Exploding Cognitive/AI Opportunities in APeJ Service Market in 2018

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IDC has just published a Market Analysis Perspective around the Cognitive/AI opportunity in the Asia Pacific ex Japan (APeJ) market across outsourcing and project-oriented services.

With AI/Cognitive being top of mind for many organisations, insights from IDC C-suite barometer survey confirm that ANZ C-level execs are seeing this as a key technology initiative to offer them a competitive advantage. However, some barriers to adoption remain, especially a lack of relevant skill sets and governance, plus regulatory implications in light of GDPR legalisation in Europe.

“Spending on AI/cognitive services is forecast to grow at a 78% five-year Compound Annual Growth Rate (CAGR) in APeJ”, says Annemarie Kikos, Research Director, IDC Australia,” with the highest focus on Enterprise Applications (e.g. ERP) upgrades to include cognitive/AI functionality”.

Robotic Process Automation (RPA) and Conversational AI are key focus topics with 24% of organisations, according to IDC Cognitive/AI Adoption Survey 2017, deploying chatbots or automated conversational interfaces in the next 12-24 months.

“We have looked at the various buyer perspectives,” says Chwee Kan Chu a , VP, IDC Asia Pacific, “with the quality of the data results perceived as top criteria for organisations considering Cognitive/AI solutions purchases”. Chwee added “We are also seeing a preference for new spending rather than leveraging existing investments”.

Key topics covered in this Market Analysis Perspective include:

• Current market sizing and dynamics
• Cognitive/AI Services spend / budget in the APeJ region including ANZ
• Competitive Assessment across outsourcers and the more project-oriented consulting firms
• Buyer Perspective regarding purchasing selection criteria
• Future State - Forecast spend for the services market over the next three years

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company. To learn more about IDC, please click here.