While enterprise AI spending is on the rise, organisations are deploying AI faster than they are able to measure its feasibility, according to a study by research firm IDC, commissioned by Expereo.
Motivated by AI’s potential or by the fear of lagging behind, 70 per cent of organisations are investing in AI, but are behind in disciplined evaluations of its return on investment (ROI). One in five (20 per cent) admit they are investing aggressively in AI with little evaluation, driven by the fear of being left behind.
The pressure is especially pronounced in the Asia-Pacific, where 37 per cent of organisations say they are investing aggressively with little evaluation. This compares with double the global average, 10 per cent in the United States, and 13 per cent in Europe. The pressure is most acute in Australia (45 per cent) and Vietnam (44 per cent).
The survey, which covered 800 technology leaders across Asia-Pacific, Europe and the US, found that AI has become one of the most urgent technology priorities for enterprises. Globally, 51 per cent of organisations said they plan to prioritise AI or machine learning investment over the next 12 months. In Asia-Pacific, that figure rises to 61 per cent.
Yet, the results do not always match expectations. Globally, 19 per cent surveyed said their AI implementations have exceeded expectations, and just 5 per cent say they have significantly exceeded them.
However, the Asia-Pacific region stands out with 40 per cent saying that implementations have exceeded or significantly exceeded expectations.
Globally, the main barriers to success are inadequate or poor-quality training data (51 per cent), higher-than-expected costs or ROI not achieved (47 per cent), and AI not performing as well as expected (46 per cent).
The picture is similar in Asia-Pacific, though costs are a greater issue, with 54 per cent citing cost overruns or ROI not achieved, rising to 80 per cent in Malaysia. Another 46 per cent said AI had not performed as expected.
Despite these challenges, organisations that have the right foundations in place are reporting gains, according to IDC. Across Asia-Pacific, 87 per cent said AI had improved productivity in the business units most affected by the technology, while 82 per cent reported improvements in quality of work.
Gaps in network and infrastructure readiness
Notably, network and infrastructure readiness remain major barriers to scaling AI successfully. Globally, 26 per cent of organisations whose AI implementations failed to meet expectations cited inadequate network or connectivity performance as a contributing factor. Underpinning many of these challenges is also a network and infrastructure readiness gap.
Globally, 26 per cent of organisations whose AI implementations have failed to meet expectations cite inadequate network or connectivity performance as a contributing factor.
Looking ahead, 54 per cent of organisations said they need more flexible and scalable networks to thrive in an AI-driven environment, while 51 per cent said they require greater resilience and reliability to maximise uptime.
In Asia-Pacific, the infrastructure gap is especially clear. Only 9 per cent of organisations said their network infrastructure is fully ready to support new AI, cloud and digital initiatives, while 37 per cent said their infrastructure will need upgrading or replacing soon.
The need for more flexible and scalable networks is particularly strong in Thailand and Singapore, where 74 per cent and 58 per cent of organisations respectively identified this as a priority.
“Asia-Pacific is moving aggressively on AI adoption, but many organisations are discovering that scaling AI successfully requires more than just investment in applications and models” said Eric Wong, president for Asia-Pacific for Expereo, which manages global telecom networks for large businesses.
“The underlying network, cloud connectivity, and operational readiness matter just as much,” he added.
In the region, there has been a broad push to move AI from experimentation into mainstream business use. At the ATxSummit event last month in Singapore, big US AI firms committed to develop the technology in Asia-Pacific.
OpenAI plans to establish its first Applied AI Lab outside the US in Singapore, while Google DeepMind has partnered with Singapore to develop AI for areas such as education, healthcare and scientific research.
Singapore has also said it wants to support 10,000 firms in AI adoption, particularly across sectors such as manufacturing, healthcare and finance.
