APAC bizs quickly ramping up investments in generative AI: Infosys study

Companies across Asia-Pacific (APAC) are utilizing generative AI (GenAI) most effectively, with firms showing signs of more maturity and readiness compared to their North American counterparts, according to new research from the Infosys Knowledge Institute (IKI), the research arm of Infosys.

The Generative AI Radar APAC report estimates that APAC firms will increase their GenAI spending by 140% in 2025, with an estimated US$3.4 billion forecasted to be invested across Australia, New Zealand, China, Japan, India, and Singapore.

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."

The report includes insights from interviews with business leaders and AI practitioners and a survey of 1,000 executives at companies in Australia, New Zealand, China, Japan, India, and Singapore.

Below are the key insights from the report:

• Enterprises across APAC are making substantial investments 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 following closely behind.
• ANZ investment is expected to grow by more than 150%, from US$60 million to US$151 million in 2024.
• Aussie firms are more likely to deliver business value from GenAI investments than European and North American counterparts
• The biggest obstacles to APAC adoption are caution around responsible AI, concerns about the impact on reputation, and employee readiness
• APAC companies are more likely than other regions to see product development and content generation areas of greater impact, with China and Japan driving this view