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Home Technology

A1000 to allocate over half of the IT budget to AI initiatives

FutureCIO Editors by FutureCIO Editors
January 26, 2024
Photo by Pixabay: https://www.pexels.com/photo/blue-bright-lights-373543/

Photo by Pixabay: https://www.pexels.com/photo/blue-bright-lights-373543/

By 2025, the Top 1000 organizations in Asia (A1000) will allocate over 50% of their core IT spend on AI initiatives, according to IDC FutureScape: Worldwide Artificial Intelligence and Automation 2024 Predictions — Asia/Pacific (Excluding Japan) Implications.

AI-driven predictions for 2024 and beyond

By 2026, IDC predicts that 70% of cloud and software platform providers in the Asia Pacific will reduce GenAI risk by integrating GenAI safety and governance with their primary services.

By 2027, GenAI digital assistants will be the User Interface for 30% of interactions with enterprise software in A1000, including software development. The figure will be higher for operating business processes like customer engagement.

IDC also predicts AI to drive productivity gains, create new job opportunities, and stimulate economic growth. 

Further, infrastructure and computing power will be critical for AI. IDC projects the spending on server accelerators (GPU, FPGA, DPU, and AI ASICs and ASSPs) will invert compared with server CPUs by 2027.

Tech investment initiatives

Dr. Lily Phan

"IDC's FutureScape predicts that AI and automation technologies will remain central to tech investment initiatives. They are needed to lower operational costs, reduce staffing pressure, revamp end-user experience, and democratize decision-making power. The adaptability and efficiency offered by AI and automation solutions can provide the technologies that can mitigate staff shortage and economic challenges," says Dr. Lily Phan, research director of Intelligent Automation at IDC Asia/Pacific.

Related:  Consumer sector leads AI adoption
Tags: Artificial Intelligenceautomationclouddigital transformationIDC
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