GenAI's ROI Dilemma: Are APAC Data Leaders Playing 4D Chess?

A fascinating paradox is unfolding in the Asia-Pacific GenAI landscape. A new study by Informatica reveals that despite a staggering 98% of APAC data leaders struggling to demonstrate the business value of their generative AI (GenAI) initiatives.

The CDO Insights 2025 survey, an annual poll of global data leaders across Europe, North America, and APAC, paints a picture of both excitement and apprehension. While APAC leads the charge in GenAI implementation (51%), surpassing both the U.S. (48%) and Europe (47%), a cloud of uncertainty hangs over its demonstrable ROI.

But at the same time, APAC data leaders are planning to increase investments in the technology. This begs the question: are APAC businesses blindly chasing the GenAI hype, or do they see something their Western counterparts are missing?

The massive ROI uncertainty

The most startling revelation in the study is the near-universal struggle to prove GenAI’s worth. A massive 98% of APAC organizations grappling with GenAI adoption admit they can’t show clear business value.

This isn't a minor concern; it's a fundamental challenge that threatens the very justification for these significant investments. Security and privacy concerns, AI ethics, and data reliability are cited as the primary culprits.

Interestingly, this ROI uncertainty isn't deterring APAC data leaders. A substantial 86% plan to boost their GenAI investments in 2025, second only to the U.S. (93%) and significantly ahead of Europe (82%).

This aggressive approach suggests a deep-seated belief in GenAI's transformative potential, even in the face of current challenges. Perhaps they are playing a long game, betting that the initial investment will pay off handsomely in the future.

This unwavering commitment to GenAI is coupled with a renewed focus on data management. 32% of APAC data leaders intend to increase their data management investments this year, driven by concerns about data quality (49%), privacy and protection (46%), and AI ethics (42%).

“One particular concern is attaining the readiness of their data that is required to achieve the transformative impact of AI,” Richard Scott, senior vice president for Asia Pacific & Japan at Informatica, pointed out. 

This renewed focus on data suggests a growing recognition that a robust data foundation is crucial for unlocking GenAI's true potential. APAC data leaders seem to understand that without clean, reliable, and ethically sourced data, GenAI is just a shiny toy with limited practical application.

Recognizing the human element in this technological revolution, APAC data leaders are prioritizing training (85%) more than their global counterparts. This proactive approach underscores the importance of equipping their workforce with the skills needed to responsibly navigate the GenAI landscape.

“A strong data foundation and strategy will be imperative to embedding trust in any company’s GenAI efforts,” commented Scott. “Our annual study findings also show that investments in areas like employee skillsets and a modern data management strategy will help achieve the business value the C-suite is seeking from AI.”

David Tan, chief data officer at Singapore-based Income Insurance, offers a glimpse into a more measured approach.

“At Income Insurance, our approach to data and AI integrates data governance and responsible AI frameworks, achieving a strategic balance between innovation and measured oversight,” Tan said in the press release. “To keep pace with the rapid changes driven by new technologies like GenAI, a strong foundation fosters confidence in effective cross-functional collaboration, enabling capability development and delivering measurable impact through a risk-calibrated approach.”

Tan's perspective suggests that APAC data leaders see a strategic, risk-calibrated approach as essential for navigating the rapidly changing GenAI landscape.

Bottom line

For data leaders, the key takeaways from this survey are clear:

• GenAI is not a magic bullet: While the potential is enormous, demonstrating clear ROI remains a significant hurdle. Focus on building a strong data foundation before diving headfirst into GenAI projects.
• Data is king: Clean, reliable, and ethically sourced data is essential for unlocking GenAI's true potential. Invest in data management capabilities to ensure your data is ready for the AI revolution.
• Talent matters: Equip your workforce with the skills and knowledge needed to navigate the GenAI landscape. Invest in training and development to ensure responsible AI usage.
• A strategic approach is crucial: Balance innovation with oversight. Implement robust data governance and responsible AI frameworks to mitigate risks and maximize the chances of success.
• Simplify your tech stack: Avoid the trap of using too many disparate tools. Streamline your data management infrastructure to avoid unnecessary complexities on your GenAI journey.

The APAC data landscape is at a critical juncture. The stage is set for a high-stakes game, and only time will tell who emerges as the winner. But, as the survey highlighted, APAC data leaders are done waiting.

Image credit: iStockphoto/Olivier Le Moal