Asia Pacific (ASPAC) is spending more than other regions on artificial intelligence, deploying it the fastest, and executives here expect machines to match human reasoning sooner than anywhere else.
KPMG's first Global AI Pulse survey1 reveals that the next step in the evolution of AI in ASPAC will be that of companies closing the gap between ambition and capability.
Firms in ASPAC expect to invest, on average, US$245 million in AI over the next 12 months into things like training, technology, compliance and talent — well above the global average of US$186 million, and ahead of other regions. Three-quarters of them say even an economic recession will not deter investment in AI. In India, that share rises to 86 percent.
Korea stands out in the region, with an average spend on AI of US$358 million expected in the next 12 months. In fact, more than a third (34 percent) of Korean firms plans to invest more than US$500 million on AI in the next year.
The numbers indicate that companies in ASPAC are committing seriously to AI, and expect to continue investing in the technology irrespective of the macroeconomic environment.
The enthusiasm is not unfounded. Sixty-nine percent of surveyed firms report tangible benefits from adoption, in the form of productivity gains, cost savings, revenue growth or sharper decision-making. That is slightly above the global average of 64 percent. Indian companies, more than any other, say they have felt the difference (79 percent).
These numbers also suggest that almost one in three companies is not seeing AI deliver meaningful business value yet, and that gains have been uneven.
But the survey results provide enough indication that this gap is closing in ASPAC. The shift towards AI agents is accelerating globally, including in ASPAC, and reflects growing confidence in what AI can do. One in three (32 percent of) ASPAC firms are already scaling agents across multiple functions, led by Korea (41 percent).
Agents are being deployed in technology and IT (66 percent), operations (48 percent) and marketing and sales (44 percent), but the real value lies in cross functional coordination. Almost half the respondents in ASPAC say AI agents are automating workflows that span multiple functions. More interestingly, in the next two to three years, four in ten ASPAC firms expects AI agents to take the lead on managing specific projects, and not just assist with them. This is far more than the global share of 30 percent.
These numbers demonstrate confidence among ASPAC companies about the utility and value of AI. They are now organising around these results, building the right teams for an AI-prevalent world.
Companies are mindful of the advantages of having the right workforce. Globally, firms that are confident in their talent pipeline are four times more likely to report meaningful business value from AI—77 percent versus 20 percent.
In ASPAC, 62 percent of firms are upskilling or reskilling their current workforce; 56 percent are hiring for new AI-specific roles — such as AI architects and prompt engineers, and the like. At the same time, 56 percent are also hiring for new AI-specific roles. The skills most in demand among companies are not purely technical, however, and include skills such as critical thinking, adaptability and creative reasoning.
A key area of focus going forward is human-AI integration. India leads on this front in the region, with four in five firms making strong progress toward a fully integrated AI-human workforce, against a global average of 60 percent.
KPMG’s AI Pulse Survey shows that contrary to a commonly espoused view that companies are struggling to hire for the right roles in an AI environment, most companies (70 percent) in ASPAC are confident that their current talent pipeline can meet the needs of an AI-enabled workforce.
Issues relating to data security, privacy and risk concerns remain prevalent, with 29 percent of ASPAC companies saying that concerns in these areas could prompt them to pause implementation in the next six months, and an additional 45 percent saying it could result in them slowing down implementation.
Almost half (47 percent) of companies in ASPAC say risk considerations such as data privacy and cybersecurity pose the biggest challenge to their organizations’ ability to demonstrate ROI related to AI. This is followed by a difficulty in quantifying indirect or long-term benefits (42 percent) and skills gaps (37 percent).
The latter two challenges reflect the realities of a technology that is scaling faster than the operational frameworks around it, a gap that will narrow as the industry matures.
Board-level awareness is another indicator of the region's preparedness. Today, 82 percent of boards in ASPAC cover AI topics, more than in other regions. More tellingly, almost four in five (79%) have at least one director with genuine AI expertise. As companies take on more complex, cross-functional AI systems, this kind of governance and oversight is a good sign for companies.
These developments are not surprising. Companies — and consumers — in the region have long been early adopters of new technologies, absorbing them into everyday life and business. AI is no different. The KPMG survey results illustrate that the region’s companies are, in many ways, better prepared than their peers elsewhere for a future in which AI is integral to business growth and resilience.
ASPAC companies are looking to spend more and planning further ahead than most. The key building blocks, in the form of governance, talent and deployment, are falling into place. Companies here will soon have the capabilities to match their ambition.
[1] The survey draws on insights from more than 2,100 senior executives from 20 countries, including 559 from across six key ASPAC markets – Australia, China (including Hong Kong SAR and Taiwan), India, Japan, South Korea and Singapore.
