GenAI investments by APAC businesses to nearly triple, reach $3.4 billion in 2024: Infosys Research

Asia Pacific businesses are increasing investment in Generative AI (GenAI) and spending on the technology is projected to nearly triple to US$3.4 billion in 2024 across Australia, New Zealand, China, Japan, India and Singapore, according to Infosys Research .

It said that while spending lags North America, APAC’s acceptance, effectiveness and growth are the highest globally.

Also read: Real artificial intelligence: LinkedIn signals 65% job skills revolution by 2030 amid AI disruption

“Companies in Asia-Pacific are rapidly increasing investments in generative AI and are entering a higher stage of maturity,” Infosys Knowledge Institute (IKI), the IT major’s research arm, said in the research.

While APAC companies currently lag their North American counterparts in GenAI spending, the research projects a larger increase than any other region, at 140 percent.

“This means US$3.4 billion will be invested in Australia, New Zealand, China, Japan, India and Singapore,” it said.

Infosys’ Generative AI Radar APAC report includes insights from interviews with business leaders and AI practitioners and a survey of 1,000 respondents from Australia, New Zealand, China, Japan, India and Singapore.

Enterprises in APAC are investing heavily in GenAI. China leads the region, with investment expected to grow more than 160 percent to US$2.1 billion, with growth in Australia and New Zealand close behind.

The research findings showed, “Investment in ANZ (Australia and New Zealand) is expected to increase by more than 150 percent, from US$60 million to US$151 million in 2024.”

The biggest barriers to APAC adoption are caution about responsible AI, concerns about reputational impact, and employee readiness.

Responsible AI (data privacy, data usability, ethics and bias) is a concern for APAC countries, although ANZ is less concerned about data usability.

“APAC is more cautious about the business impact of GenAI than North America and Europe; It said about 10 percent of people expect a negative impact on reputation, while the figure is less than 5 percent in North America and Europe.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)