A comprehensive Deloitte study reveals that 90% of students and 72% of employees across Indonesia, Malaysia, Philippines, Thailand, and Vietnam have used generative AI, with daily usage expected to increase by 232% over the next five years. 56% of APAC businesses have already deployed chatbots, copilots, and AI assistants, outpacing Europe and North America. The acceleration comes as organizations shift from pilot programs to production-scale deployments driven by competitive pressure and economic uncertainty.

72% of APAC finance leaders expect AI to have significant impact on their finance function within three years, while Southeast Asia's micro, small, and medium enterprises are using AI-assisted development tools to enable staff to build applications and automate processes themselves. This democratization is particularly pronounced in markets where technical teams are scarce, creating new opportunities for AI-driven productivity gains.

From Singapore's financial hubs to Malaysia's factories, businesses are trading sprawling, generic models for precision-engineered AI built for specific industries. GenAI saves daily users an average of 6.0 hours at work and 5.3 hours at university, with 77% of Southeast Asians believing GenAI will enhance social outcomes and 69% expecting it will mean Asia Pacific has a greater role in the global economy.

Australian organisations are investing in AI, but the gap with global peers is growing when it comes to realising transformation at scale, with the real challenge shifting from pilots to production and unlocking full value across the business. While 28% of Australian respondents have moved at least 40% of their AI pilots into production, most remain in experimentation mode, though over half expect to reach production scale within six months.

Australian Firms Trail APAC Peers Despite AI Investment Push

59% of enterprise-scale organizations in India had AI actively in use, with 74% of Indian early adopters accelerating AI investment in the prior 24 months. The top barriers in India were limited AI skills and expertise (30%), lack of tools or platforms (28%), and difficulty integrating and scaling AI (27%). India has significantly lower regulatory hurdles compared to other markets, with only 9.6% of leaders citing regulation as a primary constraint.

India's AI Enterprise Adoption Reaches 59% as Investment Accelerates

86% of students and 67% of employees in Singapore have used GenAI, with daily usage expected to increase by 203% over the next five years. Those incorporating GenAI into work routines see benefits including increased speed at completing tasks and improved quality of outputs, with GenAI saving daily users an average of 4.4 hours at work and 4.5 hours at university.

Singapore Maintains AI Leadership as GenAI Usage Surges 203%

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New data shows Asian enterprises lead global AI adoption with 90% Southeast Asian students using GenAI, while 77% of APAC CFOs accelerate investment

72% APAC finance leaders expect AI impact within 3 years, outpace

Deloitte study reveals 56% of APAC businesses already deploy chatbots and AI assistants, outpacing global peers

56% of APAC businesses have already deployed chatbots, copilots, and AI assistants, outpacing Europe and North America, with this scale emerging under pressure to deliver competitive edge while weathering economic headwinds and geopolitical risk. The diverse regulatory landscapes across Australia, Japan, India, and Indonesia are strengthening localisation and AI governance frameworks, creating both challenges and opportunities for enterprises scaling AI across multiple markets.

2026 will be the year boardrooms define ROI as not just amounts saved, but also growth enabled, market share captured, and possibilities unlocked, with success increasingly defined by AI's impact on the company's ability to grow and thrive rather than survive. This shift reflects the maturing of AI from a cost-reduction tool to a strategic growth enabler across the region.

Regional enterprises outpace Western peers in moving beyond experimentation to measurable business impact

APAC Leading Global Shift from AI Pilots to Production Scale

APAC Enterprises Race to Scale AI as 72% Expect Business Impact

Digital Realty, the world's largest cloud-neutral data center platform, announced targeting nearly S$7 billion of total investment in Singapore, with more than S$4.3 billion planned for new data center developments building on existing investments. Serene Nah, Managing Director and Head of Asia Pacific at Digital Realty, explained that Singapore is emerging as a critical hub for AI inference, where organizations need secure, highly connected infrastructure close to where data is created and consumed. The company has nearly doubled its Singapore workforce to over 300 employees over three years and expects to grow to 400 by 2030, with nearly 90% being Singapore nationals.

In the second half of 2026, Digital Realty plans to launch a Digital Realty Innovation Lab at its Loyang facility, providing customers with a fully supported environment to develop, test, and validate AI and hybrid cloud solutions before wider deployment. The company already operates its Global Command Center in Singapore, a 24/7 monitoring hub that reinforces the country's role as a trusted base for critical digital infrastructure operations. Singapore has had a data center moratorium since 2019 but is relaxing restrictions, with Equinix, GDS, Microsoft, and others receiving 80MW of capacity allocation in 2023, though Digital reportedly missed out on that round.

Unlike AI training workloads that can be geographically dispersed, inference demands proximity to users, networks and data, making Singapore's strong connectivity and trusted operating environment increasingly strategic for high-value, latency-sensitive AI applications. Deloitte estimates Southeast Asia's AI market could reach approximately US$65 billion by 2035. With its nearly S$7 billion investment target, expanded workforce, and growing innovation capabilities, Digital Realty is positioned to support Singapore's evolution as a leading AI infrastructure hub for Asia Pacific.

Digital Realty relocated and expanded its Asia Pacific regional office to IOI Central Boulevard in July 2025, with further expansion anticipated in 2026, while strengthening Singapore's ecosystem through operational and innovation capabilities including its Global Command Center. The planned Digital Realty Innovation Lab at the Loyang facility will provide customers with a fully supported environment to develop, test, and validate AI and hybrid cloud solutions prior to wider deployment.

Singapore's relaxation of its data center moratorium, which has been in place since 2019, signals government confidence in managing the balance between digital infrastructure growth and sustainability concerns. Digital Realty's engagement with local institutions, including hosting AI Open Houses for National University of Singapore students, demonstrates commitment to developing Singapore's next generation of digital infrastructure talent.

Digital Realty's S$7B Bet Validates Singapore AI Strategy

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US data center giant commits record sum to cement Singapore's role as regional AI infrastructure anchor.

Digital Realty's S$7 billion investment target demonstrates confidence in Singapore's role as the region's AI infrastructure anchor, reflecting the city-state's emergence as the preferred location for AI inference workloads across Asia Pacific. Singapore's strong connectivity, trusted operating environment, and established data governance approach make it increasingly strategic for high-value, latency-sensitive AI applications that require proximity to users and data.

Private equity investment has shifted towards digital infrastructure required to support AI-enabled workloads, including data centers and fiber platforms, with Singapore remaining the clear center of private equity activity in Southeast Asia. Digital Realty is also investing in Singapore's broader digital infrastructure ecosystem, collaborating with partners on early-stage quantum data center initiatives to prepare for the next frontier of compute.

Digital Realty's record investment signals broader trend of enterprise AI infrastructure consolidation in the region.

Singapore Cements Position as APAC AI Infrastructure Leader

Digital Realty Targets S$7B Singapore Investment for AI Hub

India has achieved the highest enterprise AI adoption rate globally at 40%, significantly outpacing the worldwide average of approximately 28%, according to Deloitte's 2026 State of AI report. The deployment is strongest across product development (62%), strategy and operations (56%), and marketing and sales (55%). Additionally, 94% of Indian organisations expect AI spending to increase over the next year, with security and compliance controls (68%) leading investment priorities. However, the rapid adoption comes with challenges. Despite broad implementation, deep technical AI expertise in Indian organisations lags behind global averages at just 0-4%, suggesting adoption is widespread but not yet sophisticated. To address this gap, 61% of Indian organisations have launched upskilling programs, with 59% offering incentives to drive AI adoption and 53% running workforce education initiatives. The findings underscore India's position as a global AI leader while highlighting the critical need for deeper technical capabilities. The comprehensive study surveyed over 3,200 senior leaders across 24 countries, making it one of the most extensive analyses of enterprise AI adoption to date. This leadership position could significantly influence India's competitive advantage in attracting international technology investment and partnerships.

Australia's enterprise AI adoption lags significantly behind India's 40% deployment rate, according to the Deloitte study. This gap could impact Australia's competitiveness in attracting AI-focused investments and partnerships, particularly as Indian companies demonstrate successful scaling across product development and operations. Australian businesses may need to accelerate their AI transformation strategies to maintain regional relevance in the growing artificial intelligence economy.

Australia Trails India's AI Adoption Leadership

India's 40% enterprise AI adoption rate leads the world, significantly outpacing the global average of 28%. Deployment is strongest in product development (62%), strategy and operations (56%), and marketing and sales (55%). However, technical expertise remains shallow at 0-4%, creating opportunities for skills development initiatives. The response has been significant, with 61% of organizations launching upskilling programs and 59% offering adoption incentives.

India Sets Global AI Standard Despite Skills Gap

Despite Singapore's reputation as a regional tech hub, India's 40% enterprise AI adoption rate sets a new benchmark that pressures Singapore's technology sector. With 94% of Indian organisations planning increased AI spending, Singapore companies must demonstrate similar commitment to maintain the city-state's position as the preferred location for regional tech headquarters and innovation centers.

Singapore Faces AI Adoption Challenge from India

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New Deloitte report reveals India outpaces world average by 12 percentage points despite expertise gaps.

India's commanding lead in enterprise AI adoption is reshaping competitive dynamics across the Asia-Pacific region. While Indian companies deploy AI at scale across product development and operations, regional competitors face pressure to accelerate their own digital transformation initiatives. The findings suggest a widening AI readiness gap that could influence foreign investment flows, with multinational corporations increasingly viewing India as the preferred base for AI-driven operations in APAC. However, the expertise gap at 0-4% technical depth indicates that while India leads in implementation, the race for AI sophistication remains competitive across Singapore, Australia, and other regional tech hubs.

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News Coverage

APAC Enterprises Race to Scale AI as 72% Expect Business Impact

Digital Realty Targets S$7B Singapore Investment for AI Hub

India Leads Global AI Enterprise Adoption at 40%