APAC enterprises to prioritise AI ROI by 2025, says report

Asia-Pacific enterprises are expected to focus more on maximising the return on investment (ROI) of their AI projects as they move beyond initial experimentation by 2025.

A report titled "APAC AI Outlook 2025," commissioned by IBM, indicates that over half (54%) of the enterprises in the region anticipate AI to bring longer-term benefits in innovation and revenue generation. The development of cost-effective AI solutions, custom-built open-source models, and seamless integrations between various vendors are identified as vital elements for their strategies.

The report highlights a shift from initial short-term AI projects towards more substantial applications with potential benefits in core business functions. Nearly 60% of surveyed organisations expect to experience benefits from their AI investments within two to five years, while only 11% foresee returns within the next two years.

In 2025, the primary areas where APAC organisations will focus their AI investments include enhancing customer experience (21%), back-office business process automation (18%), and sales automation and customer lifecycle management (16%). Key challenges identified in achieving these goals include tackling data complexity (39%), high costs of implementation (36%), and a limited number of defined use cases (35%).

"While we've seen exciting glimpses of AI's potential, many organisations are still struggling to harness its full power," said Hans Dekkers, General Manager of IBM Asia Pacific. "In 2025, the focus of AI will shift beyond low-risk experiments in areas of the business such as employee productivity and customer experience, towards broader strategic goals based on competitive advantage and improved ROI. Smaller, targeted models will gain traction, along with flexible open-source architecture and the ability to manage seamless integration of AI platforms from any tech provider. And the ultimate goal is to achieve a human-centric AI future."

The "APAC AI Outlook 2025" explores key trends and barriers that organisations need to overcome to leverage AI's transformative potential. The research also provides insights from 17 industry leaders in the region who are setting best practices in AI adoption.

Among the five strategic trends identified in the report, AI-led revenue generation, smaller specialised open-source models, new tools for AI integration, AI agents redefining workflows, and human-centred innovation are emphasised. The drive is towards a strategic AI approach where projects are prioritised based on business impact, and localised open-source models are seen as a sustainable choice, reducing data requirements and environmental impact.

The "Unified AI" concept promotes leveraging open-source models to enhance innovation and operational efficiencies, ensuring seamless integrations across different platforms. Meanwhile, AI agents aim to create autonomous workflows that work alongside human employees, potentially improving operational efficiency.

"Human beings are indispensable in the evolution of AI. People need to be involved at every stage of the technology – this includes maintaining oversight of critical applications," said Ullrich Loeffler, CEO of Ecosystm. "The purpose of AI should always be to make a positive impact on the world, fostering a culture of trust, collaboration and co-creation. Progress should be premised on the idea that AI enhances rather than replaces humans, with both working and growing together."