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, according to Lenovo's CIO Playbook study. 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 surge spans generative AI, agentic AI, cloud services, on-premises infrastructure, and AI security tools.

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. This represents a fundamental shift from 2025's focus on proving AI's value to 2026's emphasis on delivering measurable outcomes. 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. Research from Thoughtworks reveals that while 77% of global businesses are focused on generating revenue from AI initiatives, Asian markets are leading the charge in agentic AI adoption, job creation and executive confidence.

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. Fan Ho, executive director and general manager of Lenovo's solutions and services group in APAC, noted that generally, the uneven maturity of infrastructure and lack of quality data are some of the barriers to scaling AI initiatives. Governance is another hurdle in scaling AI deployments.

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 country's enterprises are among the most aggressive in adopting AI across retail and financial services, with insurance companies particularly focused on automated claims processing and risk assessment.

Australian Enterprises Lead APAC AI Spending

In India, 59% of organisations are already piloting or systematically adopting AI, while 19% are in early stages and 23% are considering deployment. Microsoft has expanded its AI footprint in India, teaming up with four of the country's largest IT services companies to deploy agentic AI capabilities across enterprises. The country's large IT services sector is positioning itself as a key enabler of enterprise AI adoption across APAC, with significant investment in agentic AI capabilities expected throughout 2026.

Indian Companies Show Strongest AI Growth

Singapore's MAS continues to set the region's benchmark for responsible AI, emphasising fairness, explainability, and auditable decisioning. The technology sector (including Big Data and AI) recorded the highest proportion of occupiers planning to expand, led by China, Singapore, and India. Singapore's strict governance framework is becoming the model for other APAC markets as they scale AI deployments while maintaining regulatory compliance.

Singapore Sets Regional AI Governance Benchmark

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96% of APAC enterprises plan 15% AI budget increases, expecting $2.85 return per dollar invested as focus shifts from pilots to production.

$2.85 return drives 15% AI spending surge across APAC in 2026

APAC enterprises boost AI budgets 15% with 96% planning increased investment in 2026.

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. 2025 was the year AI in Asia-Pacific shifted from experimentation to expectation. 2026 will be the year AI shifts from adoption to activation.

As AI workloads scale, infrastructure strategy is emerging as a defining decision for chief information officers. About 86% of Apac organisations now incorporate on-premises or edge environments as part of hybrid AI architectures, effectively making hybrid AI the default model for enterprise deployments. The shift reflects growing maturity in how enterprises approach AI deployment, moving beyond proof-of-concept phases to systematic integration across business functions.

Region's companies expect highest returns as they shift from experimentation to production.

APAC Leads Global AI Enterprise Spending

$2.85 Return Expected on Every AI Dollar Spent

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%

India reports the highest concentration of 'expert' agentic AI users of any country surveyed, with 50% of Indian respondents seeing returns from agents assisting with code generation and workflow automation. Australia and Japan remain at intermediate stages, with Japan facing the highest skills barriers at 44% citing insufficient internal capabilities. Asia-Pacific enterprises are planning 15% average AI investment increases in 2026, with 96% of organisations boosting their spending.

Only 36% of organisations globally have centralised agentic AI governance, with most running agents in fragmented environments without overarching frameworks. Lenovo warns 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. The question for multinationals is whether their AI governance frameworks can handle regional differences in deployment pace and caution.

The report describes two parallel adoption stories: India's trajectory suggests a market that has moved from experimentation to execution and is now consolidating returns. APAC organisations expect $2.85 return on investment for every dollar invested in AI, with 88% anticipating returns this year. 2026 marks the year AI shifts from adoption to activation across the region.

Australia remains at intermediate agentic AI maturity, still moving initiatives from pilot toward production stages. Microsoft and the Australian Council of Trade Unions convened a Workers' Summit to address practical, worker-centred AI adoption approaches, establishing frameworks for elevating worker voice and strengthening skills. The collaboration signals Australia's focus on inclusive AI transformation despite lagging deployment rates.

Australia Trails in Agentic AI Despite High Investment

India leads all surveyed countries with the highest concentration of expert agentic AI users and 50% of respondents seeing IT development and productivity returns from AI agents. India is the region's fastest-growing national AI market, propelled by projects such as BharatGPT and Sarvam's language models. The success reflects India's ability to move from experimentation to execution while consolidating measurable business returns from AI investments.

India Achieves AI Leadership Through Expert-Level Deployment

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Regional deployment gap widens as India reaches expert level while Japan and Australia remain intermediate.

A global survey of 1,879 IT leaders finds 97% of organisations globally explore agentic strategies, but actual progress depends heavily on geographic location. Half of non-IT departments now fund AI initiatives, with projects increasingly originating from marketing, finance and business units rather than CIO offices alone. The shift reflects AI's maturation from technical experiment to business-critical capability.

Research from Rubrik Zero Labs finds organisations are operationalising autonomous systems without controls needed to govern them effectively, creating disconnect between adoption pace and risk management ability. Only 30% of APAC respondents report full visibility into AI agents operating within their environments.

Regional deployment disparities challenge multinational AI strategies as infrastructure and skills vary widely.

APAC's Uneven AI Transition Exposes Governance Gaps

India Leads Asia's Agentic AI Race While Others Lag

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, according to a comprehensive Lenovo study. About 66% of organisations in the region are now either piloting or systematically adopting AI, with 88% of APAC organisations expecting returns from AI projects this year, with an anticipated return on investment (ROI) of $2.85 for every dollar invested. The report highlights a fundamental shift as organizations move from centralized IT-led initiatives to business-driven deployment strategies.

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. This transformation reflects growing confidence in AI's practical applications beyond experimental pilots. Singapore organizations report the highest adoption rate, with 96% reporting some level of AI use, though only 23% rated their organisation as industry-leading in achieving ROI from AI. The disconnect between adoption and returns points to implementation challenges that many enterprises are still working to resolve.

Infrastructure costs present a significant challenge, with inference potentially costing 15 times more than training over a model's lifetime, and by 2030, 75% of AI compute expected to be dedicated to inferencing. In Singapore, 64% of executives agreed that if leadership fully understood how fragile their data infrastructure is, it would keep them up at night, with 52% of respondents saying data complexity makes it more difficult to detect security breaches. Despite these challenges, the regional commitment to AI scaling remains strong as organizations recognize its potential to fundamentally transform business operations.

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. Australian organizations are particularly focused on solving the inference cost challenge, with many adopting hybrid cloud strategies to balance performance and economics. The country's mature regulatory environment is driving careful governance approaches that other APAC markets are watching closely.

Australian Enterprises Lead Infrastructure Modernization Push

India leads with 52 percent adoption rates, though it reported a -2.1 percent year-over-year decline in AI spending as a percentage of overall technology budgets. Despite budget constraints, Indian enterprises are demonstrating strong returns on targeted AI investments, particularly in financial services where specialized models are showing measurable business impact. The country's focus on cost-effective, locally relevant AI solutions is creating replicable models for other emerging markets.

India Drives Cross-Sector AI Innovation Momentum

Singapore leads regional AI adoption with 56% of respondents reporting progress toward scaled adoption, hosting more than 60 AI Centres of Excellence including those of Alibaba Cloud, IBM, NVIDIA, and Oracle. With 56 percent of Singapore companies already scaling AI—higher than the regional average (38 percent)—the city-state offers ample opportunities for peer learning. However, the gap between adoption and ROI achievement highlights the need for more strategic integration approaches rather than ad-hoc deployment.

Singapore Maintains AI Adoption Leadership Position

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96% of Asia-Pacific organizations plan increased AI investments as focus shifts from experimentation to practical deployment.

By 2026, 95% of global executives expect generative AI initiatives to be at least partially self-funded, reflecting the widening revenue pool AI is creating across industries, with AI becoming a self-sustaining investment that expands revenue pools while compounding returns. The region's emphasis on cross-industry knowledge transfer is accelerating adoption patterns, with breakthrough applications in one sector inspiring rapid implementation in others.

This cross-industry transfer is quickly becoming APAC's competitive advantage, with transferable value across industries accelerating AI maturity across the region, helping enterprises leapfrog traditional development cycles. Organizations are increasingly treating AI not just as a cost optimization tool, but as a fundamental business model transformation enabler that creates new revenue streams and competitive advantages.

APAC's coordinated approach to AI scaling demonstrates growing enterprise confidence in distributed deployment strategies.

Regional AI Investment Surge Reflects Infrastructure Maturity

APAC Enterprises Boost AI Spending 15% Despite ROI Challenges

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 are increasing their AI investments by an average of 15% in 2026, with 88% expecting returns of $2.85 for every dollar invested. However, Lenovo's CIO Playbook 2026 reveals a critical deployment gap: only around half of all AI pilots ever reach production, despite widespread investment intentions. By 2030, 75% of AI compute will be dedicated to inferencing, making deployment costs increasingly critical.

The primary obstacle is financial: inference costs can run up to 15 times training costs over a model's operational lifecycle, a problem most enterprise AI strategies did not anticipate. Only 10% of organisations describe themselves as ready for scaled agentic AI deployment, while 60% are exploring it but 41% say meaningful results will take at least 12 months, with just one in three having comprehensive AI governance frameworks. Half of non-IT departments are now funding AI initiatives independently, creating additional coordination challenges.

Organizations that successfully close the pilot-to-production gap share common characteristics: they build reusable use-case frameworks rather than one-off deployments, treat governance as infrastructure rather than compliance, and make cost predictability a design requirement from day one. In APAC, India demonstrates the highest levels of advanced agentic AI capability, while Australia and Japan are moving from pilot to production phases. This deployment reality requires enterprise leaders to plan for inference costs that could be 15 times more expensive than training.

Australia reflects a growing base of organizations at an intermediate stage of AI maturity, actively moving initiatives from pilot to production phases. The country is experiencing rapid growth, with business customer adoption exceeding 140% year-over-year, indicating strong momentum despite deployment challenges. AWS has trained over 400,000 Australians since 2017 and will continue supporting generative AI programs as part of AU$20 billion infrastructure investment to accelerate AI adoption nationwide.

Australia's AI Maturity Hits Production Scaling Challenges

India stands out with some of the highest levels of advanced and expert agentic AI capability in APAC, leading regional AI maturity despite widespread pilot-to-production challenges. OutSystems surveyed 527 APAC respondents including India, examining agentic AI adoption levels, use cases, and governance practices as organizations move from experimentation to execution. India is among the countries where the technology sector, including AI and Big Data, recorded the highest proportion of occupiers planning office space expansion to support AI workforce growth.

India Demonstrates Highest APAC AI Capability Despite Deployment Hurdles

Singapore's AWS AI Spring programme aims to train 5,000 individuals annually on AI skills from 2024-2026, with S$12 billion in cloud infrastructure investment contributing S$23.7 billion to GDP. Government data shows Singapore is working to triple its pool of AI practitioners from 5,000 to 15,000, highlighting the competitive talent battle in the region. Four major public agencies are leveraging AWS expertise to adopt AI for clinical outcomes and operational efficiency, with cloud platforms acting as force multipliers for complex national challenges.

Singapore Leads AI Infrastructure Investment Despite Regional Deployment Gap

Half of AI pilots never reach production in region despite 96% planning budget increases.

APAC enterprises are doubling down with 96% planning AI investment increases averaging 15%, with 66% now piloting or systematically adopting AI and expecting $2.85 return per dollar invested. However, Lenovo's regional analysis reveals a disconnect: while boardroom consensus has shifted from whether to invest to how much, something consistently goes wrong between conception and deployment.

The acceleration brings new risks, with 94% of organizations expressing concern that AI sprawl is increasing complexity, technical debt, and security vulnerabilities across their operations. As one Lenovo executive noted, last year the conversation was about proving ROI; this year, the question has evolved to why organizations that have already proven value are still struggling to scale effectively.

Regional enterprises face operational hurdles despite strong financial commitment.

APAC AI Investment Surges but Deployment Lags Behind Ambitions

APAC Enterprise AI Stalls at Deployment Stage Despite Investment Surge

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. About 66% of organisations in the region are now either piloting or systematically adopting AI, marking a decisive shift from experimentation to execution. 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.

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.

The source of this investment is changing. 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. This signals AI's evolution from IT experiment to core business function, with Asian markets leading the global shift from cost-cutting to revenue generation. India has emerged as the most aggressive adopter of growth-focused AI strategies.

Germany is more cautious at 28.8%, and Australia sits at 20%. In the wider Asia-Pacific region, Australia appears to be falling behind its regional neighbours, reporting the lowest focus on agentic AI, at just 23.4%. This presents both a challenge and opportunity for Australian enterprises to accelerate their AI transformation strategies to remain competitive with Asian counterparts.

Australia Lags Regional AI Leaders in Agentic Focus

India has emerged as the most aggressive adopter of growth-focused AI strategies. Along with Brazil, India is the most optimistic market surveyed, with 49.2% of executives expecting more than 15% revenue uplift from AI in the next five years. While 35% of global leaders view agentic AI as a top priority, India leads the world, with 48.6% of organisations citing it as a primary future focus. Contrary to fears about AI displacing workers, the report suggested a positive impact on employment in Asian tech hubs. India leads the world in AI-driven job creation, with 57.1% of organisations in the subcontinent reporting a net increase in roles created through human-AI collaboration.

India Leads World in AI Revenue Optimism and Job Creation

Singapore follows as the second most aggressive adopter at 40.8%, placing both nations ahead of the UK (40%) and the US (28%). Singapore — 60.9% (more than 3pp behind UAE). Strong government investment ($743M through 2027), early digital infrastructure, and mandatory AI literacy programs drive adoption. The city-state's strategic investments in AI governance frameworks and enterprise readiness are positioning it as a regional AI hub.

Singapore Emerges as Second-Largest Agentic AI Adopter

96% of regional organizations plan increased investments as focus shifts from training to inference deployment.

Research from Thoughtworks reveals that while 77% of global businesses are focused on generating revenue from AI initiatives, Asian markets are leading the charge in agentic AI adoption, job creation and executive confidence. According to research from technology consultancy Thoughtworks, the "era of efficiency" is effectively over. The study, which surveyed 3,500 IT decision-makers and C-suite leaders globally, found that 77% of business leaders have evolved their AI strategies from identifying cost savings to driving growth and innovation.

However, the speed of this transition varies by region, with Asian nations having the highest levels of optimism and adoption around AI. While 35% of global leaders view agentic AI as a top priority, India leads the world, with 48.6% of organisations citing it as a primary future focus. Singapore follows as the second most aggressive adopter at 40.8%, placing both nations ahead of the UK (40%) and the US (28%).

Asian enterprises shift from efficiency focus to growth-driven AI strategies, outpacing Western counterparts.

APAC Leads Global AI Revenue Generation Push

APAC Enterprises Double Down on AI with 15% Spending Boost

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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