAC as ANZ firms face skills shortage
AI adoption trends across APAC
The IDC analysis, based on surveys across Asia Pacific (APAC), found a rapid acceleration of AI, generative AI (GenAI), and machine learning (ML) adoption in the region. APAC's AI-centric server market is forecast to reach AUD$366 billion by 2025, with 21% of organisations in Australia and New Zealand (ANZ) noting measurable improvements from AI and ML deployments. Furthermore, 5% of ANZ businesses identified AI as central to their competitiveness.
Spending on GenAI is also gaining momentum. This year, 84% of APAC organisations are expected to allocate between AUD$1.5 to $3 million for GenAI initiatives. Across APAC, 38% of AI budgets are devoted to GenAI, higher than the global average of 33%. Despite the optimism, businesses face difficulties aligning AI initiatives with strategic goals and integrating AI with existing workflows.
Deployment strategies and challenges
Deployment strategies are evolving, with public cloud (including multicloud) leading in 2024. However, there is rising demand for private and on-premises AI deployments, driven by security, cost efficiency, data sharing, collaboration, and industry-specific needs. Organisations are increasingly adopting specialised AI models and focusing on data security and infrastructure choices across cloud environments.
Key challenges for scaling AI and GenAI include rising IT costs, regulatory and compliance risks, and meeting energy efficiency commitments. Skills shortages are cited by over 72% of APAC enterprises as a significant concern, leading to delays in digital transformation and product development. Security and privacy remain critical considerations, with organisations turning to external service providers for support in AI system security, infrastructure modernisation, and workforce training.
Approaches to AI adoption
The report notes that APAC organisations are generally following a structured, phased approach to AI adoption, targeting high-impact use cases to deliver measurable benefits while mitigating risks. Priorities include investing in suitable infrastructure, fostering AI-centric teams, aligning AI strategies with business goals, and implementing robust data governance frameworks.
Australian and New Zealand businesses are placing increasing reliance on external experts to tackle skills shortages and build scalable infrastructure. Across APAC, 60% of businesses rely on external developers for AI applications, with 30% developing AI in-house and 10% using commercial off-the-shelf solutions. Partnerships with technology providers have become essential for roadmap development, infrastructure support, implementation, and workforce development.
AI uptake across key industries
Banks and financial services are leading AI adoption in APAC, with 84% using AI and 67% deploying GenAI, often to enhance fraud detection, anti-money laundering, and operational efficiency. Financial services spending on AI and GenAI is projected to grow at a compound annual rate of 25-31% from 2023 to 2028. A majority of banks prefer composing AI solutions using enterprise platforms, which requires ongoing expert support in security and data management.
In manufacturing, 78% of companies are using AI, with 54% adopting GenAI for supply chain optimisation, predictive maintenance, and real-time production monitoring. Half of manufacturers prefer tailored AI solutions, focusing on areas such as manufacturing execution systems, supply chain integration, and workforce upskilling.
The energy sector is leveraging AI (83%) and GenAI (73%) for grid optimisation, predictive maintenance, and energy distribution. Australian engineering firm Worley has begun deploying generative solutions to enhance efficiency and collaboration. Investments are being made in responsible AI practices and infrastructure to promote the transition to cleaner energy and improve grid management across the region.
Healthcare organisations report 86% adoption of AI and 59% adoption of GenAI, with a focus on diagnostics and predictive analytics. Notably, CSIRO's Virga computer cluster is being used in partnership with Queensland Children's Hospital to train AI models for diagnosing cystic fibrosis in paediatric patients. Over half of regional healthcare organisations prefer composed AI solutions, often turning to vendors to address complexities around regulations and skills shortages.
Retailers in APAC are using AI (82%) and GenAI (63%) for personalisation, inventory planning, dynamic pricing, and fraud prevention. Around 43% prefer composed AI solutions. Retailers report challenges with data readiness and talent availability, prompting a combination of internal capability building and reliance on outside vendors.
Expert perspective "The Asia Pacific region holds immense potential to lead the way in AI adoption and innovation. Now is the time for enterprises to move beyond proof of concept (POC) and focus on achieving measurable return on investment (ROI)," said Chris Kelly, Senior Vice President, Infrastructure Solutions Group Specialty Sales, APJC, Dell Technologies. "The journey to consistent ROI is complex and requires comprehensive support across every stage - strategy, use case development, data preparation, governance, optimisation, and scaling AI implementations. With the support from technology partners, enterprises can overcome adoption challenges and accelerate their path to impactful, results-driven AI outcomes."
Research methodology
The findings reflect multiple IDC data sources and surveys conducted between August 2023 and August 2024, spanning up to 919 respondents from various industries throughout APAC. The research highlights both opportunities and ongoing barriers as companies use AI and GenAI to drive productivity, efficiency, and new business models across the region.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
17 hours ago
- Scoop
Seabed Miner Slows Fast Track With 'Cynical' Response
An Australian company has slowed its fast track bid to mine the Taranaki seabed by failing to provide information demanded by officials. Officials have picked an expert panel to decide if Trans-Tasman Resources gets the green light to mine in the South Taranaki Bight under the Fast-Track Approvals Act. Announcing the five experts, associate panel convener Jennifer Caldwell wrote that a "cynical" approach by the would-be miners meant the process would take longer. "The Applicant's responses to some of my directions have provided little, if any assistance, and have in fact led to my taking a more conservative approach to timeframe," she said. The panel will start work in ten days, sit for 130 working days, and give their verdict in March next year. Caldwell wrote that Trans-Tasman Resources suggested the panel would need just 76 working days, saying any longer would be useless as there was "little room for real debate". "The Applicant's memo records its somewhat cynical expectation that: 'opponents who are invited to comment are very likely to raise any and every issue that they think may impede the project, regardless of merit'." "I infer from both the substance and tone of the memorandum that the Applicant considers any effort spent or additional time allocated towards issue resolution is pointless." Trans-Tasman Resources - a wholly-owned subsidiary of Australian gold and silver miners Manuka Resources - wants to suck up 50 million tonnes of the seabed every year for at least 20 years. After extracting ore containing iron, titanium and vanadium it would spit 45 million tonnes of sediment back into the waters of the Pātea Shoals. Trans-Tasman fought with opponents in an earlier fast-track conference over the miner's lack of engagement with mana whenua since first applying to mine twelve years ago, said Caldwell. "The Supreme Court made very clear the relevance of tikanga and found that the decision issued on the 2016 application failed to effectively grapple with the true effect of the proposal for iwi parties, amongst other related findings." Trans-Tasman Resources managing director Alan Eggers told New Plymouth District Council in June that the company had engaged with local iwi, taking into account their concerns "as best we understand them". "We're going to be working with South Taranaki iwi when we get our consents, whether they want us or not," he said. A week later NPDC joined South Taranaki and Whanganui district councils, declaring opposition to seabed mining. The company has been approached for comment. Caldwell said iwi authorities and Treaty settlement entities - and the hapū and iwi they represent - had fought the application through a decade of court cases, alongside Marine Area Coastal Act claimants and other parties. "[They] have continued to express concerns with the proposal and its impact on the environment and their cultural values and interests." "All those parties expect to participate in this application via the invitation-to-comment process," Caldwell wrote. "I strongly recommend that the Applicant commence engagement with the local authorities, relevant agencies, iwi authorities and Treaty settlement entities." The panel will be led by lawyer Kit Toogood KC, an arbitrator, investigator and legal advisor. Environmental commissioner and lawyer Loretta Lovell was nominated by local authorities and specialises in energy and resource management, also sitting on several iwi boards. Dr Hilke Giles is a coastal and systems scientist, Gavin Kemble a planner and expert witness and Natalie Hampson an economic consultant with a Masters science degree in geography. Caldwell is a lawyer of 30 years experience and a senior partner at Buddle Findlay, specialising in resource management, environmental and local government law. She said many invited specialists would advise on things like sediment plume modelling, commercial and customary fisheries, local tikanga and mātauranga, and international law. "The complex suite of conditions required for the approvals sought will require significant attention from the Expert Panel and that effort should not be underestimated."
NZ Herald
21 hours ago
- NZ Herald
Seabed miner slows fast track with ‘cynical' response
An Australian company has slowed its fast-track bid to mine the Taranaki seabed by failing to provide information demanded by officials. Officials have picked an expert panel to decide if Trans-Tasman Resources gets the green light to mine in the South Taranaki Bight under the Fast-Track Approvals Act. Announcing the
Techday NZ
21 hours ago
- Techday NZ
Why a confidence-inspiring contact centre is one of your organisation's greatest assets
In today's times, Australian customers want to deal with businesses whose service is swift, seamless and safe, ANZ vice president, Paul Rilstone, and CXTT Principal and Transformation Specialist, Michael Clark write. Are you one of the millions of Australians who's had the unwelcome news that your personal data has been compromised and is in the hands of a cyber-criminal or several? The accessing of customer records containing names, dates of birth, email addresses, phone numbers and other sensitive data has become an all-too-frequent event, as sophisticated actors continue to seek out weak spots in companies' IT defences. Increasingly, these clever, unscrupulous individuals aren't only using their technical expertise to gain an 'in'. They're adopting social engineering strategies; attempting to manipulate and deceive employees, via phishing, multi-factor authentication and email bombing gambits. Those working in contact centres, engaging with customers and members of the public day in, day out, are squarely in the firing line. A matter of trust However it occurs, a cyber incident erodes customer trust. If a business has the misfortune to experience one, rebuilding that trust is critical. That's where the contact centre has a vital role to play. Rapid digitisation means they've become the beating heart of many organisations – their primary interface with the world and a one-stop-shop for service delivery. Offering responsive, seamless and reliable service is critical, and in the wake of a crisis never more so. Organisations that do this well tend to find it easier to restore trust and rebuild their brands. Conversely, those that fall short, by making it difficult or painful for customers to engage with them, are laying themselves open to ongoing questions about the quality of their offering and operations. Improving your contact centre operations with AI In today's times, getting it right means making smart decisions about how AI should be incorporated into your contact centre. Deploying AI and automation technology can give your customers the power to self-serve their way through run-of-the-mill processes, and provide answers and resolutions to many of their more straightforward queries and issues. That's a win-win when it works well: no more hanging on the line makes for a better experience for customers and can deliver a sizeable efficiency dividend for your business too. The human touch But not all problems can or should be managed by AI. However sophisticated and intuitive it may become – and it continues to evolve and improve at bewildering speed – there will always be complex calls, emails and messages that require human scrutiny and judgment. Striking the optimal balance between what to automate and what to leave in human hands is no easy matter. In the rush to transform their contact centre operations, many companies are making the mistake of addressing the challenge with piecemeal solutions. Rather than re-imagining what stand-out customer service and experience look like and then using this game-changing technology to help them deliver it, they're replicating many of the same old processes, using AI, rather than human agents, to engage with their customers. All too often, the result is clunky, disjointed and unsatisfactory. Enlisting expert assistance That's why it pays to work with specialists who understand contact centre best practice and how AI technology can enable your organisation to achieve it. They'll map your workflows and processes and develop customer journeys where automated processes expedite and augment the work of your human agents. This will enable you to eliminate the duplication and double handing of data and orchestrate actions across all your critical systems. It's a smart way of ensuring the time and resources you're expending lead to high quality customer experiences that enhance your brand. Setting your organisation up for a stronger future In 2025, customers' trust is hard won and easily lost. Operating a responsive contact centre that offers personalised, seamless service can help you gain and retain it. If maintaining mind and market share matter to your organisation, it's well worth investing in the resources you need to get it right.
