AI and GenAI spending in the Asia Pacific region, including China and Japan, are expected to reach $175 billion by 2028, with a compound annual growth rate (CAGR) of 33.6 percent from 2023 to 2028, with investments, spanning software, services, and hardware designed for AI-driven systems, according to the IDC Worldwide AI and Generative AI Spending Guide.
Meanwhile, GenAI investments alone are forecasted to hit $54.5 billion by 2028, with a remarkable CAGR of 59.2 percent, accounting for approximately 31 percent of the total AI and GenAI market.
This surge in AI and GenAI investment highlights Asia/Pacific’s growing strategic role in shaping the global AI landscape. As businesses transition from experimentation to operational integration, AI is being embedded across critical functions — from customer engagement and decision-making to automation and cybersecurity. The rapid acceleration reflects the region’s commitment to digital transformation, with GenAI emerging as a catalyst for intelligent automation, innovation at scale, and new revenue models.
“In 2024, there was a notable surge in AI infrastructure spending as companies in the Asia/Pacific region began entering the AI development phase,” Deepika Giri, head of research, Big Data & AI, IDC APJ. “Looking ahead, 2025 will be the year of unified AI platforms that support AI agents — integrated frameworks that support the full lifecycle of AI models, including GenAI, predictive, prescriptive, and other emerging models. These platforms will connect applications, data, infrastructure, and governance, offering a more standardized and scalable approach to AI deployment.”
Industries across Asia/Pacific are rapidly adopting AI and GenAI to enhance efficiency, personalize customer experiences, and gain a competitive edge.
The software and information services sector is leading the charge, accounting for over 40 percent of total AI spending in 2025, driven by demand for AI infrastructure and development platforms. Financial services, especially banking, are leveraging AI to boost operational efficiency, improve fraud detection, and deliver hyper-personalized services. Meanwhile, the telecommunications and retail sectors are accelerating digital transformation with AI and GenAI — enhancing network efficiency, security, customer service, logistics, and inventory management to meet evolving consumer expectations in an increasingly digital-first market.
“AI adoption across Asia/Pacific is fostering smarter and more resilient business environments. Companies are integrating AI to enhance efficiency, reduce costs, and strengthen strategic decision-making,” said Vinayaka Venkatesh, senior market analyst, Data & Analytics, IDC Asia/Pacific.
“This shift toward AI-driven solutions is laying the foundation for a future centered on intelligent automation and continuous innovation,” he further noted.
