---
title: Asia Pacific to spend US$32bn in 2025 on artificial intelligence - Developing Telecoms
description: Asia Pacific spending on artificial intelligence (AI) systems will rise from $17.6 billion in 2022 to around $32 billion in 2025, said a study.

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Asia Pacific spending on artificial intelligence (AI) systems will rise from $17.6 billion in 2022 to around $32 billion in 2025, said a study.

According to IDC's latest Worldwide Artificial Intelligence Spending Guide, businesses invest in AI to gain a competitive advantage through improved customer insight, increased employee efficiency, and accelerated decision making.

IDC forecasts a compound annual growth rate (CAGR) of 25.2% for the period 2020-2025, the study noted.

Over the next five years, the banking industry will continue to invest the most in AI solutions. Risk mitigation would be vital for the banking industry's AI investment through augmented threat intelligence and fraud analysis applications.

State/Local government is the second-highest spender on AI solutions, focusing on public safety and emergency response, augmented threat intelligence, and prevention systems. For the next five years, the next top spending industry is professional services, growing fast with 26.6% (CAGR).

The key focus area is augmented customer service agents, which help resolve customer issues. Smart business innovation and automation will optimise and streamline complex and repetitive business tasks to support organisational decision-making.

The top five use cases account for $6.1 billion, or 34.5% of total AI spending, and are forecasted to grow to 10.8 billion by 2025.

Investments in use cases such as augmented customer service agents, sales process recommendation and augmentation, and smart business innovation and automation solutions are pervasive across all industries.

Hardware will be the leading technology, accounting for more than 49.8% of AI spending; the largest areas of investment will be in servers, accounting for more than 84 % of total spending, while the rest will go toward storage.

Software is the second leading technology with 31% of AI spending. 71% of total AI spending in Software goes towards AI Applications and Artificial Intelligent Platforms. Services have the fastest spending growth, with a five-year CAGR of 34.3% in technology.

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