AI Investment Boom in Asia Pacific Fuelled More by Fear of Missing Out Than Actual Results: IDC
Enterprise AI spending is climbing rapidly, with boards racing to
deploy the technology faster than they can measure whether it works. According
to the latest IDC InfoBrief, commissioned by Expereo, around 70% of
organizations are investing in AI, motivated by its potential or by the fear of
falling behind the competition, but they lag in disciplined ROI evaluation, and
one in five (20%) admit they are investing aggressively in AI with little
evaluation, driven by the fear of being left behind.
In Asia Pacific (APAC), that pressure
is even more pronounced as 37% of organizations admit investing aggressively with
little evaluation - nearly double the global average, and well ahead of the US
(10%) and Europe (13%). The pressure is most acute in Australia (45%) and
Vietnam (44%), while in Singapore, more than one in three organizations admit
the same.
The IDC InfoBrief, based on a survey of
800 technology leaders across APAC, Europe, and the US, found that AI has
become one of the most prioritized technology investments globally, with 51% of
organizations planning to prioritize AI or machine learning investment over the
next 12 months - rising to 61% across APAC. However, returns are failing to
keep pace with the hype. Just 19% of global organizations surveyed say their AI
implementations have exceeded expectations, and only 5% report they have
significantly exceeded them1.
Across APAC, 40% say implementations
have exceeded or significantly exceeded expectations - ahead of the global
average but still leaving the majority falling short. Globally, the most-cited
reasons for underperformance are inadequate or poor-quality training data
(51%), higher-than-expected costs or ROI not achieved (47%), and AI not
performing as well as expected (46%). For APAC specifically, the picture is
broadly similar - though costs bite harder: 49% cite poor-quality training
data, 54% cite cost overruns or ROI not achieved (rising to 80% in Malaysia),
and 46% say AI has simply not performed as expected.
Where organizations have the right
foundations in place, the results speak for themselves. Across APAC, 87% report
productivity improvements in the business units most affected by AI, and 82%
say quality of work has improved.
Underpinning many of these challenges
is also a network and infrastructure readiness gap. Globally, 26% of
organizations whose AI implementations have failed to meet expectations cite
inadequate network or connectivity performance as a contributing factor.
Looking ahead, 54% of organizations say they need more flexible and scalable
networks to thrive in an AI-driven environment, and 51% need greater resilience
and reliability to maximize uptime2. In APAC, the gap is acute as
only 9% of organizations describe their network infrastructure as fully ready
to support new AI, cloud, and digital initiatives, and 37% say it will need
upgrading or replacing soon. The need is most acute in Thailand (74%) and
Singapore (58%), both of which rank above the regional average on demand for
flexible, scalable networks. In Indonesia, nearly half of all organizations
(48%) say their infrastructure will need upgrading or replacing soon.
Ben Elms, CEO, Expereo, says: "Every enterprise we speak to
is investing in AI, yet the data shows a clear gap opening up between AI
ambition and AI outcomes. More often than not, that gap comes down to the
network underneath. AI only delivers on its promise when the infrastructure
carrying it is built to support it.
Without resilient, scalable,
cloud-optimized networks, even the most well-funded AI programs will struggle
to deliver ROI. Getting the network right is no longer an IT decision; it is
one of the most important conversations happening in the boardroom today to
help fulfill AI ambition."
APAC is also leading on adoption, with
35% of organizations reporting extensive AI use across the business, against a
global average of 25%3. Yet adoption alone is not enough without the
right foundations beneath it.
Eric Wong, President, APAC, Expereo, says: "Asia Pacific is moving
aggressively on AI adoption, but many organizations are discovering that
scaling AI successfully requires more than just investment in applications and
models. The underlying network, cloud connectivity, and operational readiness
matter just as much. Across the region, we are seeing enterprises reassess
whether their infrastructure is truly ready to support AI at scale,
particularly around performance, resilience, governance, and visibility. Organizations
that address those foundations early are generally seeing stronger outcomes and
faster operational impact from their AI initiatives."
Boardrooms are also waking up to the
longer-term risks of unchecked AI investment. According to the survey, 54% of
global tech leaders cite the creation of new security risks as a significant
potential future threat for their organization's use of AI, while 39% globally
are concerned about losing track of AI-related costs and ROI once the
technology is embedded across the business4. In APAC, that concern
is sharper still as 41% of technology leaders in the region are worried about
losing oversight of AI-related costs and ROI as adoption deepens - a figure
that rises to 54% in Malaysia. Digital sovereignty is also moving up the
strategic agenda, with 38% of APAC organizations rating it a high or top
priority as they look to retain control over data and navigate an increasingly
complex regulatory landscape.





























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