APAC Firms Inspired By The GenAI Wave

The Asia Pacific region is gearing up for a significant amount of change in 2024 across a variety of industries and business functions. Over the last couple of years, APAC firms have been trying to find their footing in the wake of the COVID-19 pandemic, focusing more on localized solutions and haphazard IT investments and less on customer experience. But 2024 brings new hope and change. The promise and potential of generative AI (genAI) combined with a new wave of technological innovations will inspire more APAC firms and leaders to follow some of the early trailblazers and to fuse the power of AI with their business efforts and outcomes in the year ahead.

With all of this in mind, here are three key predictions from our Predictions 2024: Asia Pacific report:

• Thirty percent of APAC firms will benefit from genAI’s transformative impact. While many APAC firms see genAI as a tool to boost efficiency, many will encounter obstacles in the form of an overly cautious work culture and gaps in data management capabilities. On a positive note, companies with more advanced IT practices, which make up about 30% of firms in the region, seem better prepared to make the most of the tech and are focused on using genAI to evolve their business models. But it’s essential to note that this evolution will be more of a gradual multiyear process than an overnight success story in APAC.
• One in four B2B marketers in APAC will double their customer engagement budgets. Forrester’s Marketing Survey, 2023, highlighted a mismatch in how APAC companies allocate their marketing funds. While customer marketing ranks second in terms of growth strategy for B2B marketing leaders in APAC, recent budgeting trends don’t reflect that. In light of new economic realities in the region and post-COVID business shifts, firms appear to be reconsidering their strategies. In 2024, B2B companies will place more emphasis on customer-centric marketing to drive growth.
• A fourth of APAC multinational corporations will adopt customer trust as a key mission, but only 5% will measure it. Trust is fundamental in business, and in the current climate of declining public trust, it’s more crucial than ever. By the end of 2024, we estimate that 25% of APAC’s big players will vocalize their commitment to earning customer trust. The real challenge, however, lies in putting these words into measurable actions. Only an estimated 5% of these firms might set tangible metrics to gauge and uphold this trust.

In a nutshell, the APAC region is bracing itself for a year of exploration and potential growth, with genAI at the center of it all. Read our full Predictions 2024: Asia Pacific report to get more detail about each of these predictions, plus two more bonus predictions for the APAC region: one focused on the use of AI in talent acquisition and the other on CIOs’ efforts in the region to reduce growing technical debt. Forrester clients can set up a guidance session to discuss these predictions or plan out your 2024 strategy in the APAC region.

If you aren’t yet a client, you can download our complimentary Predictions guide, which covers our top predictions for 2024. Get additional complimentary resources, including webinars, on the Predictions 2024 hub.