Asia-Pacific enterprises expand AI adoption on AWS amid regulatory demands

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Ansherina Baes

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2 minutes ago

Sydney, Australia – Enterprises across Asia-Pacific are modernising their Amazon Web Services (AWS) environments to support artificial intelligence (AI) adoption while meeting local regulatory requirements, according to research from technology research and advisory firm Information Services Group (ISG).

The research found that organisations are combining cloud migration, application modernisation and ongoing operations to improve agility and prepare for AI deployments at scale. Companies are also seeking strategies that balance shared technology infrastructure with country-specific requirements for data, talent and regulatory compliance.

“Effective AWS strategies in Asia Pacific require specific country-level capabilities with a shared operating backbone,” said Michael Gale, Partner and Regional leader of ISG Asia Pacific. 

“Companies can differentiate themselves by using common assets while meeting local data, talent and regulatory requirements,” Gale continued.

Application modernisation remains a priority, with businesses moving beyond basic infrastructure migration to update applications, databases and underlying systems. These efforts include modernising SAP environments, VMware estates and mainframes, alongside expanding cloud-native engineering on AWS. The aim is to reduce technical debt and establish stronger foundations for data-intensive workloads.

Enterprises are also deploying generative AI within AWS environments for applications such as knowledge assistants, customer service automation, software engineering and industry-specific tools. Amazon Bedrock‘s availability across more locations in the region supports organisations addressing data residency, latency and control requirements.

To operate AI applications reliably, companies are investing in data engineering, retrieval architectures, security testing and responsible AI controls.

At the same time, rising cloud consumption is prompting chief information officers and chief financial officers to scrutinise spending, resource utilisation, software licensing and workload placement. FinOps practices, cloud optimisation, automation and managed AWS operations are becoming increasingly important as businesses seek to control costs.

Organisations are also expanding observability and site reliability engineering practices to improve the performance, availability and resilience of business-critical cloud workloads.

“As AWS becomes embedded in core operations, enterprises in Asia Pacific are evaluating whether their operating models can absorb AI growth and regulatory change,” said Srinivasan P N, ISG Senior Lead Analyst and Lead Author of the report. 

“Providers that turn common tools into repeatable and industry-specific capabilities can help clients continuously improve cloud environments,” Srinivasan continued.

Other developments include greater emphasis on cross-region resilience and faster deployment of real-time data pipelines.

ISG evaluated 42 providers across four service categories: AWS professional services, managed services, data lifecycle management services, and AI-powered business transformation. Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, PwC, TCS and Wipro were named leaders across all four categories.

NTT DATA was recognised as a leader in three categories, while Infosys and Tech Mahindra were leaders in two each. ITC Infotech was named a leader in one category. LTM was recognised as a rising star in three categories, while Hitachi Digital Services, Kyndryl, NTT DATA and Tech Mahindra received the designation in one category each.

MHP was also named the global customer experience star performer among AWS ecosystem providers, based on customer satisfaction scores.

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