Investments in AI surge, but challenges in data quality and cyber security readiness persists

SINGAPORE, Dec. 20, 2024 /PRNewswire/ -- As ASEAN enterprises dive deeper into digital transformation, artificial intelligence (AI) has emerged as the crown jewel of technology investments. What does this mean? Well, according to the 2024/2025 ASEAN Enterprise Innovation Market Overview AI has surged to the forefront as the leading investment priority. Insights from over 900 ASEAN business and technology leaders across diverse industries reveal that 75% of businesses plan significant AI investments within the next two years - a leap from just 34% in 2020.

But while the race to adopt AI is accelerating, it's not all smooth sailing. Data quality and availability remain stubborn roadblocks, cited by nearly 78% of respondents as the biggest hurdle to unlocking AI's potential.

It's a complicated relationship status: while AI ambition skyrockets, the groundwork for its success is still a work in progress.

Cyber Security: Rising Threats, Growing Budget

As the digital landscape evolves, so do the threats. ASEAN governments are stepping up their game with stringent regulations, such as Malaysia's Cyber Security Act this year and Vietnam's Personal Data Protection Act, pushing enterprises to bolster their defences.

Some of the pressures cited include Phishing and Social Engineering attacks (42.9% of respondents), followed closely by malware and ransomware, and not to mention a glaring shortage of skilled cybersecurity talent.

Yet, many businesses seem to be caught in a budgetary bind. While 25.5% of respondents believe 'more than 15% of IT budget' should be devoted to cyber security, only 5.9% of respondents are making such allocations.

The result? A widening gap between the security measures organisations know they need and what they're actually implementing.

ASEAN's Digital Transformation: Opportunities and Challenges

Beyond AI and cyber security, the report shines a spotlight on how digital technologies are becoming key allies in addressing Environmental, Social, and Governance (ESG) goals.

Over half of ASEAN enterprises see digital tools as essential to tackling these challenges, underlining a growing alignment between innovation and sustainability.

But hurdles remain. Legacy IT systems and organisational silos still hold back progress, with 41% of businesses identifying these as significant barriers to digital transformation.

What's Next for ASEAN Enterprises?

To keep pace with the region's rapid digital transformation, ASEAN enterprises are also focusing on emerging technologies beyond AI, including big data analytics, Internet of Things, and robotic process automation. However, challenges in talent acquisition, data readiness, and cyber security preparedness persist.

To thrive in this ever growing landscape, enterprises need more than just cutting edge tech. They require robust strategies that balance innovation with sustainability, data governance, and cyber resilience.

Explore exclusive country-specific insights and sector analyses in the AIBP ASEAN Enterprise Innovation Market Overview 2024/2025. Stay ahead in a dynamic market-register now for your access: https://www.aibp.sg/aibp-reports-2024

About the ASEAN Enterprise Innovation Market Overview Report

Since 2016, the ASEAN Enterprise Innovation Market Overview Report has served as an insight into how digital transformation is shaping the Southeast Asia region. Each year it gathers insights from hundreds of business and technology leaders from various industries, offering valuable perspectives on trends, challenges and progress in the digital space. The survey highlights key areas like investment focus, technology adoption and challenges across countries. The ASEAN Enterprise Innovation Market Overview is a useful resource for business leaders, policy makers and innovators who want to understand the region's digital growth and make informed choices.

About ASEAN Innovation Business Platform (AIBP)

AIBP serves as an avenue for public and private organisations in Southeast Asia to access information about enterprise growth and innovation. With a current network of over 30,000 stakeholders in Southeast Asia, AIBP continues to develop ecosystems by engaging in activities which create value-adding information for our stakeholders seeking to make transformative impacts within their organisations. For additional information about AIBP, please visit www.aibp.sg