Prompted by ChatGPT, GenAI has raised business leaders’ expectations regarding the usefulness of AI in delivering operational and business value. As per a Lenovo study, companies in the Asia Pacific are planning to increase AI expenditure by 45% in 2024 compared to previous year. Chief information officers (CIOs) across India (28%) and Korea (33%) lead in GenAI investments in the AP region, followed by ASEAN+ (11%), ANZ (2%), and Japan (2%). Gartner forecasts the global AI market will surge from $124 billion in 2022 to $297 billion by 2027.
Amit Luthra, MD– India, Lenovo Infrastructure Solutions Group, said, “CIOs in India are confident about AI, with 95% expressing certainty that it will create a competitive advantage, and 57% of them consider it to be a game changer for their firms. ”
Time to up the ante
The ‘CIO Playbook 2024 – It’s all about Smarter AI’ report, by IDC and commissioned by Lenovo surveyed 900 CIOs, including 150+ in India. It reveals that 84% of CIOs are already using AI to bolster their security frameworks, with 14% planning more investments.
GenAI finds primary application in risk and fraud detection within the BFSI sector. In manufacturing, AI-powered predictive maintenance systems enable autonomous real-time equipment monitoring and anomaly detection.
The report also noted the massive shift in CIO priorities,with AI topping the list. Across Asia Pacific, revenue and profit growth have shifted from the top to number three this year, while customer experience have come in the top two. This underscores a strategic shift towards cutting-edge innovations in the evolving business environment, says Sumir Bhatia, president, Asia Pacific, Lenovo ISG.
A mismatch of priorities
Business and IT leaders diverge in their perspectives. While business leaders prioritise GenAI to enhance customer experience, CIOs exhibit cautious optimism, ranking GenAI as the fourth tech priority. This could be attributed to the higher enthusiasm of business leaders. IT leaders, on the other hand, must grapple with implementation challenges. “Ultimately, IT and business leaders will need to identify the right AI model and identify the appropriate use cases,” said Bhatia.
CIOs also highlight that the top challenge for AI is the reliance of GenAI on datasets, a resource most firms lack. Job security and the lack of skills are top concerns for IT staff. Notably, India exhibited the highest job security within the region.
“We’re bringing AI everywhere through our pocket-to-cloud solutions and an ecosystem of 50+ ISVs and 165+ AI solutions.
Sumir Bhatia, president, Asia Pacific, Lenovo ISG
