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Asia firms to spend over half of their IT spending on AI by 2025

Nurdianah Md Nur
Nurdianah Md Nur • 3 min read
Asia firms to spend over half of their IT spending on AI by 2025
Half of them will form strategic ties with cloud providers for generative AI platforms, developer tools, and infrastructure: IDC. Photo:
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The top 1000 firms in Asia (A1000) are expected to allocate over 50% of their core IT spend on artificial intelligence (AI) by 2025, according to an International Data Corp FutureScape report focusing on AI.

Seven in ten are already investing in or exploring the use of Generative AI. By 2026, two-thirds of A1000 businesses will leverage a combination of generative AI and retrieval augmented generation to power domain-specific self-service knowledge discovery, improving decision-making by 40%.

Global AI rules, however, may slow AI adoption. IDC predicts that by 2027, AI regulatory divergence across geographies will create major challenges for A2000 companies, which will increase the time and effort to implement AI for sensitive use cases by up to 20%.

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