Qlik® has released a new research paper by International Data Corporation (IDC) revealing that 80% of Asia Pacific organizations are rethinking data management as poor data quality, bias, and complex engineering cause one in five AI projects to fail.
Despite these challenges, AI-related investments in the region are projected to outpace overall digital technology spending by 1.7 times, with generative artificial intelligence (GenAI) expected to have an estimated regional economic impact of US$1.6 trillion by 2027.
“In 2025, AI will focus on agentic AI, which is redefining business operations with dynamic, autonomous outcomes. But success depends on high-quality, accessible, and well-governed data,” said Maurizio Garavello, Senior Vice President, Asia Pacific & Japan, Qlik.
Strong Data foundation for stronger GenAI implementation
The newly released IDC InfoBrief, commissioned by Qlik and co-sponsored by Amazon Web Services (AWS), titled “The AI Pivot: Accelerating GenAI Adoption and Unlocking Data-Driven Business Value” also found that inconsistent, outdated, and biased data continue to erode trust and hinder decision-making. About 35% of organizations surveyed said these challenges limit their ability to successfully scale GenAI initiatives.
To overcome these challenges, more than half (56%) of organizations across Asia Pacific are turning to low-code and no-code AI tools to simplify GenAI implementation. Notably, 74% see these tools as critical for AI expansion, allowing developers to focus on higher value tasks. This shift underscores the growing demand for accessible AI solutions to drive innovation and efficiency.
“An AI-driven future starts with two key priorities: building a strong data foundation and identifying the right business use cases for AI,” said Dr. Chris Marshall, Vice President, Data, Analytics, AI, Sustainability, and Industry Research, IDC. “From business intelligence to fraud prevention, AI offers vast opportunities – but to unlock its full potential, organizations must prioritize data integrity, governance, and innovation.”
Accelerating cloud adoption to power GenAI growth
Cloud migration remains a top priority for businesses across Asia Pacific, with 73% identifying it as essential for strengthening their GenAI capabilities. AI investment in the region is also surging, with ASEAN’s spending projected to grow 28% annually. As this momentum builds, a strong data foundation is crucial to GenAI success.
Several ASEAN countries are making significant progress in developing large language models (LLMs) tailored to local languages and cultures, using local data and cloud technology. In Singapore, AI Singapore has introduced SEA-LION (Southeast Asian Languages In One Network), a comprehensive LLM for the region. Meanwhile, Malaysian AI startup Mesolitica has developed a Bahasa Melayu LLM called MaLLaM (Malaysian Large Language Model), also hosted on the cloud.
How to Build a Strong Data Foundation for GenAI
To improve the success rates of data initiatives, IDC recommends that Asia Pacific organizations should prioritize key areas:
- Establish enterprise-wide data strategies and foster data-driven decision-making cultures.
- Invest in scalable data platforms and automate data processes.
- Strengthen governance and lifecycle management practices to ensure privacy and compliance.
- Enhance infrastructure and skill development while forming strategic partnerships to unlock analytics’ full potential.
