AI Investment Surge in Asia‑Pacific Fueled by Fear of Missing Out, Yet Returns Remain Low

A recent IDC survey of 800 technology leaders shows that about 70% of organisations worldwide are increasing AI spending, with 37% of Asia‑Pacific firms investing aggressively despite little evaluation of returns. The pressure is strongest in Australia (45% aggressive) and Vietnam (44%), while more than one‑third of Singaporean firms admit the same. Across the region, only 40% say AI projects have met or exceeded expectations, compared with 19% globally, and the main shortfalls stem from poor‑quality training data, cost overruns and under‑performing models. Network and infrastructure readiness also lag, with just 9% of APAC firms describing their networks as fully prepared for AI workloads.

In parallel, global AI spending is projected to hit $2.5 trillion in 2026, but only one in 50 AI investments delivers transformational value and just one in five yields measurable ROI. Within human‑resources, 61% of leaders have deployed AI tools, yet only 12% report mature, sustained use. Former BlackRock HR head Jeff Smith warns that many firms rush to adopt vendor solutions without rigorous problem definition or foundational work on data quality, governance and change management, leading to a gap between promised and actual outcomes.

Both reports underline a widening gap between AI ambition and realised benefit, emphasizing the need for better evaluation, infrastructure upgrades and disciplined procurement practices to close the performance shortfall.