Only 25% of APAC enterprises view AI use as transformative: report

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Azunta Gaviola

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10 months ago

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Singapore – Only a quarter of enterprises in the Asia Pacific region consider their current use of artificial intelligence to be transformative, signalling the need for greater investment in digital infrastructure to unlock its full potential. This is according to the latest report from IT services and consulting firm Digital Realty. 

Despite the said figure, many enterprises in Singapore (46%), South Korea (66%), and Hong Kong (45%) rated themselves as mature in AI adoption. 

Across the region, several IT leaders also recognise the essential role of strategic data management in unlocking AI’s potential. According to the survey, 65% of companies are actively executing a formal data strategy for their current or planned IT locations, noting 77% of them have adopted a distributed data approach to overcome data gravity challenges.

Another 72% of enterprises have also integrated data location strategies into their AI plans, enabling them to place high-density storage and processing capacity in key locations to maximise the performance of artificial intelligence. 

A significant 56% also revealed plans to expand their infrastructure in one to five more locations within the next two years. This strategic expansion will support compliance with data sovereignty regulations and enable them to scale AI workloads for their operations. 

Meanwhile, infrastructure challenges remain a barrier to successful AI investments in the region, as more than half (56%) of Asia Pacific enterprises lack the necessary digital infrastructure required for both data and AI success. These challenges include insufficient data storage for large AI datasets (64%), inadequate computational power for AI processing (55%), and ensuring reliable connections to distributed data sources (49%). 

In addition, IT leaders in Asia Pacific further emphasise the need for data centre providers to support secure data interactions between users, networks, clouds, and IT providers within a single platform. 

Key requirements for this initiative include infrastructure capable of managing AI’s power and energy demands for data storage, processing, and hosting (51%), proximity of high-performing AI workloads to data and users (46%), and compliance with AI and data privacy regulations (45%).

Additionally, sustainability is a major focus in Asia Pacific, with 59% of respondents indicating that their sustainability objectives are the primary influence on their AI strategy.

Serene Nah, managing director and head of Asia Pacific at Digital Realty, said, “In Asia Pacific, the race to harness AI’s power is accelerating. Businesses are realising that AI is not just a buzzword but a strategic imperative for driving innovation and growth.”

“The key to success lies in a data-centric infrastructure that can seamlessly integrate data from various sources, deliver high-performance computing, and ensure robust connectivity. By prioritizing sustainability and leveraging cutting-edge technologies, organizations can unlock the full potential of AI while minimizing environmental impact,” Nah further explained.

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Video Title Here: The Indonesian on-ground activation status

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