Asia Pacific accelerates AI revolution:
$175 billion in AI and GenAI investments forecast by 2028

As artificial intelligence (AI) continues to redefine global industries, the Asia Pacific region is positioning itself as a central force in the next wave of intelligent innovation. This region includes powerhouses like China and Japan. According to the latest IDC Worldwide AI and Generative AI Spending Guide, AI and generative AI (GenAI) investments in the region are projected to soar to $175 billion by 2028. GenAI alone would account for $54.5 billion, or roughly 31% of the total AI market. This growth reflects a compound annual growth rate (CAGR) of 33.6% for overall AI and an astonishing 59.2% CAGR for GenAI. This signals an inflection point in digital transformation strategies across Asia Pacific, driven by the integration of AI in Asia.

From experimentation to operational intelligence

The sheer velocity of this growth marks a strategic transition. Businesses are no longer dabbling in AI; they are embedding it into their core. Whether it’s enhancing customer engagement, strengthening cybersecurity, automating processes, or revolutionizing decision-making, AI is becoming a staple. It spans across industries. GenAI is catalyzing innovation by enabling systems to generate content, code, insights, and designs with increasing fluency and sophistication.

“In 2024, there was a notable surge in AI infrastructure spending as companies in the Asia Pacific region began entering the AI development phase,” notes Deepika Giri, Head of Research for Big Data & AI at IDC Asia/Pacific. “Looking ahead, 2025 will be the year of unified AI platforms. These integrated frameworks will support the full lifecycle of AI models, including GenAI, predictive, and prescriptive analytics.”

These platforms will become the backbone of enterprise AI strategy. They will enable standardization, scalability, and secure deployment by tightly integrating data infrastructure, model governance, and application layers within the Asia Pacific region.

Sector leaders and strategic use cases

Leading the regional charge...