APAC AI Spending Trends and Governance Challenges
AI spending among organizations in the Asia-Pacific (APAC) region has seen significant growth, increasing by 3.3 times compared to previous years. This surge is indicative of the region’s readiness to adopt AI technologies, as highlighted in the latest findings from a comprehensive study.
Key Findings from the Study
The study surveyed over 2,900 respondents, including more than 900 IT and business decision-makers from 12 APAC markets, revealing critical insights into the current state of AI adoption.
In the Association of Southeast Asian Nations (ASEAN+1) region, AI spending has increased by 2.7 times. This growth reflects a deeper understanding among organizations regarding the necessary steps to drive AI growth while recognizing its inherent risks.
Challenges in AI Governance
Despite the increase in spending, governance remains a significant challenge. Ethical issues and biases have been identified as the top risks associated with AI this year. Alarmingly, only 24% of organizations globally and 25% in APAC have fully implemented AI Governance, Risk, and Compliance (GRC) policies.
In terms of implementation, 24% of CIOs in the ASEAN+ region reported having fully established enterprise AI GRC policies, aligning closely with the global and APAC trends. This situation underscores the urgent need for a structured approach to managing AI-related risks.
AI Integration in the Philippines
The Philippines is making strides in AI integration, with a focus on innovation, digital infrastructure, and talent development across various sectors, including agriculture, manufacturing, BPO, and healthcare. Initiatives such as the National AI Roadmap (2021–2028) and plans for a National Center for AI Research demonstrate a concerted effort to enable research and practical deployment of AI technologies.
As noted by industry leaders, Filipino businesses are accelerating their digital transformation, with a clear focus on innovative and responsible AI solutions that drive ROI.
Future Prospects and Challenges
While AI spending is on the rise, the journey toward full-scale adoption remains complex. Approximately 47% of organizations in the ASEAN+ region are either evaluating or planning to implement AI within the next 12 months. This figure is notably lower than both the APAC (56%) and global (49%) averages, with challenges related to ROI emerging as key barriers to faster adoption.
Singapore has established itself as a regional hub with advanced AI maturity, while other ASEAN+ nations continue to grapple with limited resources and expertise in AI.
Infrastructure and Implementation Trends
The study also indicates that 42% of AI implementation spending in ASEAN+ is directed towards generative AI, with customer service applications emerging as the primary use case.
In terms of infrastructure, 68% of organizations in the ASEAN+ region utilize hybrid or on-premise solutions, while the remainder rely on public cloud services. This preference aligns with global trends, where 63% of organizations choose on-premise and hybrid infrastructures for AI deployment.
Experts suggest that organizations must focus not only on short-term gains but also on the efficiency of design, deployment, and integration of AI solutions. This approach will enable them to track the long-term impact of AI on their operations.
Conclusion
The evolving landscape of AI in the APAC region presents both opportunities and challenges. As organizations continue to invest in AI technologies, the need for robust governance and compliance frameworks becomes increasingly critical to ensure ethical and responsible AI adoption.
