Survey: AI Investment Surge in Asia Pacific Driven by Fear of Missing Out, Not Measured Success

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Survey: AI Investment Surge in Asia Pacific Driven by Fear of Missing Out, Not Measured Success

SINGAPORE – Enterprise spending on artificial intelligence (AI) is experiencing rapid growth, with organizations eager to implement the technology faster than they can assess its effectiveness. A recent IDC InfoBrief, commissioned by Expereo, reveals that approximately 70% of organizations are investing in AI, primarily motivated by its potential benefits and the fear of falling behind competitors. However, many lack a structured approach to evaluating return on investment (ROI), with one in five (20%) admitting to aggressive AI investments without thorough assessment.

Regional Insights: APAC’s Unique Challenges

In the Asia Pacific (APAC) region, the urgency is even more pronounced. A staggering 37% of organizations report aggressive investments in AI with minimal evaluation, nearly double the global average. This trend is particularly evident in Australia (45%) and Vietnam (44%), while over one-third of organizations in Singapore share similar sentiments.

The IDC InfoBrief, based on a survey of 800 technology leaders across APAC, Europe, and the US, indicates that AI has become a top priority for technology investments. Fifty-one percent of organizations globally plan to prioritize AI or machine learning investments in the next year, with this figure rising to 61% in APAC. Despite this enthusiasm, only 19% of global organizations report that their AI implementations have exceeded expectations, and a mere 5% claim significant success.

Performance Gaps and Underlying Issues

While 40% of organizations in APAC report that their AI implementations have met or exceeded expectations—above the global average—many still fall short of their goals. The most frequently cited reasons for underperformance include inadequate or poor-quality training data (51%), unexpected costs or unmet ROI (47%), and AI not performing as anticipated (46%). In APAC, the situation mirrors these concerns, with 49% attributing issues to poor-quality training data and 54% citing cost overruns or unmet ROI, particularly notable in Malaysia where this figure rises to 80%.

Organizations that establish the right foundational elements report significant benefits. In APAC, 87% of organizations indicate productivity improvements in units most affected by AI, and 82% note enhancements in work quality.

Infrastructure Readiness: A Critical Factor

A significant challenge lies in the readiness of network and infrastructure to support AI initiatives. Globally, 26% of organizations whose AI implementations have not met expectations attribute this to inadequate network performance. Looking ahead, 54% of organizations express the need for more flexible and scalable networks to thrive in an AI-driven landscape, while 51% seek greater resilience and reliability to maximize uptime. In APAC, only 9% of organizations consider their network infrastructure fully prepared for new AI, cloud, and digital initiatives, with 37% indicating a need for upgrades or replacements soon. The urgency is particularly acute in Thailand (74%) and Singapore (58%).

Ben Elms, CEO of Expereo, emphasizes the importance of network infrastructure, stating that while every enterprise is investing in AI, a noticeable gap exists between AI ambitions and actual outcomes. He notes that the effectiveness of AI is contingent on the underlying infrastructure designed to support it. Elms asserts that without resilient, scalable, cloud-optimized networks, even well-funded AI initiatives will struggle to deliver ROI.

The Need for Comprehensive Strategies

APAC is at the forefront of AI adoption, with 35% of organizations reporting extensive use of AI across their operations, compared to a global average of 25%. However, mere adoption is insufficient without robust foundational elements in place. Eric Wong, President of APAC at Expereo, highlights that successful scaling of AI requires more than just investment in applications and models; it necessitates a focus on network, cloud connectivity, and operational readiness. Wong notes that organizations that proactively address these foundational aspects tend to achieve stronger outcomes and quicker operational impacts from their AI initiatives.

As organizations increasingly recognize the long-term risks associated with unchecked AI investments, the survey reveals that 54% of global tech leaders identify the emergence of new security risks as a significant concern. Additionally, 39% express worries about losing track of AI-related costs and ROI as the technology becomes more embedded in their operations. In APAC, this concern is heightened, with 41% of technology leaders worried about oversight of AI-related costs and ROI, a figure that escalates to 54% in Malaysia. Digital sovereignty is also gaining traction, with 38% of APAC organizations prioritizing it as they seek to maintain control over data amid a complex regulatory environment.

For further insights, the complete IDC InfoBrief, titled Enterprise Horizons 2026: Where Innovation Meets Reality, is available here.

Source: www.zawya.com

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Published on 2026-06-12 05:05:00 • By the Editorial Desk

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