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Apac bets on AI but businesses struggle to move beyond the basics: reports

Nurdianah Md Nur
Nurdianah Md Nur • 5 min read
Apac bets on AI but businesses struggle to move beyond the basics: reports
AI is forecast to lift Asia Pacific growth, but reports from Mastercard, AWS and LinkedIn show a two-tier AI economy emerging. Photo: Pexels
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Asia Pacific (Apac) governments are positioning the region to benefit from the global artificial intelligence (AI) boom, rolling out infrastructure investment, targeted fiscal support and industrial policies aimed at lifting productivity. However, a widening gap is emerging between policy ambition and corporate capability as most companies remain stuck at early stages of AI use despite rising adoption.

The Mastercard Economics Institute projects that AI adoption and targeted fiscal support will serve as meaningful tailwinds for Apac's growth in 2026. South Korea, Japan, India and Hong Kong are leading the region in both corporate and consumer uptake of AI tools. Governments across the region are backing this momentum with industrial policies targeting AI hubs, data centres, smart cities and semiconductor development.

Singapore offers a clear view of both the opportunity and the constraint. Amazon Web Services’ (AWS) Unlocking Singapore’s AI Potential 2025 report reveals that 48% of businesses in the city-state now use AI, up from 40% a year earlier.

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