India forges ahead in AI adoption, driven by government and industry leadership: Dell – Express Healthcare

• Dell shares commissioned findings to help APAC organisations create their own AI implementation blueprint – exploring AI, GenAI and machine learning (ML) adoption in the region.

• The research reveals how organisations can overcome AI adoption challenges with the support of technology vendors for readiness assessments, roadmap design, model development and workforce training.

• India’s enterprise AI journey is characterised by remarkable and rapid expansion, particularly within government sectors, where a significant 4 per cent of Indian organisations are demonstrably outpacing their industry peers in AI and ML adoption.

• However, the report also revealed gaps in infrastructure, strategy, and workforce support to scale enterprise AI efforts, with 32 per cent of Indian organisations stuck in early stages of AI/ML implementation.

Dell Technologies and NVIDIA commissioned IDC to conduct a comprehensive analysis of enterprise AI adoption trends across APAC, offering strategic recommendations for businesses on how to drive AI success with technology partners. The results of this research are published in the IDC InfoBrief, Creating your AI Implementation Blueprint (doc ##AP242506IB, January 2025).

Why it matters:

AI, GenAI and ML are transforming industries across APAC, but many organisations struggle with talent shortages, integration complexities and aligning AI strategies with business objectives. The IDC InfoBrief “Creating Your AI Implementation Blueprint”, commissioned by Dell, highlights how technology partners can help businesses bridge these gaps, ensuring a smooth AI adoption process while maximising efficiency, innovation and competitive advantage.

Unlocking AI’s full potential: Key insights from “Creating Your AI Implementation Blueprint”

As AI adoption accelerates across APAC, organisations are taking a more strategic approach to integration, focusing on GenAI use cases that enhance operational efficiency, boost productivity and deliver personalised customer experiences.

However, AI implementation is not without challenges – businesses continue to grapple with a shortage of skilled talent, particularly in developed markets where competition for AI expertise drives up costs. Additionally, the success of AI initiatives hinges on the availability, quality and governance of data. Addressing these factors through a combination of internal investment and external collaboration is key to unlocking AI’s full potential. The IDC InfoBrief outlines several key findings related to AI adoption in APAC:

• AI and GenAI driving business innovation: AI adoption is on the rise in the region, with the AI-centric server market in APAC expected to reach US$23.9 billion by 2025. India’s enterprise AI journey is marked by rapid expansion, particularly within government sectors. Already, 4 per cent of Indian organisations outpace their industry peers in AI and ML adoption, signalling advanced adoption locally.

APAC spending on GenAI has also gained momentum. This year, 84 per cent of APAC organisations intend to allocate between $1 to 2 million towards GenAI initiatives. While organisations globally dedicate around 33 per cent of their budgets to GenAI, 38 per cent of AI budgets in APAC are allocated to GenAI, compared with 61 per cent combined for predictive and interpretative AI. Although businesses see vast potential to enhance productivity and customer engagement with these technologies, many still face challenges in aligning AI initiatives with strategic goals and integrating AI into existing workflows. While 35 per cent of ASEAN organisations are in the early stages of AI and ML implementations, 21 per cent say that their capabilities are already progressing systematically, with adoption spanning multiple functions.

• Evolving AI deployment strategies: AI and GenAI deployment strategies are evolving in APAC, with public cloud (including multicloud) as the top choice in 2024. However, there is a growing need for private AI and on-premises deployment, driven by security, cost efficiency, improved data sharing and collaboration and industry-specific requirements. Businesses are shifting from generic to specialised AI models, with CIOs prioritising data security, system integrity and optimised infrastructure choices across public, multicloud, hybrid and private cloud environments.
• Key challenges and considerations in scaling AI and GenAI: Enterprises face key concerns when scaling GenAI, including rising IT costs, regulatory and compliance risks, while meeting energy efficiency commitments. Skills gaps can delay digital transformation, slow product development and impact quality outcomes – over 72 per cent of enterprises in APAC stress the need for data and AI knowledge in new hires to bridge the gap in skilled AI talent. Security and privacy remain major concerns. IT teams must enhance readiness for GenAI adoption, while organisations expect external service providers to ensure AI system security, privacy, trust, infrastructure modernisation and custom AI model development. Despite the challenges, businesses see GenAI as worth the effort since it is a driver of operational efficiency, improved customer satisfaction and the creation of new business models.
• Laying the groundwork for AI success: Organisations in APAC are taking a structured, phased approach to AI adoption, prioritising high-impact use cases that deliver measurable benefits while managing risks. A strong AI foundation requires a marriage of people, process and technology. Key focus areas include investing in AI-ready infrastructure, fostering AI-centric teams, aligning AI strategies with business goals and implementing robust data governance to drive decision-making and long-term AI success.
• Strong reliance on specialised AI expertise to overcome challenges: APAC businesses recognise the value of partnering with strategic experts to build scalable infrastructure and bridge skills gaps. Organisations currently cite talent shortages, data privacy concerns and integration complexities as key barriers to AI success. Many businesses in the region rely on external developers (60 per cent) for AI applications, while only 30 per cent develop AI in-house and around 10 per cent use commercial off-the-shelf (COTS) AI solutions. Successful organisations are turning to technology partners for AI roadmaps, robust and scalable infrastructure, expert implementation support and workforce training to bridge internal capability gaps and accelerate AI deployment. Vendors who offer comprehensive, adaptive and scalable solutions will be well-positioned to address these changing business needs.

Industry-specific key findings: Banking and financial services, manufacturing, energy, healthcare, retail

Various industries across APAC are being transformed by AI, GenAI and ML, with organisations adopting AI-driven strategies to improve operations, enhance customer experience and drive innovation. The region is rapidly adopting GenAI use cases, with 87.4 per cent of APAC organisations deploying more than 10 GenAI use cases in 2024 and 25.6 per cent saying they will have more than 100 GenAI use cases in 2025. These use cases span numerous business functions, including IT operations, marketing, supply chain management, HR and more – with business leaders becoming key decision-makers.

• Banking and financial services: The banking and financial services sector is leading AI and GenAI adoption in APAC, with 84 per cent of organisations already using AI and 67 per cent deploying GenAI. 72 per cent of APAC banking and finance professionals believe GenAI will disrupt the sector in the next 18 months. Key applications include fraud detection, anti-money laundering and operational efficiency improvements. With AI and GenAI spending in financial services projected to grow at a Compound Annual Growth Rate (CAGR) of 25 – 31 per cent from 2023 to 2028, organisations are scaling AI initiatives across multiple functions, from customer service and HR recruitment to procurement and legal compliance. Banks favour composing AI solutions (47.8 per cent) – where organisations fine-tune an existing GenAI model on top of an enterprise AI platform – for flexibility, but require expert support in security, data management and infrastructure.
• Manufacturing: With 78 per cent of APAC manufacturers using AI and 54 per cent adopting GenAI, the industry is driving supply chain optimisation, predictive maintenance and quality control. AI-powered demand forecasting and real-time production monitoring are reducing downtime, minimising waste and enhancing operational precision. 49 per cent of manufacturers prefer composing AI solutions and seek specialised expertise in manufacturing execution systems (MES), supply chain integration and workforce upskilling. 52 per cent of manufacturers believe GenAI will disrupt the sector within 18 months, accelerating automated production, predictive lead scoring and digital twin models – advancing smart manufacturing and agile, high-precision production lines.
• Energy: APAC’s energy sector is adopting AI (83 per cent) and GenAI (73 per cent) to enhance grid optimisation, predictive maintenance and energy distribution, improving efficiency and reducing downtime. 42 per cent of energy companies are fine-tuning models, using enterprise data to improve smart grids and energy platforms. Many energy companies rely on external vendors due to skills and infrastructure gaps, requiring specialised support for data management and workforce upskilling. 54 per cent believe GenAI will disrupt their business models in the next 18 months. Top use cases include sales enablement, cybersecurity, enhanced risk management and digital twin models. Investment in AI infrastructure and responsible AI practices are priorities, with global firms building AI hubs in APAC to drive innovation in grid management and accelerate the transition to cleaner energy.
• Healthcare: 86 per cent of healthcare companies in the region are using AI, with 59 per cent adopting GenAI to enhance diagnostics, predictive analytics and personalised treatment plans. AI-driven use cases like real-time patient monitoring and demand forecasting streamline workflows, reduce errors and improve patient care. 58.2 per cent of healthcare organisations prefer composing AI solutions, tailoring them to specialised needs like diagnostics, while external vendors help address AI skills gaps and regulatory complexities. 67 per cent of healthcare companies believe GenAI will disrupt their business models within 18 months. AI investments are expected to increase – particularly in clinical excellence, operational efficiency and financial optimisation, enabling a transformative shift inpatient care and treatment planning.
• Retail: The APAC retail sector is being reshaped with 82 per cent of retail companies using AI and 63 per cent using GenAI, alongside increasing investment in AI and GenAI agents. AI agents are now critical for retail businesses by driving personalised recommendations, predictive inventory planning and dynamic pricing strategies. 42 per cent of retailers expect GenAI to disrupt their business models within 18 months, with other key use cases including digital commerce and augmented fraud analysis. Retailers are increasingly composing AI solutions (43.3 per cent), but face challenges in data readiness and talent availability. To address this, retailers are focusing on building internal AI capabilities to improve customer experience and operational efficiency – while also relying on external vendors to fill AI skills gaps, particularly for tasks like data security and systems integration.

Perspectives:

“India is fast emerging as a frontrunner in APAC’s AI landscape, with 4 per cent of organisations already leading in adoption. To accelerate this momentum, Dell Technologies commissioned research to help businesses build actionable AI blueprints across AI, GenAI, and ML. The findings underscore a clear path forward: with the right strategy, scalable infrastructure, and expert partnerships for readiness assessments, roadmap design, and model development, organisations can fast-track AI implementation and unlock measurable outcomes—from enhanced customer experiences and operational efficiency to entirely new business models that fuel long-term growth”, said Venkat Sitaram, Senior Director & Country Head, Infrastructure Solutions Group Specialty Sales, India, Dell Technologies.

“The Asia Pacific region holds immense potential to lead the way in AI adoption and innovation. Now is the time for enterprises to move beyond proof of concept (POC) and focus on achieving measurable return on investment (ROI),” said Chris Kelly, Senior Vice President, Infrastructure Solutions Group Specialty Sales, APJC, Dell Technologies. “The journey to consistent ROI is complex and requires comprehensive support across every stage – strategy, use case development, data preparation, governance, optimisation, and scaling AI implementations. With the support from technology partners, enterprises can overcome adoption challenges and accelerate their path to impactful, results-driven AI outcomes.”

Research Methodology:

The findings in the IDC InfoBrief, sponsored by Dell Technologies and NVIDIA, “Creating Your AI Implementation Blueprint” (IDC #AP242506IB), January 2025, are based on multiple IDC data sources and surveys conducted from August 2023 to August 2024, spanning up to 919 respondents across industries in APAC. The research evaluates AI, GenAI and ML adoption trends, challenges and strategic approaches to implementation.