Tuesday, February 20, 2024
HomeArtificial Intelligence (AI)Limited AI Benefits for APAC Firms: Doubt and Data Management Hinder Progress

Limited AI Benefits for APAC Firms: Doubt and Data Management Hinder Progress

Artificial intelligence (AI) is expected to attract business interest in the Asia-Pacific region in the coming year. However, a new report from Forrester suggests that only 30% of organizations in the region have the necessary IT practices to fully benefit from AI. These practices include operational resilience, improved customer experience, and business model innovation. The report highlights that many organizations in the region are hindered by a risk-averse culture and inadequate data management capabilities. This will prevent them from harnessing the full potential of AI.

Frederic Giron, Forrester’s vice president and senior research director, explains that while some companies in the region see generative AI as a tool for efficiency, they will face obstacles such as a cautious work culture and gaps in data management capabilities. The report notes that the 30% of firms with more advanced IT practices are better prepared to leverage generative AI and are focused on evolving their business models. However, Giron emphasizes that this evolution will be a gradual process rather than an overnight success story.

The report also highlights two key forecasts for the region. It predicts that a fourth of multinational corporations will prioritize customer trust, but only 5% will have established measurable metrics to uphold this trust. Public trust is currently declining and companies in the region will struggle to operationalize customer trust. By the end of 2024, the report projects that 25% of large enterprises in Asia-Pacific will advocate for earning customer trust, but the challenge lies in turning words into measurable actions.

Despite these challenges, the adoption of generative AI is expected to improve customer experience. Customer service agents will be able to respond to questions faster and more effectively, leading to quicker resolution of issues and making customers feel heard. The report also predicts that advertising agencies will invest in custom AI applications, with the top 10 agencies collectively spending $50 million in partnerships to build such applications. These tools will enable clients to scale customized marketing campaigns.

Furthermore, business AI initiatives are expected to lead to a 50% improvement in productivity and problem-solving. Generative AI will enhance productivity across all IT roles, including developers. Organizations that invest in AI technology will see a boost in employees’ problem-solving time by up to 50%. However, the report notes that the adoption of prompt engineering services will be limited, with 80% of businesses adding prompt engineering talent internally to drive model grounding and value.

As regulators work on potential generative AI policies, Forrester recommends that organizations identify applications that may increase their risk exposure and invest in third-party risk management tools. The report concludes by stating that Asia-Pacific is preparing for a year of exploration and potential growth in 2024, with generative AI at the center of it all. The promise and potential of AI, combined with technological innovations, will inspire more tech and business leaders in the region to leverage AI in their transformation efforts to drive business outcomes.

Thomas Lyons
Thomas Lyons
Thomas Lyons is a well renowned journalist and seasoned reviewer, boasting an illustrious career spanning two decades in the global publishing realm. His expertise is widely sought after, making him a respected figure in the publishing industry. As the visionary founder of Top Rated, he has set a benchmark for authenticity and credibility in information dissemination. Driven by a profound passion for Artificial Intelligence, Thomas's keen insight pierces through the noise of the AI sector. He is dedicated to helping his readers find the most accurate, unbiased, and trusted news and reviews. As your guide in the evolving world of AI, Thomas ensures you're always informed and ahead of the curve.

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