IBM’s latest report, APAC AI Outlook 2025, reveals a significant shift in the adoption and utilization of artificial intelligence (AI) across the Asia-Pacific (APAC) region. As businesses move beyond experimentation, AI is increasingly being integrated into core business strategies, with companies focusing on long-term benefits such as innovation and revenue growth.

In 2025, companies in the region are expected to direct more AI investments towards core business functions like customer experience (21%), followed by back-office process automation (18%), and customer lifecycle management (16%). This shift indicates that AI is no longer just a tool for experiments but a transformative force that offers competitive advantages.

According to Roy Kosasih, President and Director of IBM Indonesia, businesses must adopt smaller, flexible, and open-source AI models to integrate seamlessly with existing technological platforms. This approach will help companies tackle data complexity and high implementation costs, which remain significant barriers to AI adoption.

The IBM report highlights five key strategic trends that will define the future of AI in APAC. One of these trends is the growing focus on human-centric AI, where companies are integrating approaches that ensure AI contributes not only to productivity but also to societal well-being. Another significant trend is the rise of open-source AI models. These smaller, more adaptable models provide greater flexibility and enable organizations to create tailored solutions to meet their specific needs.

Despite AI's transformative potential, organizations in the APAC region still face several challenges. Data complexity (39%), high implementation costs (36%), and limited use cases (35%) are the primary obstacles. To overcome these challenges, companies are encouraged to adopt tools that enhance visibility, governance, and AI integration.

Nearly 60% of organizations in APAC expect the benefits of their AI investments to be realized within two to five years, underscoring the need for long-term strategies that include technology adoption, workforce skill development, and comprehensive risk management.

The APAC AI Outlook 2025 serves as a crucial guide for companies looking to accelerate their AI journeys. By prioritizing human-centric innovation, open-source models, and clear ROI strategies, organizations can unlock the full potential of AI, paving the way for sustained growth and success.

IDN TIMES