Dell Technologies has published new research into AI adoption across businesses in the Asia-Pacific region (APAC) region, and outlines key trends, challenges and recommendations for organizations pursuing AI-driven transformation.
The study, conducted by IDC and commissioned by Dell Technologies and Nvidia, surveyed 919 respondents from various APAC industries. Research findings show that organizations across the region are increasingly seeking strategic support from technology partners to overcome obstacles such as talent gaps, integration complexity and data governance requirements as they advance towards measurable business outcomes with AI, Generative AI (Genai), and machine learning (ML).
Expenses and strategic priorities
IDC Infobrief's “Creating an AI Implementation BluePrint” highlights APAC's increased investment in AI and Genai. APAC's AI-centric server market is projected to reach US$23.9 billion by 2025, with 84% of organizations in the region planning to allocate US$1-2 million to the Genai initiative this year. The global organization devotes roughly 33% of its AI budget to Genai, but the percentage rises to 38% in APAC, with the remaining 61% becoming predictive and interpretive AI applications.
Despite this increase in investment, 35% of ASEAN organizations are in the early stages of AI and ML deployment, with 21% reporting systematic progress, saying adoption is spreading across multiple business functions.
Deployment and operational trends
Deployment strategies have evolved, with public cloud and multi-cloud options remaining key options for 2024. However, security considerations, costs, collaboration needs, and industry-specific regulations have led to increased demand for private AI and on-premises deployments. As organizations move from the popular AI model to the professional AI model, Chief Information Officers prioritize data security and system integrity, regardless of where AI workloads are hosted.
Lack of skills, regulatory requirements, and the need to ensure data privacy and security are the main concerns cited by organizations expanding Genai. Over 72% of APAC companies surveyed demonstrated the need for new recruiting data and AI knowledge. Many companies expect technology partners to not only support infrastructure and model development, but also provide guidance on privacy, system trust and regulatory compliance.
Industry Focus and Use Cases
AI adoption is accelerating across industries such as banking and financial services, manufacturing, energy, healthcare and retail, expanding use cases for Genai, including customer service, supply chain, diagnostics and fraud detection. According to the survey, 87.4% of APAC organizations have implemented more than 10 Genai use cases this year, with 25.6% expecting to exceed 100 use cases in 2025.
In banking and financial services, 84% of organizations employ AI and 67% deploy GENAI, and spending in this sector is projected to grow at a combined annual growth rate of 25-31% between 2023 and 2028. Key applications include fraud detection and process efficiency, with 72% of sector experts predicting disruptions from GenAI within 18 months.
The manufacturing sector has shown 78% AI adoption and 54% Genai adoption, focusing on supply chain optimization, predictive maintenance and quality control, while healthcare organizations report 86% AI and 59% Genai adoption for diagnosis, patient monitoring and workflow automation. Energy companies and retailers employ AI for grid management, predictive analytics, customer engagement, and operational streamlining.
Adoption barriers and external support
Despite the increased recruitment rate, talent shortages, data privacy and the complexity of integration remain major challenges. Many organizations rely on external partners to fill these gaps. 60% rely on external developers of AI applications, whereas 30% in-house development, 10% using off-the-shelf solutions.
The report highlights a structured approach to AI adoption, prioritizing high-impact use cases, and building a strong foundation based on people, processes and technology. Employee training, data governance, and collaboration with technology vendors are one of the recommended strategies to maximize efficiency and ensure long-term success.
“The Asia-Pacific region has great potential to lead the path to AI adoption and innovation. It's time for companies to focus on achieving measurable return on investment (ROI) beyond proof of concept (POC).” “The journey to consistent ROI is complex and requires comprehensive support at every stage, including strategy, use case development, data preparation, governance, optimization, and scaling AI implementation. Support from technology partners allows companies to overcome recruitment challenges and accelerate their path to impactful, outcome-driven AI outcomes.”
The findings are based on a survey conducted by IDC between August 2023 and August 2024, covering a variety of sectors and highlighting trends, challenges and strategic approaches to the implementation of enterprise AI, genai and ML across APAC.
