Businesses in the Asia Pacific region are upping their game when it comes to investing in cutting-edge technology known as generative AI (GenAI). According to research conducted by Infosys, spending on this technology is set to nearly triple in 2024, reaching a whopping USD 3.4 billion across countries like Australia, New Zealand, China, Japan, India, and Singapore.
Despite trailing behind North America in terms of spending, the adoption, effectiveness, and growth of GenAI in the APAC region are among the highest globally, Infosys pointed out.
“It’s like APAC companies have suddenly realized GenAI’s potential and are diving headfirst into it,” remarked the research arm of Infosys, the Infosys Knowledge Institute (IKI).
The report, based on insights from interviews with business leaders, AI practitioners, and a survey of 1,000 respondents from the region, sheds light on the burgeoning interest in GenAI.
China leads the pack in terms of investment, with a staggering growth of over 160%, expected to reach USD 2.1 billion. Meanwhile, Australia and New Zealand aren’t far behind, poised for growth of over 150%, from USD 60 million to USD 151 million by 2024.
However, despite the enthusiasm, there are hurdles to overcome. Concerns about responsible AI, including data privacy, ethics, and bias, are holding some companies back. Interestingly, Australia and New Zealand seem less concerned about data usability compared to other countries in the region.
“APAC seems to be taking a more cautious approach towards GenAI’s impact on business, especially when it comes to reputation,” noted the report. In fact, almost 10% of respondents in the region anticipate a negative impact on reputation, compared to less than 5% in North America and Europe.
It seems like the APAC region is on the brink of a GenAI revolution, with businesses gearing up for a new era of innovation and growth, albeit with a hint of apprehension.