Generative AI software spending in Asia and Oceania is projected to surpass $18 billion by 2028, driven by businesses increasingly adopting localized solutions, according to research from Omdia. The 2024 report on Generative AI in Asia and Oceania analyzed trends among technology vendors that are developing and deploying large language models. This growth trajectory represents a compound annual growth rate (CAGR) of 53%, indicating robust demand for generative AI solutions tailored to regional needs.
The report emphasizes that technology firms in the region are capitalizing on this demand by creating their own local systems. It highlights the shortcomings of generative AI software that primarily caters to Western languages and cultural values, suggesting that these solutions might not effectively address the unique languages, customs, and use cases prevalent in Asia and Oceania. Consequently, companies are increasingly focused on developing proprietary solutions that better serve their local audiences.
Prominent telecommunications companies, such as China Mobile and KT in South Korea, are leading the way by adopting and refining their own generative AI solutions and developing large language models suited to their markets. Additionally, vendors from India and Singapore, including Tech Mahindra and AI Singapore, are also at the forefront of creating models designed specifically for their users.
“Asia and Oceania host some of the most ambitious vendors in the AI sector, working on comprehensive solutions,” stated Lian Jye Su, chief analyst of applied intelligence at Omdia. Corporations like Alibaba, Baidu, Huawei, Tencent, SK Telecom, and KT are investing in the development of proprietary cloud AI chips, infrastructure, frameworks, and services. Their goal is to create distinctive generative AI products and services that resonate with regional contexts.
The consumer sector emerges as the largest industry utilizing generative AI software in Asia and Oceania. Omdia’s findings indicate that many companies engaged in generative AI development and deployment are focused on consumer-driven solutions. This sector is anticipated to be the dominant revenue contributor, followed by growth in media and entertainment—particularly in support of streaming services and digital advertising—as well as business services, where automation solutions such as virtual assistants and automated report generation can significantly enhance operational efficiency.
Omdia identified the top ten use cases for generative AI in the region, with a notable emphasis on applications involving speech and vision. Voice recognition, virtual assistants, and voice assistants ranked among the most popular use cases, reflecting a strong consumer interest in these technologies.
The report advocates for collaboration between vendors and end users in Asia and Oceania to uncover new revenue opportunities within the generative AI landscape.
“Ultimately, we anticipate that the focus on localizing generative AI and ensuring data sovereignty will pave the way toward AI sovereignty,” Su emphasized. “There is a growing recognition in Asia and Oceania of the transformative potential of generative AI, leading to a call for development that aligns with each country’s unique identity, characteristics, and requirements.” Governments are encouraged to collaborate closely with generative AI technology providers and end users to cultivate a thriving local AI infrastructure and ecosystem that supports this evolution.
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