A new study commissioned by IBM has revealed that Asia Pacific (APAC) organisations overestimate their actual AI maturity and struggle with fundamental challenges in adoption.
The report, “APAC AI-Driven Industry 4.0: Building Tomorrow’s Industries”, which evaluates the readiness of large enterprises in the Manufacturing and Energy & Utilities sectors across the region, starkly reveals a significant gap. While 85% of respondents rated themselves as “Data-Driven” or “AI-First,” the reality is that only 11% were in higher-maturity stages (9% Data-Driven; 2% AI-First).
Key barriers
One of the major barriers to AI readiness is the lack of a fully embedded Industry 4.0 strategy, a crucial element that only 10% of organisations possess. The majority (70%) have strategies without execution, siloed plans, or isolated pilots, which poses a risk of fragmented and ineffective progress.
Furthermore, the study found that 19% of organisations are concerned about employee resistance, and only 26% have formal upskilling or change-management programs in place. This is compounded by the fact that only 16% are confident in their in-house expertise, indicating a significant skills gap.
The whitepaper also revealed siloed execution, with 67% pursuing ad hoc, department-level use cases, and 73% lacking mechanisms for cross-team knowledge sharing. It also highlighted slow core modernisation, with only 40% having broadly adopted predictive maintenance, and just 37% enjoying real-time supply-chain visibility. Additionally, it noted limited AI integration. Only 10% treat AI/ML as a strategic pillar, despite 63% focusing on AI in isolated processes.
“APAC is uniquely positioned to lead in AI-driven Industry 4.0 transformation. With strong national strategies, active public-private collaboration, and a willingness to experiment, the region continues to advance through rapid innovation and real-world deployment,” said Ong Tun Kim, general manager of IBM Manufacturing Solutions. “The winners will be those who establish secure, adaptable digital foundations, and those who empower their people to turn bold ideas into action.”
