Southeast Asian firms to increase AI spending by 67% in 2023: report

Photo credit: Unsplash

There is a surge in the adoption of AI among businesses in Asia Pacific (APAC), according to an IDC InfoBrief commissioned by Dataiku.

The proportion of APAC businesses using AI in their operations jumped from 39% in 2020 and 2021 to 76% last year.

The data showed an upward trend for AI adoption, particularly in Southeast Asia, where companies are poised to invest 67% more in AI and machine learning (ML) in 2023 compared to the previous year.

AI platforms will be the fastest-growing software category between 2022 and 2026, the report pointed out. In Southeast Asia specifically, spending on AI solutions is predicted to increase from US$174 million in 2022 to US$646 million in 2026. The market for this tech is also projected to have an annual growth rate of 40.8% from 2021 to 2026.

The banking, financial services, and insurance (BFSI) sector is the top spender, accounting for 26.6% of AI spending by vertical in Southeast Asia. Manufacturing follows at 17%, trailed by the government sector at 11%.

The adoption of AI platforms in the region is primarily driven by the need to improve employee productivity, accelerate new product introductions, and enhance risk management capabilities.

Despite these advancements, only 8% of regional organizations will consider AI/ML as a fundamental component of competitiveness, the report said.

See Also: Southeast Asia tech funding set for worst year since 2016


Lokesh Choudhary

Navigating the world of tech, one story at a time.

Related Post

Stay Updated on all that's new add noteworthy

Subscribe Now