According to International Data Corporation (IDC)up to dateThe data shows that the Asia-Pacific region is about to undertake a transformative journey ofGenerative AI(GenAI) is showing a surge in adoption.IDC's forecasts indicate that spending in this area will soar to $26 billion by 2027, with a compound annual growth rate (CAGR) from 2022 to 2027 of 95.41 TP3T.
GenAI, a branch of computer science that enables computers to create new content from existing materials, is gaining increasing traction across a wide range of industries, and IDC predicts that the technology will revolutionize the next wave of AI innovation and technological advances.
"We predict that investments in GenAI will peak in the next two years, followed by a period of stabilization." Deepika Giri, head of research, big data and artificial intelligence at IDC APJ, said in a media release. "China is expected to maintain its position as the dominant market for GenAI, while Japan and India will be the fastest-growing markets in the coming years."
IDC's Global AI and Generative AI Spending Guide measures spending on technologies that analyze, organize, access, and deliver consulting services based on a variety of unstructured information. The spending guide quantifies the AI opportunity by providing data for 38 use cases across 27 industries in nine regions and 32 countries.GenAI technology is evolving in three phases: foundation building, widespread adoption, and unified AI services. These phases include infrastructure enhancements, widespread adoption of AI platforms, and rapid integration for competitive advantage.
"GenAI is not a transient trend." IDC Asia PacificadvancedVinayaka Venkatesh, Market Analyst, said. "With the ability to generate entirely new content across a variety of mediums such as images, videos, code and marketing materials, it promises to realize significant efficiency gains and pave the way for innovative creative opportunities that give a competitive edge."
He noted that a significant portion of organizations have already adopted generative AI or are in the early stages of experimenting with models.
The financial services industry is expected to reach $4.3 billion by 2027, growing at a CAGR of 96.71 TP3T.GenAI is revolutionizing operations, automating tasks such as fraud detection and document creation, while providing personalized services.
In the software and information services industry, GenAI is streamlining marketing, data analytics, and software development processes to improve productivity and efficiency. Governments are using GenAI to enhance service delivery and stimulate job growth through education and training programs. Retailers are also using GenAI to personalize experiences, automate tasks, and improve customer engagement.