At the recent IDC FutureScape event held in Singapore, IDC revealed its technology predictions for 2025-2029, highlighting the transformative role artificial intelligence (AI) will play in driving efficiency, innovation, and revenue growth for businesses across the Asia/Pacific Japan (APJ) region.
IDC predicts that by 2027, enterprises in the region will aim for an ambitious 80% success rate in generative AI (GenAI) initiatives, paving the way for significant gains in efficiency and revenue.
Currently, the success rate of GenAI initiatives stands at 62%. However, IDC anticipates a paradigm shift where enterprises move beyond isolated pilot projects to integrate AI comprehensively into core operations. By embedding AI into strategic frameworks, organizations can achieve measurable outcomes and accelerate their innovation journey.
IDC also forecasts AI to become a major driver of economic growth in the APJ region. AI-related spending is anticipated to grow 1.7 times faster than overall digital technology investments in the next three years, with a projected $1.6 trillion economic impact by the end of 2027.
To assist businesses in navigating this AI-driven transformation, IDC has outlined seven critical pillars for success:
- Strategy: The effective scaling of AI requires close collaboration between IT and business teams. Poor coordination is a leading cause of low success rates in AI initiatives. IDC predicts that by 2026, over one-third of organizations will still be mired in the experimental phase of AI projects. To break free, organizations must focus on enterprise-wide use cases to ensure tangible ROI.
- Governance: Responsible AI governance is crucial for high GenAI success rates. IDC forecasts that by 2025, 70% of organizations will formalize policies to address AI risks such as ethics, privacy, and brand integrity. This alignment of AI governance with strategic business goals will help mitigate potential risks.
- People: Overcoming early-stage AI deployment challenges requires proper training and alignment between executives and employees. IDC projects that by 2027, more than 50% of A2000 enterprises will rely on GenAI platforms to automate and enhance IT training and employee upskilling efforts.
- Applications: GenAI-infused applications are revolutionizing business decision-making, creating new opportunities for employee and organizational value. By late 2026, IDC predicts that 50% of APJ organizations will leverage AI-driven assistants, advisors, and agents to improve decision-making processes.
- AI Platforms: Many businesses struggle with fragmented AI tools. IDC forecasts that by 2028, 75% of enterprises with a unified AI platform strategy will achieve greater value from their AI investments by connecting processes across broader business functions.
- Data: High-quality data is essential for AI success, yet many organizations still face challenges with “dark data.” To optimize costs and improve governance, IDC expects that by 2025, 45% of A2000 companies will adopt multicloud data platforms. Furthermore, by 2027, the adoption of data-as-a-product architectures will help break down data silos in half of the region’s large enterprises.
- Infrastructure: While current infrastructure supports AI experimentation, scaling AI to production remains costly and challenging. By 2028, IDC predicts that 75% of enterprise AI workloads will be deployed on hybrid, purpose-built infrastructures to improve performance, cost-efficiency, and compliance, thereby accelerating time to value.
The “AI Pivot” that is set to place in 2025, is not just an aspirational goal but a strategic imperative for businesses in the APJ region. Organizations that tackle challenges head-on and prioritize AI integration will unlock new revenue streams, elevate customer experiences, and secure long-term advantages in an increasingly digital economy.
With AI investments poised to outpace other digital technologies, businesses that act decisively will shape the future of innovation and efficiency in the APJ market.
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