Tech spending to focus on AI by 2025 – study

MANILA, Philippines — The largest organizations in Asia and the Pacific is seen allocating more than half of their information technology budget for the adoption of artificial intelligence (AI) starting 2025, according to the latest analysis of the International Data Corp. (IDC).

As a result, the IDC said organizations should be adjusted to AI use by 2028 to the point that their operations are no longer affected by disruptions and resources could be placed on new business opportunities.

The IDC believes AI platforms would be most useful in providing customer needs and raising employee productivity.

Furthermore, potential also lies in the customization of products to serve client demands given the capacity of AI channels to evaluate data quickly.

However, the IDC admitted that automation as a process would face multiple challenges ahead.

As a first, it expects regulators around the globe to come up with varying controls that could hinder industries from adopting AI in sensitive areas.

Similarly, developers of AI software would find it necessary to package security solutions in their AI services.

“By 2026, 70 percent of cloud and software platform providers in Asia-Pacific will bundle their AI safety and governance packages with their primary services, reducing the AI risk scenarios by three times,” IDC said.

”By 2027, AI regulatory divergence across geographies will also create major challenges for [the largest companies in Asia], increasing implementation time and effort for sensitive use cases by up to 20 percent,” it added.

IDC research director for intelligent automation Lily Phan said investments on AI transition have to be made for an organization to survive the industrial change.

She pointed out that AI use would speed up the way that work is done, lowering business costs by reducing job requirements.

Phan added that investing in AI platforms would help companies enhance their decision-making processes on AI’s ability to generate analysis from existing data.

With this, Phan believes that the AI proposition is attractive to organizations, as it raises the efficiency of day-to-day operations.

Recently, the world has witnessed a spike in the use of AI services, especially generative AI like ChatGPT, which can create images, texts and videos in an instant using available data.

Although seen as the future of work by investors, the technology is approached with caution for the dangers it poses, such as job displacement and violation of copyright.