Enterprises across Asia-Pacific are doubling down on artificial intelligence initiatives, with 96% of organisations planning to increase their AI investments by an average of 15% in 2026, while 88% of APAC organisations expect returns from AI projects this year, with an anticipated return on investment of $2.85 for every dollar invested. The report, which surveyed 920 technology leaders, suggested that the hype phase of AI is giving way to real-world projects, with about 66% of organisations in the region now either piloting or systematically adopting AI. Half of non-IT departments are now funding AI initiatives, with projects increasingly originating from marketing, finance and business units rather than the CIO's office alone, as successful AI adoption now relies on partnerships between IT and business teams.

As organisations move from building models to running them, AI infrastructure strategies are changing, with the industry focusing more on AI inferencing, where an AI model processes data to make predictions and deliver outputs, though Lenovo's APAC infrastructure president warned that not planning for inference costs could be detrimental, noting that inference can cost 15 times more than training over the lifetime of a model. By 2030, 75% of AI compute will be dedicated to inferencing, underscoring the strategic shift from model development to deployment. This operational focus reflects the region's evolution toward AI as a self-sustaining investment, with 95% of global executives expecting generative AI initiatives to be at least partially self-funded by 2026, as the most advanced organizations treat AI as a growth multiplier, using it to reinvent business models, create new products and unlock differentiated market positions.

The cross-industry transfer of AI innovations is quickly becoming APAC's competitive advantage, with breakthroughs in one sector inspiring advancements in another, helping enterprises leapfrog traditional development cycles, as the region is not just adopting AI but shaping what AI leadership looks like for the world. A recent IDC study found that 70% of Asia-Pacific organizations expect agentic AI to disrupt their business models within the next 18 months, while hybrid cloud will solidify its position as the standard operating model for intelligent enterprise systems in 2026. However, challenges remain: MIT's "State of AI in Business 2025" found that 95% of organisations struggle to generate meaningful ROI from AI, largely due to weak data foundations and integration gaps.

Australian organisations are running plenty of AI pilots, but 28% of Australian respondents have moved at least 40% of their AI pilots into production, with most yet to see broad enterprise-wide impact, though over half expect to reach this milestone within the next six months. AI is delivering meaningful productivity gains, with 61% of Australian companies reporting improved efficiency, however only 30% are using AI to deeply transform their ways of working, compared to 34% globally, with AI still about automating existing processes rather than fundamentally reimagining the business.

Australian Enterprises Trail Global AI Production Rates

Singapore organisations report widespread use of artificial intelligence, with 96% of Singapore respondents reporting some level of AI use, but only 23% rated their organisation as industry-leading in achieving ROI from AI. Singapore will launch a new "Champions of AI" program to support firms using AI to transform their business, with tailored support including enterprise transformation and workforce training. The country will expand its Enterprise Innovation Scheme with 400% tax deduction on qualifying AI expenditures, capped at S$50,000 per year for 2027 and 2028.

Singapore Leads AI Adoption Despite ROI Challenges

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920 technology leaders across Asia-Pacific reveal massive AI investment surge with 88% expecting returns, while inference costs threaten budgets.

APAC AI spend jumps 15% as 96% of enterprises scale production

Region shifts from AI experimentation to production with $2.85 ROI per dollar invested across 920 organizations surveyed.

Infrastructure leaders are warning that inference costs could be 15 times higher than training over a model's lifetime, with 75% of AI compute dedicated to inferencing by 2030. Organizations are embedding real-time cost visibility into model design decisions, showing financial impact of choices like model version, deployment region or inference patterns, with those adopting shift-left FinOps gaining decisive advantages in deploying AI applications that competitors cannot afford to match.

This shift represents AI moving from adoption to activation, driven by the verticalisation of agentic AI ecosystems and the rise of invisible, embedded intelligence inside core enterprise workflows, with modern integration platforms becoming the prerequisite for safe and scalable AI.

Regional enterprises pivot from model training to production deployment with new cost pressures emerging.

APAC AI Infrastructure Spending Surges as Inference Costs Loom

96% of APAC Enterprises Boost AI Investment by 15%

Dell Technologies research shows 48% of organisations with more than 500 employees across Asia Pacific are already deploying AI PCs, while 95% expect workstations to play critical roles in AI initiatives within two years. The findings come from two IDC InfoBriefs commissioned by Dell and Intel, surveying 720 IT and business decision-makers across APAC organisations. This shift points to a more distributed AI environment that brings intelligence closer to users while supporting increasingly complex workloads.

Singapore leads the region with 54% of organisations already deploying AI PCs, 12% higher than the regional average. Southeast Asia's AI PC adoption is outpacing the regional average by 6%, driven by strong infrastructure in markets like Singapore, favourable conditions and supportive government initiatives. Organisations with over 50% AI PCs in their fleet report saving 2.17 hours per employee per day, representing a 30% productivity increase compared to traditional PCs.

Across APAC, 84% of organisations expect AI PCs to increase employee productivity, while 78% cite security benefits and 77% highlight cost advantages of running AI locally. This momentum translates to investment commitment, with 65% of APAC organisations willing to pay a 10% or more premium for AI PCs, reflecting their role as core enterprise AI infrastructure. IDC's Bryan Ma noted that "very robust models will run on PCs that far exceed today's capabilities" within one to two years.

Indian organisations rank NPU-powered AI performance as their top AI PC criterion at 76%, which is 15% above the APAC average, indicating stronger focus on local processing capabilities. This preference aligns with India's emphasis on data sovereignty and local AI processing, as enterprises seek to maintain control over sensitive workloads while benefiting from AI acceleration. The higher emphasis on NPU performance suggests Indian companies are preparing for more sophisticated on-device AI applications.

Indian Organisations Prioritise NPU Performance in AI PCs

Singapore leads the Asia Pacific region with 54% of organisations already deploying AI PCs, significantly ahead of the 48% regional average. The city-state's strong digital infrastructure, favourable market conditions and supportive government initiatives are driving this early adoption momentum. Local enterprises report the same productivity gains as regional peers, with organisations saving over 2 hours per employee daily when AI PCs comprise more than half their fleet.

Singapore Leads APAC AI PC Deployment at 54%

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Dell research reveals AI PC adoption momentum across Asia Pacific, with Singapore at 54% and enterprises reporting 2.17 hours saved per employee daily

48% APAC enterprises deploy AI PCs, 30% productivity gains

Dell study finds 48% of large organisations already running intelligent endpoints, with Singapore leading at 54%

AI PCs are enabling enterprise use cases from real-time collaboration and report generation to natural language search and content creation, delivering tangible productivity gains across business functions. Four out of five APAC organisations expect AI PCs to drive adoption of agentic AI, with the same proportion agreeing they enhance control and security for these applications.

While AI PCs distribute intelligence across the workforce, workstations continue serving as the performance backbone for more demanding workloads, particularly as organisations shift more AI development on-premise. This dual approach creates what Dell terms an "AI Compute Continuum" that balances edge intelligence with high-performance computing capabilities.

Regional adoption outpaces global averages as organisations shift from experimentation to implementation.

APAC Enterprises Lead Global AI PC Adoption Wave

Half of APAC Enterprises Deploy AI PCs

Enterprises across Asia-Pacific (APAC) are doubling down on artificial intelligence (AI) initiatives, with 96% of organisations planning to increase their AI investments by an average of 15% in 2026, a study has found. About 66% of organisations in the region are now either piloting or systematically adopting AI. In addition, 88% of APAC organisations expect returns from AI projects this year, with an anticipated return on investment (ROI) of $2.85 for every dollar invested.

The report noted that the industry is focusing more on AI inferencing, where an AI model processes data to make predictions and deliver outputs. Sumir Bhatia, president of APAC at Lenovo's infrastructure solutions group, warned CIOs that not planning for inference costs could be detrimental, noting that inference can cost 15 times more than training over the lifetime of a model. "By 2030, 75% of AI compute will be dedicated to inferencing," he said. The report found that half of non-IT departments are now funding AI initiatives, with projects increasingly originating from marketing, finance and business units rather than the CIO's office alone.

A recent IDC study found that 70% of Asia-Pacific organizations expect agentic AI to disrupt their business models within the next 18 months¹. 2026 will be the year AI shifts from adoption to activation. This will be the year AI shifts from adoption to activation, driven by two major changes — the verticalisation of agentic AI ecosystems, and the rise of invisible, embedded intelligence inside core enterprise workflows.

Australia's Woolworths Group will enhance its digital shopping assistant, Olive, using Google Cloud's newly released agentic AI platform, Gemini Enterprise for Customer Experience. Australia's insurers are accelerating the use of agentic workflows to automate claims assessment and triage complex cases. The focus on inference over model training reflects Australian businesses' pragmatic approach to AI deployment, prioritising immediate ROI over experimental projects.

Australian Enterprises Lead APAC AI Inference Shift

Based on CapitaLand Investment (CLI)'s engagement with occupiers across Singapore, China and India, the emerging pattern is not a broad-based contraction, but a redistribution of demand. The technology sector (including Big Data and AI) recorded the highest proportion of occupiers planning to expand, led by China, Singapore, and India. India's tech sector expansion reflects the country's emergence as a key driver of APAC's AI transformation, with enterprises moving beyond cost arbitrage to innovation leadership.

India Drives APAC AI Transformation

Singapore's MAS continues to set the region's benchmark for responsible AI, emphasising fairness, explainability, and auditable decisioning. With sovereign AI ecosystems forming, industry models accelerating, national governance frameworks maturing, and digital adoption rising across Malaysia, the Philippines, Australia, and Singapore, APAC is uniquely positioned to define the global blueprint for agentic transformation. Singapore's regulatory leadership is driving enterprise confidence in AI investments across the region.

Singapore Sets APAC Benchmark for Responsible AI

Regional businesses shift from model building to AI inference as adoption accelerates

As organisations move from building models to running them, AI infrastructure strategies are also changing. The report noted that the industry is focusing more on AI inferencing, where an AI model processes data to make predictions and deliver outputs. Across APAC's diverse economies, one theme is consistent: AI ambition is accelerating faster than enterprise readiness. MIT's "State of AI in Business 2025" found that 95% of organisations struggle to generate meaningful ROI from AI, largely due to weak data foundations and integration gaps.

AI in APAC is evolving beyond general-purpose models into sovereign and sector-specific ecosystems that reflect the data, regulations, and workflows of each industry. With the IDC predicting that 80% of APAC CIOs will rely on edge services for AI performance and compliance by 2027, it's clear that the region is already preparing for a distributed future.

Regional enterprises prioritise production deployment over experimentation as AI maturity accelerates

APAC AI Spending Surges as Focus Shifts to Inference

APAC Enterprises Boost AI Investment 15% in 2026

Enterprises across Asia-Pacific (APAC) are doubling down on artificial intelligence (AI) initiatives, with 96% of organisations planning to increase their AI investments by an average of 15% in 2026, a study has found. The report, which surveyed 920 technology leaders, suggested that the hype phase of AI is giving way to real-world projects. About 66% of organisations in the region are now either piloting or systematically adopting AI. In addition, 88% of APAC organisations expect returns from AI projects this year, with an anticipated return on investment (ROI) of $2.85 for every dollar invested. The investment shift signals a maturation beyond proof-of-concept toward production deployments with measurable business impact.

The report found that half of non-IT departments are now funding AI initiatives, with projects increasingly originating from marketing, finance and business units rather than the CIO's office alone. Scott Tease, vice-president and general manager of enterprise product line at Lenovo, noted that successful AI adoption now relies on partnerships between IT and business teams. As organisations move from building models to running them, AI infrastructure strategies are also changing. The report noted that the industry is focusing more on AI inferencing, where an AI model processes data to make predictions and deliver outputs. Sumir Bhatia, president of APAC at Lenovo's infrastructure solutions group, warned CIOs that not planning for inference costs could be detrimental, noting that inference can cost 15 times more than training over the lifetime of a model. "By 2030, 75% of AI compute will be dedicated to inferencing," he said.

A recent IDC study found that 70% of Asia-Pacific organizations expect agentic AI to disrupt their business models within the next 18 months. Enterprises are beginning to realize that the future of AI lies not in models that attempt to do everything, but in specialized, right-sized, and industry-specific solutions. As the APAC AI Outlook 2026 makes clear, the region is not just adopting AI—it is shaping what AI leadership looks like for the world. A new IBM report reveals how the region's most advanced enterprises are shifting from experimental pilots to AI-powered business model reinvention. This transformation reflects growing confidence in AI's capacity to drive competitive advantage rather than serving as merely a cost-optimization tool.

Australia's Woolworths Group will enhance its digital shopping assistant, Olive, using Google Cloud's newly released agentic AI platform, Gemini Enterprise for Customer Experience. Australia's insurers are accelerating the use of agentic workflows to automate claims assessment and triage complex cases. The nation's focus on practical AI applications in retail and insurance demonstrates mature adoption patterns, with enterprises prioritizing customer-facing implementations that deliver immediate operational benefits.

Australia Leads in AI Infrastructure Investment

Singapore's financial institutions are outpacing global peers in artificial intelligence adoption and deployment, with nearly two-thirds already actively using AI in production environments rather than experimental pilots, according to new research from Finastra. The Financial Services State of the Nation 2026 report, which surveyed senior leaders at financial institutions across 11 global markets, reveals Singapore leading the charge in translating AI ambition into operational reality. In terms of measures, Singapore will launch a new "Champions of AI" program to support firms who want to use AI to transform their business. Support will be tailored to each company, and will include enterprise transformation and workforce training.

Singapore Emerges as APAC's AI Production Hub

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96% of APAC organizations plan AI budget increases as region shifts from experimentation to production

APAC enterprises are moving from centralized data centers to distributed, privacy-first ecosystems, where models learn across smartphones, IoT, and edge devices. On-device inference, persistent memory and privacy-centric design are unlocking broader adoption and lowering barriers to scale. With sovereign AI ecosystems forming, industry models accelerating, national governance frameworks maturing, and digital adoption rising across Malaysia, the Philippines, Australia, and Singapore, APAC is uniquely positioned to define the global blueprint for agentic transformation.

With the IDC predicting that 80% of APAC CIOs will rely on edge services for AI performance and compliance by 2027, it's clear that the region is already preparing for a distributed future. Akamai Technologies unveiled its 2026 Cloud and Security Predictions for Asia Pacific which anticipates that AI-driven cyber threats, tightening sovereignty mandates and the operational demands of distributed AI will significantly influence how organizations in the region build, protect and govern digital infrastructure in the region.

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96% of APAC Enterprises Boost AI Investment by 15%

Half of APAC Enterprises Deploy AI PCs

APAC Enterprises Boost AI Investment 15% in 2026

APAC Enterprises to Boost AI Investments by 15%