The synergy of artificial intelligence and cloud computing has been reshaping industries in the Asia Pacific (APAC) region, paving the way for innovation and digital transformation.
An article from Oracle noted: "AI and cloud computing are deeply intertwined." The article posits that cloud computing providers were among the first to figure out how to utilise AI to deliver better services.
"AI systems are very good at making decisions in the confined world of an IT architecture, which allows cloud computing providers to automate a range of operations in their massive data centres. AI can provision and scale technology services, detect potential errors, monitor for signs of a cyberattack, and detect hints of fraud in a range of use cases," it continued.
With this foundation, cloud providers in the APAC region are now leveraging AI not just to improve internal operations, but to redefine their entire service ecosystem. Huawei Cloud, for example, has made AI a central part of its regional strategy.
Sunny Shang, president of Huawei Cloud Asia Pacific, shared that the company is placing AI at the core of its cloud strategy, integrating AI-native capabilities into cloud services.
Adoption hurdles in APAC
While cloud providers like Huawei Cloud continue to push forward with AI integration, many organisations in the APAC region still face roadblocks that slow down adoption, particularly in infrastructure and data access.
According to Shang, the current most pressing issue among APAC organisations is the scarcity of high-quality industry data, a vital factor for effective AI development.
"AI training requires substantial input of high-quality data, which accumulates over time through many industry projects," said Shang.
He pointed to China as an example, which has the most comprehensive range of industrial sectors globally based on the UN industrial classification.
"It's a complete industrial system, he said, "and a vast consumer base has amassed extensive data, forming the foundation for AI training."
To advance AI in the APAC region, Shang believes companies must prioritise addressing data integration while building capabilities in data governance, processing, and exchange.
Another significant barrier, he added, is the high technical threshold in building compute resource pools.
"Ensuring accessibility to these resources is essential for fostering AI growth," he emphasised.
Drawing from Huawei's experience, he outlined two viable approaches to address this.
"One involves governments leading the establishment of large-scale AI computing centres to empower industries and stimulate development," he said. "The other approach entails deploying AI on public clouds, which is a simple and economical way to access compute resources."
Generative AI, experimental or practical
Meanwhile, the rise of generative AI is offering a more tangible path forward. While infrastructure and data issues remain significant, its rapid development is opening new doors for consumers and enterprises.
Shang noted that "the majority of AI applications are consumer-facing (B2C), while the integration of AI into enterprise systems (B2B) presents a longer journey ahead. Nonetheless, numerous companies have embarked on this journey, integrating AI into their core operational workflows," he said.
According to Shang, AI is beneficial in public services through government AI models that understand intentions and facilitate the handling of public needs through interactive dialogue, leveraging advanced semantic understanding capabilities.
AI can also boost productivity in steel manufacturing. Shang noted that vast scenario-specific datasets are utilised for self-learning, automating tasks such as scrap steel grading and automated coal blending.
The Huawei executive added that the finance industry benefits from smart customer service systems, autonomously devising procedures and guidance tailored to client inquiries.
We believe that 'AI for Industries' is both imperative and achievable. Sunny Shang
"We believe that 'AI for Industries' is both imperative and achievable," he said.
Balancing act
However, as AI becomes more embedded in operations, concerns about ethics, privacy, and system vulnerabilities emerge.
A recent report by F5 has revealed a paradox in the adoption of AI: while consumers are recognising the benefits of AI, they remain cautious about potential security risks, ethical use, and its long-term impact on jobs and society.
Companies in the APAC region are striving to strike a balance between innovation and responsible AI and data governance.
It is our steadfast belief that AI is the way forward. Sunny Shang
"It is our steadfast belief that AI is the way forward. Individuals and enterprises alike must find their way to embrace AI." Shang shared. "At the same time, as the use of AI becomes more widespread in mission-critical business systems, enterprises confront new vulnerabilities including prompt injections, information leaks, and content compliance."
In Shang's view, organisations need a comprehensive, end-to-end security system for foundational models to ensure that these models generate value while safeguarding individual privacy, maintaining content compliance, and upholding informational authenticity.
"This security system encompasses both technological dimensions – extending beyond conventional cybersecurity defenses with tailored safeguards against AI-related threats ranging from eliminating prompt injections to detecting sensitive information leaks, filtering non-compliant content, and verifying content authenticity – and organisational aspects where businesses ought to proactively design structures, from organisation, talent, to governance, aligned with advancing AI capabilities," he said.
Scaling AI through the cloud
To meet both the technical and ethical demands of AI, Shang believes that organisations must consider scale, not just in infrastructure, but also in partnerships, upskilling, and shared innovation.
Shang encourages companies in APAC that are still early in their AI journey to take foundational steps, such as choosing the right cloud platform that integrates AI capabilities from the start.
Further, he encourages organisations to partner with ecosystem players, emphasising that collaboration is key to co-developing industry solutions.
"Our partners are the core driving force behind our sustained growth," said Shang in his keynote during the recent Huawei Cloud APAC Partner Summit 2025.
He also urges organisations to leverage training and competence centres to build foundational skills and capabilities before companies scale.
AI + Cloud
As technologies such as AI and cloud computing grow in the APAC region, the success of enterprises implementing them will not just rely on speed or scale, but on thoughtful deployment to improve operations, ease the workforce burden, and drive transformation.
