Asia leads global AI adoption yet hindered by data, security issues

Image from Getty Images thru Hitachi Vantara

Asian enterprises are ahead of the curve when it comes to embedding AI into core operations, according to new research from Hitachi Vantara.

The data storage, infrastructure, and hybrid cloud management subsidiary of Hitachi found that while 37% of organisations worldwide now consider AI critical to their function, the figure is 42% in Asia. 

Certain markets stand out even more, with China and Singapore topping the list globally with 53% and 57% respectively indicating that AI is now critical to their organisation’s operations, underscoring the region’s decisive shift from experimentation to full-scale AI adoption.

Conducted independently by Reputation Leaders, the study is based on a survey of 1,200 global respondents—including 325 in India, China, Singapore, Indonesia, and Malaysia.

The companies surveyed had a wide range of annual global revenues:

  • under US$500 million: 8%–35% (varied by country)
  • US$500 million – US$1 billion: 26%–42%
  • US$1 billion – US$5 billion: 15%–30%
  • US$5 billion – US$10 billion: 11%–26%
  • over US$10 billion: 0%–24%

The survey targeted senior IT and executive roles, including:

  • CIOs, CTOs, IT managers, heads of IT
  • EVP/SVP/VP of IT or Technology
  • Other C-Suite executives.

Findings show that while Asia is moving beyond initial AI pilots, organisations in the region are still struggling with fundamental data challenges.

Despite ambitions to integrate AI more deeply, critical metrics remain underwhelming: on average, Asian enterprises estimate that their AI models produce accurate outputs just 32% of the time, and data is available where and when it’s needed only 34% of the time. 

Even more concerning is the quality of data itself, with a mere 30% deemed structured, indicating that most information feeding into AI systems is messy and unrefined.

Limited data quality and availability likely inhibit AI initiatives from achieving the breakthroughs leaders envision. While the region boasts many organisations declaring AI as critical, these lofty aspirations risk being undermined by the poor state of underlying data conditions.

Compounding the issue is the looming explosion of data volumes. With respondents in Asia expecting data storage demands to rise 123% in the next two years, enterprises will find it even harder to ensure that AI models receive clean, timely inputs. 

Data security concerns add another layer of complexity; 44% of Asian respondents cite it as a top worry, surpassing the global average of 38%. This pressure resonates strongly in India and Indonesia, where 54% and 50% highlight data security among their main concerns when implementing AI, further complicating the pursuit of trustworthy AI outcomes.

Meanwhile, companies in Asia are shoring up their capabilities: 71% of Asian enterprises are hiring staff with AI-relevant skills (vs 64% globally) and 68% are consulting external experts (vs 61% globally), indicating a concerted effort to close expertise gaps and implement AI responsibly. 

Notably, respondents from Singapore, Indonesia, India and China were all engaging experts or hiring AI experts at rates higher than the global average. However, this was not the case for Malaysian respondents who relied far more on being self-taught (50%) than their counterparts, suggesting a different approach to capability building in the market.

As Asia matures in AI application, refining underlying data practices will ensure its momentum endures. Converting unstructured data into refined, AI-ready information can support more accurate models, while robust security measures and governance frameworks help meet regulatory demands and align with global best practices.

Additionally, the survey reveals that as organizations advance AI initiatives, most IT leaders in Asia recognize the need for third-party support in critical areas, including hardware; data storage and processing solutions; software, and; skilled staff.