Spending trails North America but adoption, effectiveness, and
growth are among the highest globally
MELBOURNE, Australia, Jan. 27,
2024 /PRNewswire/ -- Companies across Asia-Pacific (APAC) are quickly ramping up
investments in generative AI (GenAI) and entering a higher stage of
maturity, according to new research from the Infosys Knowledge
Institute (IKI), the research arm of Infosys (NSE,
BSE, NYSE: INFY), a global leader in next-generation digital
services and consulting. While APAC companies currently lag behind
their North American counterparts in GenAI spending, the research
forecasts a bigger increase than in any other region – 140% in the
next year. This translates to an estimated US$3.4 billion to be invested across Australia, New
Zealand, China,
Japan, India, and Singapore.
Infosys's Generative AI Radar APAC report includes
insights from interviews with business leaders and AI practitioners
and a survey of 1,000 respondents from Australia, New
Zealand, China,
Japan, India, and Singapore. The report also
highlights the following insights.
ANZ GenAI spending growth is among the highest in the APAC
region and globally
- Enterprises across APAC are investing heavily in GenAI.
China leads the region, with
investment expected to grow by more than 160% to US$2.1 billion, with Australia and New
Zealand growth close behind.
- ANZ investment is expected to grow by more than 150%, from
US$60 million to US$151 million in 2024.
Australian companies are more likely to deliver business
value from GenAI investments than European and North American
counterparts
- While Australia lags
Europe and North America in current investment (as a
proportion of GDP), the money it does spend, it spends more
effectively.
Biggest obstacles to APAC adoption are caution around
responsible AI, concerns about impact on reputation, and employee
readiness
- Responsible AI (data privacy, data usability, ethics and bias)
is a concern for APAC countries, though ANZ is less concerned about
data usability.
- APAC is more cautious about GenAI's business impact than
North America and Europe; almost 10% expect a negative impact on
reputation versus less than 5% for North
America and Europe.
- ANZ has the lowest level of employee readiness for generative
AI, at 56%, compared to nearly 70% in other companies in the
region. Firms in Australia and
New Zealand are mostly looking to
upskill their existing workforce to fill that gap.
APAC companies are more likely than other regions to see
product development and content generation areas of greater
impact
- More companies in APAC (30%) than North America (20%) and Europe (25%) expect GenAI to be effective for
streamlining product development and design – China drives this view, with nearly 35%
emphasising this area for maximum GenAI impact.
- APAC companies are also more likely to believe GenAI will
transform content generation and creativity. Twenty-two percent of
APAC firms held this sentiment, led by 30% Japanese companies
holding this view.
Andrew Groth, Executive Vice
President, Asia Pacific,
Infosys, said: "Generative AI is clearly a transformative
technology. Although company leaders across APAC have been more
cautious than companies in the rest of the world, they are set to
outpace firms in other regions. Additionally, they are already
delivering more value from their spending on generative AI. To
continue to make the most of this technology and to become AI-first
organisations, they should focus on talent development and making
AI more accessible through a platform ecosystem."
To read the full report, please visit here.
About Infosys
Infosys is a global leader in
next-generation digital services and consulting. Over 300,000 of
our people work to amplify human potential and create the next
opportunity for people, businesses and communities. We enable
clients in more than 56 countries to navigate their digital
transformation. With over four decades of experience in managing
the systems and workings of global enterprises, we expertly steer
clients, as they navigate their digital transformation powered by
cloud and AI. We enable them with an AI-first core, empower the
business with agile digital at scale and drive continuous
improvement with always-on learning through the transfer of digital
skills, expertise, and ideas from our innovation ecosystem. We are
deeply committed to being a well-governed, environmentally
sustainable organization where diverse talent thrives in an
inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY)
can help your enterprise navigate your next.
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concerning our future growth prospects, or our future financial or
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