92% of mid-sized companies in Asia Pacific and Japan say adopting generative AI is a top business priority
Singapore, September 18, 2024 – Successful mid-sized companies in Asia Pacific and Japan (APJ) are more likely to prioritize generative artificial intelligence (Gen AI) than those experiencing lower revenue growth – and they are adopting new AI innovations across all areas of their business.
A recent study conducted by SAP among 12,003 companies revealed that APJ medium-sized companiesdefined as companies with between 250 and 1,500 employees, with strong revenue growth(1) are more likely to place a moderate or high priority on adopting next-generation AI (94%) than those with lower revenue growth (86%).
“Enterprise AI is the biggest technology opportunity of the 21st century for businesses in the Asia-Pacific region and Japan,” said Utkarsh MaheshwariPartner Manager & Midmarket Lead, SAP Asia Pacific & Japan.
“But the benefits of enterprise AI aren’t limited to large enterprises. Organizations of all sizes can benefit from the opportunities that come with relevant, reliable, and responsible AI. It’s not just about generating images or making videos. It’s about automating everyday problems, delivering valuable insights quickly, and reliably solving simple business problems.”
AI adoption is a major organizational priority in APJ
The study, which surveyed 3,400 respondents across five APJ markets, found that the use of artificial intelligence is a top organizational priority for mid-sized businesses.
Adopting standard business applications of AI, such as machine learning for data analysis and predictive analytics, as well as adopting next-generation AI are top organizational priorities across the APJ region (92% moderate and high priority). Other key priorities include cybersecurity threats and reducing gaps in supply chains (92% across the board).
Improving or expanding supplier and partner networks (43%) is the top priority for ensuring growth. However, artificial intelligence is seen as a priority for transforming organizational processes in all areas of the business.
More than half of APJ mid-sized companies surveyed are placing a high priority on AI to transform their data security and privacy (52%) and to drive accurate decision-making (50%). Other key areas where AI can transform include creating new business models (48%), improving customer experience (48%), improving training and skills (48%), and optimizing supply chains (47%).
AI is now creating value for APJ companies
But AI is not just planned to bring future benefits. It is being implemented today.
AI is already used to a moderate or high degree in APJ mid-sized companies to create marketing and sales content, gather market intelligence, develop and test applications, and for interactions with customers or suppliers (83% in all cases).
“AI is not new. In fact, we have been using it for decades,” Maheshwari continued. “More than 27,000 customers are already using SAP Business AI today, including thousands in Asia Pacific and Japan. We have released more than 70 generative AI use cases in the past year, already integrated into our platforms and solutions, and we expect to have more than 100 use cases available by the end of 2024, meaning that 80% of the most commonly used scenarios will be enabled by AI. Now is the time to explore the benefits of business AI.”
APJ Midsize Companies See Data as a Major Risk to AI Growth and Adoption
However, challenges remain in stimulating the growth of APJ’s mid-sized businesses.
Respondents highlighted lack of data quality (37%) and lack of integration between systems (33%) as the main internal challenges to growth, along with issues related to supply chains (40%) and silos within their business (33%).
Data is also cited as an organizational risk when it comes to AI. Mid-sized companies in the APJ region said the biggest risks to their business related to AI were acting on incorrect information (36%), finding and retaining talent (34%), lack of transparency in results (34%), and not having sufficient size and quality of data (31%).
“The better your data quality and the more scalable it is, the better your AI outcomes will be,” concludes Maheshwari. “That’s why it’s critical to work with a technology partner like SAP, because it’s already integrated with the applications that power the most critical business processes. Only then will APJ companies of all sizes be able to realize the promise of business AI.”
About this research
SAP Insights collected data from 12,003 respondents across 20 countries and 28 industries. Respondents came from organizations with 250 to 1,500 employees, in director or senior management positions. The study was conducted in March-April 2024 via an online survey.
(1) Strong revenue growth is defined as companies in the top quartile of respondents describing revenue growth in 2024.
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