44% of Asia Pacific Digital Native Businesses are Exploring Potential Use of Generative AI

• 26% of Digital Native Businesses in Asia/Pacific* Have Already Invested in Generative AI, Says IDC

• 44% of Asia/Pacific* Digital Native Businesses (DNBs) are Exploring Potential Use of Generative AI (GenAI)

According the recent International Data Corporation (IDC) report, Asia/Pacific (Including Japan) Digital-Native Businesses' Attitude Toward Generative AI, 26% of Asia/Pacific including Japan (APJ) DNBs have already invested in GenAI in 2023, while 44% are doing some initial exploration of its potential use cases . These DNBs expect to see the largest impact of GenAI technology in the areas of product development/design, research and development, customer engagement, sales, and marketing.

Code generation is the top use case of generative AI for APJ DNBs which will have the largest impact on software development, web development, database management, API integration, and low-code/no-code platforms. The second use case is knowledge management applications which can be used for content creation and information retrieval. The other key use cases are across marketing automation, conversational applications such as chatbots for more natural and human-like interactions, and design applications where GenAI can assist in generating creative idea and automating repetitive design tasks.

"Future DNBs in APJ will be intelligently generative, thanks to GenAI. However, given that it's still in the early stages and companies are investigating its possible use cases, it is crucial to navigate the challenges of privacy, security, and responsible implementation of this technology. DNBs will need to collaborate with regulatory bodies to establish guidelines to govern the use of GenAI to foster trust and transparency in the industry," says Supriya Deka, Sr. Market Analyst, IDC Asia/Pacific SMB and Midmarket Program.

The APJ region has seen a rise in GenAI startups, especially in China, Singapore, and India. More than US$700 million in capital has been invested to date and more is expected. Companies in business/productivity software, and multimedia and design software have the most deal count and capital invested. These industries have the highest number of start-ups driving GenAI innovation.

The IDC report,  Asia/Pacific (Including Japan) Digital-Native Businesses' Attitude Toward Generative AI (IDC# AP47758522), provides insights on DNBs adoption and attitude towards Gen AI technology compared to Non-DNBs or traditional businesses in terms of data management, data ethics toward AI/ML, and data sovereignty. Additionally, it gives an overview of GenAI startups in the APJ, with examples of B2B and B2C businesses using GenAI technology in their offerings or offering GenAI solutions.