A growing number of Asia-Pacific firms are turning to artificial intelligence-powered low-code solutions in response to the rapid pace of digital transformation, according to analyst firm IDC. This shift highlights the region’s focus on innovation amid challenges posed by older architectures and high maintenance costs.
AI-powered low-code solutions include tools that enable users can write computer code without the need for extensive coding knowledge or technical skills.
IDC found that over 60 per cent of applications used in Asia-Pacific are legacy systems. These systems are often costly to maintain and lack the flexibility required to support modern business needs. In addition, the shortage of IT talent, outdated frameworks, and low developer productivity can slow down the modernisation process.
To address these issues, 68 per cent of Asia-Pacific enterprises are turning to modern development tools—including low code, integrated development environments (IDEs), and DevOps.
Within the region, Southeast Asia and Hong Kong lead with 49 per cent of enterprises prioritising low code for automation solutions, followed by India (35 per cent) and Australia (31 per cent).
Low-code platforms can speed up software development by enabling faster application creation with less coding. AI-powered low-code solutions enhance this capability by automating complex processes and provide intelligent insights, which boosts efficiency and drives innovation.
As a result, 25 per cent of Asia-Pacific enterprises are now integrating generative AI (GenAI) into developer tools to enable more intelligent application development.
This trend is consistent across the region, with a notable uptake in Australia (25 per cent), India (24 per cent), Japan (26 per cent), and Southeast Asia (23 per cent).
“We are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between GenAI and low code,” said Mark Weaser, vice president for Asia-Pacific at OutSystems, a software development tool company, which sponsored the IDC research.
Intelligent app development
IDC also forecasts that by 2026, 40 per cent of new applications in Asia-Pacific will be “intelligent apps” that incorporate GenAI.
GenAI has demonstrated significant impact in software development and design, which include increased productivity (61 per cent), high-value developer tasks and creativity (50 per cent), and accelerated developer velocity (40 per cent).
IDC also found that AI and automation initiatives, along with application development platforms, are among the most resilient to budget cuts, even in uncertain economic climates. Notably, 30 per cent of Asia-Pacific businesses will pay a premium of 11-20 per cent to integrate GenAI features into their app development environments.
“Our research shows that many businesses in the region are actively considering opportunities to layer GenAI with low-code technologies,” said Daniel-Zoe Jimenez, vice-president for digital innovation, software, CX, SMB/DNB and channels research at IDC Asia/Pacific.
Global growth in low-code adoption
Low-code adoption continues to accelerate across APAC, with one-third (33 per cent) of enterprises recognising it as a critical tool for driving automation and future-proofing their businesses.
“Our research reveals that organisations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity,” said said Dhiraj Pramod Badgujar, senior research manager for XOps software development and AI developer strategies practice at IDC Asia/Pacific.
This trend is not limited to Asia-Pacific – IDC predicts that by 2025, more than 60 per cent of enterprises globally will adopt low-code technologies to enable faster application delivery and improve operational efficiency.
Gartner’s research concurs with IDC’s findings, predicting that by 2028, 60 per cent of software development organisations will use enterprise low-code application platforms (LCAPs) as their main internal developer platform, up from 10 per cent in 2024.
Furthermore, by 2029, LCAPs are expected to support mission-critical application development in 80 per cent of businesses worldwide, a significant increase from 15 per cent in 2024.
