GenAI spending in Asia-Pacific seen reaching $555 billion in 2030
Asia and the Pacific, including the Philippines, is on track to increase spending on generative artificial intelligence (AI) to over $555 billion by 2030, led by software and information services.
The Asia-Pacific region is projected to allocate over $555 billion towards generative artificial intelligence (AI) by 2030, according to the latest spending guide from International Data Corp. (IDC). The spending on generative AI is expected to surge by 36 percent yearly, increasing from $121.5 billion in 2025 to $555.2 billion in 2030.
China and Japan are leading this trend in the region, with automation industries driving the adoption of AI technology. Among industries, software and information services are set to contribute the largest share of the spending at 43 percent, followed by banking and financial services at 10 percent, government at 8 percent, and telecommunications at 6 percent.
IDC senior market analyst Vinayaka Venkatesh highlighted that the AI landscape in Asia-Pacific will be shaped by firms' transition from exploration to operational deployment of AI. Failure to keep pace with AI advancements could result in missed opportunities and revenue loss. The region's progress is also contingent on the development of energy infrastructure to support the high-power demands of AI computing.
Currently, 32 percent of AI spending in the region is at the entry level, involving cloud service subscriptions and data center expansion. The pandemic has spurred demand for generative AI, which can rapidly generate content like text and video from existing online materials.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
