Asia is racing to adopt generative AI (GenAI) at a pace that surpasses other regions, with APAC now second only to North America in adoption of the technology. To understand how the region’s businesses are engaging GenAI, BCG surveyed 240 CxOs and senior executives from eight industries across five areas—China, India, Southeast Asia, Northeast Asia, and Australia/New Zealand. (See “Methodology.”) (Note: This analysis uses the terms “generative AI,” “GenAI,” and “AI” interchangeably, reflecting the pace of the technology’s evolution as AI tools frequently come together in diverse use cases.)
The companies gaining value in APAC’s GenAI surge have much in common: CEOs who champion the technology; strong links between AI and business objectives; and plans to invest in AI over the next several years. Others in the region can match these results with key changes in strategy. If 2023 and 2024 were Asia’s proof-of-concept phase, 2025 is the year to scale.
Methodology
Our detailed survey assessed over 30 dimensions of GenAI readiness and impact, driven by four key queries:
- What is the current level of GenAI adoption across APAC, and how do different regions and industries compare?
- Do APAC enterprises have a clear GenAI strategy, and how are they investing to drive measurable outcomes?
- How well prepared are APAC enterprises to execute GenAI, and are they ready for full-scale deployment?
- What are the critical bottlenecks and success factors impacting GenAI adoption in APAC?
The GenAI Race Shifts
North America has long been the world’s leader in technology adoption, but in terms of GenAI, Asia-Pacific is narrowing the distance. Across the region, the perceived value of generative technologies is higher than in Europe and just a percentage point behind North America. In both North America and Asia-Pacific, 16% of organizations are finding proven value with AI—but APAC is investing more heavily overall.
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Frontrunners China and India are using GenAI to modernize sectors and develop talent. Some of the world’s most impactful technology is coming out of the region, too; China’s DeepSeek will drastically speed up the development and lower the cost of training open-source large language models. (Learn how countries like China, India, and Singapore have put groundbreaking national AI strategies in play.)
With adoption in the tech industry reaching over 80%, players in the sector are making GenAI core to offerings in cloud application services, broader cloud services, and data centers. Consumer packaged goods businesses are using customer data in plenty of GenAI use cases for better customer engagement.
Looking for Cost Savings, Revenue Boosts—and Partners
More than 90% of companies are planning to scale up GenAI over two years, and the technology’s effectiveness in managing costs and lifting revenues is a big hook. Over half the respondents plan to work with partners to expand their AI capabilities.
Big Goals and Building Blocks for GenAI Success
According to BCG research, 1 in 4 businesses have scaled GenAI and are finding greater ROI with several key actions. They focus on bigger goals and fewer, more impactful use cases. True to these patterns, APAC businesses that have scaled AI technologies expect big payoffs. For example, mature companies in the region are enjoying 25% shorter time-to-market with GenAI products.
Our survey also uncovered strategic building blocks that organizations can implement to advance their GenAI capabilities.
Visionary CEO Leadership
Responsibility for GenAI often falls to those in technology leadership roles; 62% of respondents call the CTO the main sponsor of GenAI projects. The CEO must also be a visible, vocal guide in the firm’s technology transformation.
Integrated Strategic Alignment
Seventy percent of respondents report having a strong alignment of corporate strategy and technology implementation.
Big Bold Bets
Experienced organizations are investing more and committing 26% more FTEs to upskilling.
Evolving Ways of Working
Businesses that are scaling GenAI have prepared their employees, infrastructure, and processes to make the most of the technology, with almost 30% of existing workflows fully ready and optimized.
Safeguarded Practices
Organizations that safeguard artificial intelligence with guardrails like responsible AI can do more with the technology. Innovation becomes more rewarding. Pilots scale into established workflows with lower risk.
A Playbook for Advancing with GenAI
Based on the perspectives of leaders we surveyed and our own field experience, APAC organizations can take the following steps to deploy GenAI effectively and optimize its benefits.
- Break through AI’s imagination gap. Rethink what is possible with AI and business transformation.
- Target and prioritize AI efforts. Focus on a few transformative opportunities in core functions.
- Put AI at the core of enterprise ambition. Define and track clear KPIs, including EBIT.
- Lead the cultural and organizational change. Executives can lean in personally and drive the change.
- Prepare for what’s next. Anticipate AI’s next value play—agentic solutions or open-source models—and the accompanying risks.
Asia’s rapid adoption of generative AI highlights how both large and small economies are recognizing its critical role in business. By following the strategies of APAC’s leaders in deploying AI, organizations can unlock significant value and push their growth.
