APAC Businesses to Ramp Up Generative AI Spending by 140% in 2024 — Read Full Report

Companies in Asia-Pacific (APAC), especially in India and China, are poised to increase their spending on generative AI over the next year, according to a report by the Infosys Knowledge Institute (IKI). The generative AI spending in APAC is said to triple in 2024, surpassing US$3 billion.

In India, investment in foundational models is projected to surge by 165% to US$386 million, while APAC businesses are expected to collectively boost spending by over 140% to US$3.4 billion in 2024.

Despite lagging behind North American counterparts in GenAI spending at present, the report anticipates a substantial rise in APAC's investment, with key markets such as India, Australia, New Zealand, China, Japan, and Singapore driving this growth.

China leads the way among APAC countries, with a projected increase of 161%, reaching US$2.1 billion in spending. Japanese companies are expected to witness robust growth of 116%, going from US$334 million in 2023 to US$720 million in 2024. Meanwhile, Australia and Singapore are set to increase by 154% (US$142 million) and 83% (US$44 million) respectively, in the next 12 months.

However, the APAC region, excluding China, faced delays in accessing the technology due to the global shortage of GPUs. The report highlights that companies in Australia and New Zealand are more effective in spending on AI, generating greater business value compared to other APAC countries, Europe, and North America. Challenges to widespread adoption in APAC include caution around responsible AI, concerns about reputation impact, and lower employee readiness levels.

Despite being more cautious, APAC companies are expected to outpace firms in other regions in adopting GenAI, with a focus on product development and content generation. About 30% of APAC companies anticipate GenAI's effectiveness in streamlining product development and design, surpassing North America (20%) and Europe (25%).