AI Spending in APeJ Will Grow 1.7x Faster Than Overall Digital Tech Investments : IDC

• 17 Feb 2025
• TM Team
• 0 Comments

IDC recently released the annual IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions - APeJ Implications report, highlighting the impact of Digital Business and AI transformation on enterprises across the Asia/Pacific (excluding Japan) (APeJ) region. IDC predicts that AI spending will grow at 1.7x the rate of overall digital technology spending in the next three years, generating an APeJ economic impact of over $1.6 trillion by the end of 2027.

IDC's prediction emphasizes that AI has transitioned from an emerging technology to a cornerstone of business strategy, with generative AI (GenAI) amplifying this shift. However, this accelerated growth comes with challenges, such as digital skills shortages and the imperative for responsible AI adoption.

"The integration of AI into the core of digital business strategies has created immense opportunities for APEJ enterprises," said Lawrence Cheok, associate research director for digital business and AI transformation strategies, IDC Asia/Pacific. "Leaders must prioritize addressing talent shortages, implementing responsible AI policies and aligning AI investments with strategic goals to unlock the full potential of AI-driven transformation."

Other key trends shaping the digital economy focus on how organizations can navigate the challenges and opportunities of AI-driven transformation to secure a competitive edge:

- Evolving Digital Role of CIO: IDC predicts by 2026, as digital transformation becomes core to business strategy, 40 percent of IT leaders will rise as business leaders to align people, operations and business models with digital technologies.

- Evaluating Digital ROI: IDC predicts by 2026, 40 percent of APeJ organizations will excel at measuring ROI of their digital tech investments, adopting a unified, data-driven approach to assess key financial, operational, customer and ecosystem metrics.

Increased Data Focus in AI Strategy: IDC predicts by 2025, 80 percent of enterprises will fail to treat data as a product and put in place the discipline to unlock the value of data for all stakeholders, delaying their AI-fueled business models further.

- Closing Digital Skill Gaps Become Critical: IDC predicts by 2027, 60 percent of APeJ organizations will experience digital skills shortages that cause project delays, slowing AI technology implementations into the following year.

IDC anticipates that organizations leveraging AI/GenAI effectively will widen the digital divide to become leaders in the digital economy. Key focus areas include aligning IT architectures and AI platforms with business workflows, fostering data-as-product strategies and embedding trust-centric AI governance. These shifts accelerate ROI and enable organizations to achieve sustainable growth while maintaining ethical practices.