Artificial intelligence spending in the Asia-Pacific region is expected to surge to US$78.4 billion by 2027, according to International Data Corp. (IDC)’s latest Worldwide Artificial Intelligence Spending Guide.
The IDC is forecasting a compound annual growth rate of 25.5% for the 2022-2027 period.
The increase in spending on AI, including software, services, and hardware, reflects a shift to leveraging technology in companies’ operations, as well as in improving customer experience and keeping up with the ever-changing market.
China leads in AI spending
China leads in AI adoption in the Asia-Pacific in terms of AI spending, according to IDC, accounting for 50% in the region. This is expected to reach nearly US$38.4 billion by 2027 at a compound annual growth rate of 24.8%.
Meanwhile, Japan is expected to have a US$12 billion investment in AI by 2027, rising at a compound annual growth rate of 25%. AI is being adopted by Japanese industries to improve productivity, quality control, risk management and customer experiences, thereby driving economic growth and technological leadership.
AI spending in various industries
A majority of AI investment in professional services is directed on AI infrastructure provisioning, wherein infrastructure service providers create and manage the IT infrastructure for AI systems. End users gain access to these resources required for computing and storage for AI system development or the provision of AI services.
Meanwhile, in the banking industry, AI is changing customer experiences through personalised financial recommendations and efficiently detecting fraudulent activity or the increased risk of fraud.
The industry’s investment in AI-driven algorithms makes way for secure transactions and anticipates customer needs, assisting in narrowing down the best available option and making a better decision.
Retail industries are harnessing AI to transform the way customers interact with their products and services. AI-enabled customer service agents, personalised recommendations, and dynamic pricing strategies boost customer engagement.
