The Future of AI in APAC: Opportunity or Looming Crisis

APAC Businesses Struggle with AI Risks Despite Rapid Adoption

A new report from Accenture has revealed a startling gap in AI preparedness across the Asia-Pacific (APAC) region. Despite rapid advancements and increasing AI adoption, only 1% of enterprises in APAC, including India, are fully equipped to handle risks associated with AI, such as compliance, privacy, and data security.

AI Investment on the Rise

According to Accenture’s study, 90% of organizations plan to deploy agentic AI models within the next three years. Furthermore, investment in responsible AI is expected to surge fivefold, from 10% to 50% in the next two years.

The Growing Importance of Responsible AI

Ryoji Sekido, Co-CEO of APAC and CEO of Asia Oceania at Accenture, emphasized the need for businesses to build trust in AI. He stated:

"To effectively scale AI, particularly generative and agentic AI, businesses need to invest in building trust among their people and customers, ensure they have the right data foundation, and operationalize responsible AI. That’s the only way to create long-term, sustainable value."

Top AI Concerns for APAC Companies

The report identified several key challenges businesses face in AI adoption:

• Privacy and Data Governance (57%) – Most cited concern due to increasing regulations.
• Security (53%) – AI systems remain vulnerable to cyber threats.
• Revenue Growth (48%) – Companies see responsible AI as essential for long-term gains.

AI in India: The Need for a Human-Centered Approach

Saurabh Kumar Sahu, MD and Lead for India Business at Accenture, highlighted India’s growing AI landscape, stating:

"As businesses in India increasingly embrace AI and generative AI, the importance of responsible AI adoption cannot be overstated. Ensuring human-centered, fair, safe, and sustainable AI is crucial for building trust and driving the right outcomes."

Accenture’s Recommendations for AI Readiness

To bridge the gap, Accenture recommends that companies:

1. Establish AI Governance – Implement clear policies and ethical guidelines.
2. Conduct AI Risk Assessments – Identify and mitigate compliance and security risks.
3. Enable Systemic Responsible AI Testing – Ensure transparency and fairness in AI models.
4. Implement Continuous Monitoring – Keep AI systems aligned with regulations.
5. Address Workforce Impact – Focus on AI upskilling, sustainability, and security.

India’s AI Mission: A Step Towards Global Leadership

The Indian government’s IndiaAI mission aligns with Accenture’s recommendations, focusing on:

• Responsible AI Development – Implementing AI ethically across industries.
• AI Skilling at Scale – Preparing the workforce for AI-driven jobs.
• Widespread AI Adoption – Encouraging businesses to integrate AI responsibly.

The Future of AI in APAC

As AI adoption accelerates, businesses in APAC must prioritize responsible AI frameworks to mitigate risks and unlock its full potential. With government support and strategic investments, the region can emerge as a global AI leader while ensuring security, fairness, and trust.