TLDR: Enterprises across the Asia-Pacific (APAC) region are dramatically boosting their investments in Artificial Intelligence (AI) and Generative AI (GenAI), with spending projected to hit USD $23.9 billion by 2025. A new IDC InfoBrief, commissioned by Dell Technologies and NVIDIA, reveals that 84% of APAC organizations plan to allocate $1-2 million towards GenAI initiatives this year. While global AI budgets dedicate 33% to GenAI, APAC’s allocation rises to 38%. Key drivers include strategic partnerships, overcoming talent gaps, and addressing integration complexities, with significant adoption seen in banking, manufacturing, healthcare, energy, and retail sectors.
APAC Enterprises Accelerate AI and Generative AI Spending to $23.9 Billion by 2025
Sydney, Australia – August 28, 2025 – A new research report highlights a substantial surge in Artificial Intelligence (AI) and Generative AI (GenAI) investments across the Asia-Pacific (APAC) region, with enterprises projected to spend an impressive USD $23.9 billion on AI-centric server markets by 2025. This significant ramp-up is detailed in an IDC InfoBrief, “Creating Your AI Implementation Blueprint,” commissioned by Dell Technologies and NVIDIA, which surveyed 919 respondents from diverse APAC industries.
The research underscores a clear strategic shift, as organizations move beyond initial experimentation to pursue measurable business outcomes with AI, GenAI, and Machine Learning (ML). A striking 84% of APAC organizations intend to allocate between USD $1 million and $2 million towards GenAI initiatives this year alone. Notably, APAC’s commitment to GenAI surpasses the global average, with 38% of AI budgets dedicated to GenAI, compared to 33% globally. The remaining 61% of the budget in APAC is directed towards predictive and interpretative AI applications.
Key Trends and Challenges in AI Adoption
Despite this robust investment, the journey is not without its hurdles. The study reveals that 35% of ASEAN organizations are still in the early stages of AI and ML deployments, while 21% report systematic progress across multiple business functions. Organizations are actively seeking strategic support from technology partners to navigate persistent challenges, including talent gaps, integration complexities, and stringent data governance requirements.
Deployment strategies are also evolving. While public cloud and multi-cloud options remain dominant in 2024, there is a growing demand for private AI and on-premises deployments. This shift is driven by critical factors such as security considerations, cost efficiency, collaboration needs, and adherence to industry-specific regulations. Chief Information Officers are increasingly prioritizing data security and system integrity, irrespective of where AI workloads are hosted.
Skills shortages, regulatory compliance, and the imperative for data privacy and security are identified as primary concerns for organizations scaling GenAI. Over 72% of surveyed APAC enterprises emphasize the need for new hires with expertise in data and AI. Many expect technology partners to offer comprehensive guidance not only on infrastructure and model development but also on privacy, system trust, and regulatory adherence.
Broadening Industry Focus and Use Cases
AI adoption is accelerating across a wide spectrum of industries. Sectors such as banking and financial services, manufacturing, energy, healthcare, and retail are at the forefront. GenAI use cases are expanding rapidly, encompassing critical areas like customer service, supply chain optimization, diagnostics, and fraud detection. The survey indicates that 87.4% of APAC organizations are deploying more than 10 GenAI use cases this year, with a quarter (25.6%) anticipating exceeding 100 use cases in 2025.
In the banking and financial services sector, AI adoption stands at 84%, with GenAI deployed by 67% of organizations. Spending in this sector is projected to grow at a compound annual growth rate of 25–31% between 2023 and 2028. Fraud detection and process efficiency are key applications, and 72% of professionals in this sector foresee disruption from GenAI within the next 18 months.
The manufacturing sector reports 78% AI adoption and 54% GenAI adoption, focusing on supply chain optimization, predictive maintenance, and quality control. Healthcare organizations show even higher rates, with 86% AI and 59% GenAI adoption for applications such as diagnostics, patient monitoring, and workflow automation. Energy companies are leveraging AI for grid management and predictive analytics, while retailers are enhancing customer engagement and operational streamlining.
The Role of External Partnerships
Despite the evident growth, talent shortages, data privacy concerns, and integration complexities persist as significant barriers. To bridge these gaps, many organizations are increasingly relying on external partners. The report highlights that 60% of APAC enterprises depend on external developers for AI applications, compared to 30% developing solutions in-house and only 10% utilizing commercial off-the-shelf solutions.
The IDC InfoBrief advocates for a structured approach to AI adoption, emphasizing the prioritization of high-impact use cases and the establishment of a robust foundation built on people, processes, and technology. Recommended strategies for maximizing efficiency and ensuring long-term success include workforce training, stringent data governance, and collaborative partnerships with technology vendors.
Chris Kelly, Senior Vice President, Infrastructure Solutions Group Speciality Sales, APJC, Dell Technologies, commented on the findings: “The Asia Pacific region holds immense potential to lead the way in AI adoption and innovation. Now is the time for enterprises to move beyond proof of concept (POC) and focus on achieving measurable return on investment (ROI),” said Chris Kelly, Senior Vice President, Infrastructure Solutions Group Speciality Sales, APJC, Dell Technologies. “The journey to consistent ROI is complex and requires comprehensive support across every stage – strategy, use case development, data preparation, governance, optimisation, and scaling AI implementations. With the support from technology partners, enterprises can overcome adoption challenges and accelerate their path to impactful, results-driven AI outcomes.”
Also Read:
- Global AI Investments Projected to Soar 31.9% Annually, Reaching $1.3 Trillion by 2029
- Retail Sector Achieves High AI Satisfaction While Healthcare Leads Spending Amidst Implementation Challenges
The research, conducted between August 2023 and August 2024, provides a comprehensive overview of the trends, challenges, and strategic approaches to enterprise AI, GenAI, and ML implementation across the APAC region.
