APAC Businesses Poorly Equipped to Leverage AI
- By Paul Mah
- February 14, 2024
An overwhelming number of IT leaders (86%) in APAC expect AI to increase developer productivity in their organizations over the next three years, and anticipate a huge increase in the large-language models (LLMs) they will use.
This is significantly greater than the 69% increase expected globally, according to a new Salesforce Connectivity Benchmark research by Vanson Bourne and Deloitte Digital.
In its 10th year, the study interviewed 1,050 IT leaders across the globe this year, with 400 hailing from APAC markets such as Singapore, Australia, Japan, and Hong Kong.
Data not harmonized
Despite the optimism about the use of generative AI, 69% say that their organization is ill-equipped to harmonize data systems to fully leverage AI. Unsurprisingly, this impedes the transition and further heightens the strain on IT teams.
According to the report, integration is a key hurdle to AI innovation. While AI drives efficiency and productivity, it is dependent on integrated data. Yet only an estimated 28% of apps within APAC organizations are connected and 82% of IT leaders report that integration challenges are hindering digital transformation within their organizations.
For instance, nearly three-quarters (70%) of customer experiences are digital, but only 26% of organizations report providing a completely connected user experience across all channels.
Indeed, 81% of respondents report that data silos are hindering their digital transformation efforts. 72% also feel that their current IT infrastructure makes their systems overly dependent on one another.
Barriers to AI adoption include integration (95%), security concerns (79%), ethical AI usage, and adoption (64%). A mere 2% report no significant barriers to utilizing their data for AI.
Tapping the full potential of AI
The report also pointed to a skills gap within IT teams that can only be closed through strategic collaboration and upskilling, to enable organizations to better leverage automation for both innovation and efficiency.
“A lack of integration is the top barrier to adopting emerging technologies, especially AI. And as demand grows for seamless, personalized customer experiences, the interoperability of systems is crucial for harnessing the full potential of data, AI, and automation. That’s why integration should be the cornerstone of every IT leader’s digital transformation efforts in 2024,” said Kurt Anderson, the managing director at Deloitte Consulting LLP.
Ultimately, the findings underscore the need for a robust data strategy, with a strong focus on data harmonization.
“The potential of AI is limited only by the data that organizations can connect it to, and the outcomes they can drive from it. The report shows that IT leaders across APAC are increasingly aware of these integration and automation challenges, and underscores the need for a robust data strategy, with a focus on data currency, reuse, and access,” said Brian Kealey, the vice president for APAC at MuleSoft.
“Data integration across applications through an enterprise API strategy will empower leaders to accelerate innovation and operationalize AI to drive business value and growth for the future,” said Kealey.
The full report can be accessed here (free registration).
Image credit: iStockphoto/pat138241
Paul Mah
Paul Mah is the editor of DSAITrends, where he report on the latest developments in data science and AI. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose.