Generative AI Takes Center Stage as Top Priority for 83% of APAC Business Leaders

Generative AI (Gen AI) is quickly becoming a major focus for businesses in the Asia-Pacific (APAC) region, with 83% of C-suite executives ranking it among their top three priorities. However, while enthusiasm is high, only 54% of these leaders report having a clearly defined Gen AI strategy in place, and another 40% are just beginning to develop one. These findings come from a Salesforce study that surveyed 1,243 executives from large companies across APAC.

The primary drivers behind Gen AI adoption in the region include the desire to create more innovative customer and employee experiences (44%), meet growing customer demands for faster, personalized services (44%), and improve productivity and operational efficiency (43%).

When it comes to overseeing Gen AI integration, the responsibility largely falls on CEOs, according to 37% of respondents, followed by Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) at 25%, and department heads at 19%. As for the areas where Gen AI is expected to have the most positive impact, executives highlighted information technology (42%), operations (31%), customer service (30%), and research and insights (28%).

Despite the widespread interest in Gen AI, the majority (93%) of APAC business leaders acknowledge significant barriers to its adoption. These challenges include accessibility and inclusivity (37%), a lack of training and skill-building opportunities (31%), reliance on incomplete data to train AI models (30%), inaccurate AI outputs (30%), and the cost of implementation (30%).

Generative AI in Singapore: A Focus on Staying Competitive

In Singapore, a similar study by Salesforce shows that 87% of C-suite executives also consider Gen AI a top three priority. Of those, 48% already have a clear Gen AI strategy, while 47% are just starting to craft one. However, motivations for adoption in Singapore differ slightly from those in the broader APAC region. Leaders in Singapore are primarily driven by the need to stay at the forefront of technology (43%), maintain competitiveness (42%), and foster innovation in customer and employee experiences (42%).

Similar to the APAC region, CEOs in Singapore are seen as key figures responsible for ensuring successful Gen AI integration, with 42% of respondents placing this responsibility on them, followed by CIOs and CTOs at 31%, and department heads at 18%. The areas expected to benefit most from Gen AI include information technology (40%), operations (33%), finance (29%), and customer service (28%).

However, barriers to adoption remain high in Singapore as well, with 95% of executives identifying obstacles. These include accessibility and inclusivity (43%), a lack of skill-building opportunities (33%), incomplete data for AI training (31%), and concerns over governance (31%).

Investment in Gen AI Accelerates Across Sectors

A separate report from the Capgemini Research Institute reveals that Gen AI investment is on the rise globally. Around 80% of organizations are ramping up their investments in Gen AI, with none reducing their spending compared to the previous year. Additionally, nearly a quarter (24%) of companies have now integrated Gen AI into some or most of their operations, a significant jump from just 6% the year before.

The retail sector, in particular, has seen a notable uptick in Gen AI implementation, with 40% of companies in the industry now utilizing the technology—more than double the 17% reported in 2023.

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