Mid-market organizations in the Asia-Pacific region are exhibiting a strong interest in artificial intelligence (AI), according to a recent report by Avanade. Most of these organizations anticipate achieving returns of up to four times their investment within the next 12 months. However, they face several challenges that hinder sustainable progress.
Avanade, in collaboration with research firms McGuire Research Services and Vanson Bourne, conducted a study involving 4,100 IT and senior business decision-makers across various countries including Australia, Japan, Germany, and the United States.
The top priority for these firms in 2025 is the effective utilization of AI tools, particularly Microsoft Copilot, to stimulate revenue growth and foster a collaborative workplace culture. Impressively, 87% of respondents plan to increase their budgets for generative AI projects by as much as 50%.
Despite the enthusiasm, 48% of these organizations remain stuck at the business case stage, while 44% are in the proof of concept phase. There is an impending sense of urgency, as 85% of leaders worry about losing their competitive edge if they do not adopt AI rapidly.
Furthermore, a staggering 95% of leaders are prioritizing modernization plans for their legacy systems. A notable 6% pointed out that poor data quality and governance are significant barriers to AI implementation.
To mitigate these challenges, Avanade has introduced seven new AI services aimed at enhancing mid-market organizations’ capabilities. These services include initiatives to accelerate revenue generation, modernize applications, and provide unified analytics platforms.
Bhavya Kapoor, Avanade’s president for Asia Pacific, emphasized the transformative potential of AI in the region, stating, “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.”
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