Southeast Asian organisations appear keen to deploy agentic AI, according to a recently released study by IDC that says 42 per cent of them already use the technology, with another 4 per cent planning to do so in the coming 12 months.
If the research firm’s findings are accurate, this would mark a shift from small-scale experimentation to enterprise-wide implementation for AI integration in the region. The surge is driven by demands for higher productivity, faster product development, and improved service quality.
Some 75 per cent of Southeast Asian organisations believe agentic AI improves decision-making, while 72 per cent say it boosts productivity, according to the report commissioned by UiPath, a maker of robotic process automation (RPA) software.
It found that key industry adopters of agentic AI include the financial services, manufacturing, and retail and wholesale. For the region’s firms, the most promising agentic AI use cases include customer support automation (58 per cent), risk management and fraud detection (58 per cent), and productivity enhancement (56 per cent).
However, hurdles remain. The top challenges to large-scale adoption include AI governance and risk management (22 per cent), talent shortages (18 per cent), and high infrastructure costs (18 per cent).
For agentic AI specifically, Southeast Asian firms are concerned about data privacy breaches (51 per cent), security vulnerabilities due to their autonomous actions (48 per cent), and unintended consequences from complex interactions (47 per cent).
The implementation barriers include data security risks (57 per cent), high deployment costs (48 per cent), and integration issues (42 per cent).
Despite these concerns, 79 per cent of organisations in ASEAN are actively exploring agentic AI use cases, according to the study.
“Agentic automation is rapidly redefining business operations across Southeast Asia,” said DebDeep Sengupta, area vice-president for South Asia at UiPath.
While enterprises see the potential to streamline workflows and autonomously execute complex processes, he noted that trust and security remain key barriers.
“Becoming an AI-fueled business is no longer optional—it’s a strategic necessity,” said IDC’s associate vice president of AI Research, Deepika Giri.
“Many leaders in the region recognise its role in driving productivity, innovation, and resilience against future disruptions,” she added.
A separate study by IBM and Oxford Economics seems to confirm the growing agentic AI adoption as well. The survey of 2,000 chief executives globally, which include 210 in Asean, found that 61 per cent of the global leaders are already adopting agentic AI.
According to Abraham Thomas, managing partner for IBM Consulting for ASEAN, business leaders in the region face the dual challenge of proving AI’s return on investment while needing to build long-term capabilities to remain competitive.
This task is further complicated by the region’s fragmented digital landscape, marked by differing national regulations and inconsistent standards for cross-border data flow, he noted.
Within ASEAN, “Singapore stands out with its national AI strategy, and businesses must follow suit by building adaptable data foundations and investing in talent that can turn AI ambition into real results,” he added.
When it comes to adopting agentic AI, IDC’s recommendations include focusing on transparent human-agent ecosystems, robust governance frameworks, supporting transparent decision-making capabilities, and having strict compliance with data security and privacy standards.
Choosing the right agentic tools with scalable platforms and the ability to seamlessly integrate with existing systems and applications is also a consideration.
For ethical AI use, IDC stresses the need to strengthen governance frameworks with clear policies, standards, and regulatory guidelines. In addition, risk management practices and targeted skills development can help to overcome adoption barriers and ensure responsible AI deployment.
