Indonesia ranks first in terms of AI implementation
(65%), followed by China (63%) and India (62%)
Gathering and integrating big data remains key
obstacle to AI adoption in the region
TAIWAN - Media OutReach - September
5, 2018 - Appier, a leading
artificial intelligence (AI) company, has announced findings from a
conducted by Forrester Consulting on behalf of Appier. The study, Artificial
Intelligence Is Critical To Accelerate Digital Transformation In Asia Pacific,
revealed that among the eight countries surveyed, Indonesia ranks first in
terms of AI implementation, with 65% of respondents there stating that they
have either implemented AI in their business or are even expanding or upgrading
The study, which aimed to shed
light on trends in AI adoption across Asia Pacific, also found that across the
region, more than half (53%) of those surveyed reported that their biggest
challenge in adopting AI technologies is gathering and integrating big data.
This demonstrates that enterprises are still struggling to cope with the
growing volume of business data -- more than ten years after the term "big data"
was first coined.
"Artificial intelligence is the
key to digital business; it has the potential to transform everything from
business operations to the customer experience," the study stated. "By
leveraging big data-driven AI platforms, enterprises can deliver business value
throughout the entire customer life cycle."
Among the key findings from the study:
Emerging economies lead in AI adoption
Figure 1. Percentage of AI implementation in businesses across APAC
According to the study,
Indonesia ranks first in terms of AI implementation (65%), followed by China
(63%) and India (62%). These three topped more developed economies such as
South Korea (57%), Singapore (50%), Japan (47%) and Taiwan (44%).
However, the survey revealed
that the gap is poised to narrow in the coming year: a higher percentage of
respondents in mature economies reported plans to implement AI technologies in
the next 12 months. Plans to implement AI technologies are highest in Australia
(35%), followed by Singapore (31%) and Taiwan (28%).
Improving business operations -- key goal driving AI adoption
AI is poised to reframe both how
businesses operate and how they interact with consumers. Broadly speaking, AI
offers two primary types of benefits to companies:
- Operational benefits: simpler
and more efficient business processes, greater scale, better risk prediction
- Customer engagement and
experience: better products and solutions, faster innovation, better insights
into consumer behavior
Of the two, businesses across
the region expect to realize the greatest benefits from AI in business
operations. Seventy-one percent of respondents identified improved business
efficiency as the benefit they most anticipated from implementing AI
technology, whereas 62% expected improved products or services. The lone
exception is Singapore, where businesses see the greatest gains from AI
accruing to customer engagement.
Figure 2. Priorities of businesses across APAC in using AI technologies
Product gains: improving existing solutions vs driving product
That's not to say businesses
don't expect AI to deliver better customer engagement, products and services.
When it comes to the role enterprises expect AI to play in product development,
the survey identified two overarching goals:
Interestingly, when mapped
between the two, companies across the region fell on different parts of the
spectrum. In markets such as Taiwan, South Korea and Indonesia, respondents
prioritize driving innovation with AI, whereas those in Japan, Singapore and
Australia want to use AI to improve their existing solutions.
Figure 3. Roles of AI implementation for businesses across APAC
Challenges threaten to slow AI adoption, impede gains
However, while the upside of
AI may be clear, there are still significant hurdles standing in the way of
broader AI adoption. More than 1 in 2 (53%) of Asia Pacific respondents stated
that the biggest problem they faced in adopting AI is gathering and integrating
big data. And, companies looking to adopt AI also struggle to overcome
operational issues, such as building cross-functional teams to work with
agility (51%), identifying the right data management and predictive analytics
platforms (52%), sourcing data from the diversified channels (49%), and
identifying the right technology or service partners (43%).
Figure 4. Challenges faced by businesses across APAC in using AI
"Forrester's survey reveals that enterprises looking to adopt AI face
real, urgent challenges that hinder their ability to take advantage of the many
benefits AI technology promises to offer," said Yu. "To clear these hurdles,
it's important for organizations to choose partners who offer expertise in
engineering and data management as well as in building precise and effective
models, so they can get started making the most of everything AI has to offer."
About the study
The study surveyed 260 business
and IT leaders involved in the decision-making process of deploying new
technologies such as AI. Respondents hailed from the retail, IT/telecom,
financial services and insurance industries across eight markets in Asia
Pacific, including Japan, South Korea, Singapore, Taiwan, China, India, Australia
and Indonesia. Learn more: https://www.appier.com/en/report_forrester.html.
Appier is a technology company
which aims to provide artificial intelligence (AI) platforms to help
enterprises solve their most challenging business problems. For more
information please visit www.appier.com.