APAC business will increase investment in generative AI in 2024, expenditure will reach up to 3.4 billion US dollars

According to Infosys Research, Asia Pacific businesses are increasing investment in Generative AI (GenAI) and spending on this technology is expected to almost triple to US$3.4 billion in 2024 in Australia, New Zealand, China, Japan, India and Singapore.

It says that while spending lags North America, APAC's acceptance, effectiveness and growth are the highest globally.

Asia-Pacific businesses are investing in generative AI at a faster rate and are reaching a more advanced stage of development, according to research from Infosys Knowledge Institute (IKI), the research arm of the IT major.

Although APAC businesses are now spending less on GenAI than their North American counterparts, the research predicts a greater increase than any other region—140 percent.

This indicates that Australia, New Zealand, China, Japan, India, and Singapore will receive investments totaling US$3.4 billion. Insights from business executives and AI practitioners as well as a survey of 1,000 respondents from Australia, New Zealand, China, Japan, India, and Singapore are included in Infosys' Generative AI Radar APAC report.

Businesses in APAC are making significant investments in GenAI. China is the leader in the area, with investment growth predicted to reach US$2.1 billion, an increase of more than 160%, followed closely by Australia and New Zealand.

According to the study's findings, investment in Australia and New Zealand (ANZ) is predicted to rise from US$60 million to US$151 million in 2024—a more than 150 percent increase."

The main obstacles to the adoption of AI in APAC are employee readiness, concerns about the impact on reputation, and prudence regarding responsible AI.

While ANZ is less concerned with data usability, APAC countries are concerned with responsible AI (data privacy, data usability, ethics, and bias).