cl-au logo
Story image

IDC forecast ‘exploding’ cognitive/AI opportunities in APeJ service market in 2018

Opportunities for AI/Cognitive technologies across the outsourcing and project-orientated services market are exploding in the Asia-Pacific excluding Japan (APeJ) region, according to IDC.

The findings come from the analyst’s newly published market analysis perspective report, which forecasts a massive increase (approximately 78% year on year) in spending figures for AI/Cognitive technologies in the APeJ service market for this year.

IDC Australia research director Annemarie Kikos says, “Spending on AI/cognitive services is forecast to grow at a 78% five-year Compound Annual Growth Rate (CAGR) in APeJ, with the highest focus on Enterprise Applications (e.g. ERP) upgrades to include cognitive/AI functionality.”

With AI/Cognitive being top of mind for many organisations, IDC says the results of its C-suite barometer survey confirms that A/NZ C-level execs are seeing this as a key technology initiative to offer them a competitive advantage. 

However, IDC says some barriers to adoption remain, especially a lack of relevant skill sets and governance, plus regulatory implications in light of GDPR legislation in Europe.

According to IDC, robotic process automation (RPA) and conversational AI are key focus topics with 24% of organisations deploying chatbots or automated conversational interfaces in the next 12-24 months.

IDC Asia Pacific VP Chwee Kan Chua says, “we have looked at the various buyer perspectives, with the ‘quality of the data results’ perceived as top criteria for organisations considering Cognitive/AI solutions purchases”. 

“We are also seeing a preference for new spending rather than leveraging existing investments,” Chwee says.

At the end of last year, IDC announced their industry predictions for 2018 and beyond, where they predicted that by 2019, 40% of digital transformation initiatives will use AI services and by 2021, 75% of commercial enterprise apps will use AI.

They noted that an “AI war” is looming, as the major public cloud service providers offer an ever-expanding variety of AI-powered services, with digital services and apps without "AI inside" quickly falling behind competitors' pace of innovation.

Story image
Wipro invests in Microsoft partnership with dedicated business unit
Wipro has launched a Microsoft Business Unit designed to aid development of solutions for digital transformation. The unit will leverage Microsoft’s enterprise cloud services and will consist of a team of trained and certified Azure consultants and specialists.More
Story image
AIIA launches website hub for remote working support
The Australian Information Industry Association’s new site, Australian Business Continuity, provides support from the AIIA and its partners.More
Story image
Deep learning seeing widespread adoption in APAC region
As a sub-category of machine learning, deep learning is fast becoming part of mainstream AI deployments – new software to join the likes of Siri, Alexa and Cortana is currently being developed and will likely be introduced in the next few years, says GlobalData. More
Story image
Acronis appoints new APAC General Manager and launches Partners Programme
One of Morarji’s first objectives has been to launch the new Acronis Partner Programmes in APAC, in which the Acronis team will help channel partners and managed service providers (MSPs) expand their portfolios and deliver fast ROI.More
Story image
Dicker Data A/NZ open for business as countries face lockdown
Dicker Data’s founder and CEO David Dicker says the company is open for business and fully operational as Australia and New Zealand prepare for country-wide lockdowns.More
Story image
Hands-on review: Wacom One graphics tablet
With the current climate encouraging social isolation, I’ve been spending several hours a day searching out and embracing my inner artistic muse. More