Mid-market organisations in the Asia-Pacific region are embracing artificial intelligence (AI) with confidence, with most anticipating up to fourfold returns within 12 months, according to a report from Avanade.
However, gaps in workforce readiness, data governance, and technology infrastructure are key obstacles for mid-market organisations to achieve sustainable returns.
For this report, Avanade commissioned independent market research firms McGuire Research Services and Vanson Bourne to undertake research to understand the mid-market’s experience in developing and implementing AI solutions and emerging technologies.
Across the two separate research projects, a total of 4,100 IT decision makers and senior business decision makers outside of IT were interviewed in August and September 2024. They were based across Australia, Brazil, France, Germany, Italy, Japan, Netherlands, Spain, the United Kingdom, and the United States.
Findings show that the Top goal for 2025 is the use of AI tools, like Microsoft Copilot, to drive new revenue while building a collaborative workplace culture.
Among respondents, 87% expect to increase their budgets for generative AI projects by up to 50%.
Also, 85% expressed concern over losing competitive advantage without rapid AI adoption, hence fast-tracking implementation is a top priority.
Further, nearly half are stuck at the business case (48%) or proof of concept (44%) stage.
The report also underscores pressing concerns around technology infrastructure and data security, with 95% of leaders fast-tracking plans to modernise legacy systems and 6% stating that poor data quality and governance inhibits AI progress.
With 94% citing sensitive data protection as critical, companies are stepping up investments in data governance – with 44% planning to implement new data platforms and 41% setting governance standards.
To support the scaling of AI, budgets will focus on data and analytics platforms (27%), automation (17%), as well as security and cyber resilience (15%).
“Coupled with rapid advancement in artificial intelligence (AI) and the region’s appetite for innovation, mid-market companies in Asia Pacific are at a pivotal juncture of their growth and transformation,” said Bhavya Kapoor, Avanade’s president for Asia Pacific.
“With the right partnership and strategic guidance, mid-market companies can leverage technologies like AI to unleash their potential and emerge as the next generation of market leaders and industry titans,” Kapoor added.
To help mid-market organisations in APAC overcome these business challenges, Avanade has recently introduced seven new AI services that combine Avanade’s industry and technical expertise with Microsoft’s secure, AI-powered platforms and tools.
The new services are Accelerate Revenue Generation; AI-Powered Migration and Modernisation; Build and Modernise AI Apps; Drive Business Transformation with Copilot; Modernize ERP; Unify your Intelligent Data and Analytics Platform; Unify Threat Protection.
