Security, Governance Top Priorities as Asian Companies Embrace AI

A recent report by IDC FutureScape reveals a pivotal shift in the corporate landscape of Asia. By 2025, it predicted that Asia’s top 1000 organizations (A1000) will allocate more than 50% of their core IT spend on Artificial Intelligence (AI) initiatives, expected to lead to a double-digit increase in the rate of product and process innovations.

AI, a primary driver of innovation over the last few years, plays a crucial role in product development and operational processes. It fundamentally alters how enterprises function, meet customer needs, and enhance employee productivity. In North America, 46% of respondents are investing in or exploring Generative AI (GenAI) use cases. This number dramatically increases in Asia/Pacific, where it stands at 70%, and in EMEA, it reaches 76%.

However, with great power comes great responsibility. AI security and compliance stand at the forefront for technology vendors and users. Cloud and software platform providers are integrating GenAI safety measures into their offerings to mitigate IT risks. By 2026, 70% of cloud and software platform providers in Asia Pacific will bundle GenAI safety and governance packages with their primary services, significantly reducing GenAI risk scenarios.

Digital assistants have become prominent in the quest for improved productivity and employee experience. By 2027, GenAI digital assistants are expected to be the user interface for 30% of interactions with enterprise software in A1000 companies. Furthermore, two-thirds of these businesses will leverage a combination of generative AI and retrieval augmented generation (RAG) to power domain-specific self-service knowledge discovery, improving decision-making by 40%.

The implications of AI technologies extend far beyond corporate efficiency. By 2028, the economic impact of AI is expected to neutralize as organizations overcome initial disruption and focus resources on innovation and new business opportunities, potentially fueling economic expansion. Moreover, 10% of A1000 companies are projected to experiment with AGI (artificial general intelligence) systems, which could transform society.

Dr. Lily Phan, research director of intelligent automation at IDC Asia/Pacific, emphasizes the centrality of AI and automation technologies in tech investment initiatives. “They are needed to lower operational costs, reduce staffing pressure, revamp end-user experience, and democratize decision-making power,” she says.

This IDC FutureScape report sheds light on the rapid technological advancements and serves as a guide for technology leaders and business executives to shape their strategies in the coming years. With AI poised to be a transformative force, Asia’s corporate landscape is on the brink of an era of innovation, security, and growth.

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