APAC companies accelerate GenAI investments

GenAI investments: Companies across the Asia-Pacific (APAC) region are intensifying their investments in Generative AI (GenAI), according to a recent study conducted by the Infosys Knowledge Institute (IKI). The research, encapsulated in Infosys's Generative AI Radar APAC report, indicates a 140 per cent increase in GenAI spending in the coming year, translating to an estimated $3.4 billion investment across key markets, including Australia, New Zealand, China, Japan, India, and Singapore.

While APAC companies currently trail their North American counterparts in GenAI spending, the study underscores the region's commitment to closing the gap rapidly. Notably, China is leading the pack with a projected investment growth of over 160 per cent, reaching a staggering $2.1 billion. Australia and New Zealand are not far behind, with investments anticipated to surge by more than 150 per cent, from $60 million to $151 million in 2024.

One noteworthy finding is that Australian companies, despite lagging behind Europe and North America in current investment proportions, are more effective in deriving business value from their GenAI investments. The report attributes this efficiency to a more focused allocation of resources.

However, the study identifies several obstacles to GenAI adoption in the APAC region. These include caution surrounding responsible AI, concerns about its impact on reputation, and a notable discrepancy in employee readiness. ANZ (Australia and New Zealand) ranks lowest in employee readiness for generative AI at 56 per cent, emphasizing the need for upskilling efforts to bridge the gap.

Andrew Groth, Executive Vice President, Asia Pacific, Infosys, commented on the findings, stating, "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."

As APAC companies continue to embrace GenAI, the report recommends a strategic focus on talent development and creating a more accessible AI ecosystem through platform integration to unlock the full potential of this transformative technology.