A new report from IDC has revealed that while AI deal volumes dipped in 2024, total capital invested in AI-native digital businesses (DNBs) in Asia Pacific hit $15.4 billion, driven by growing interest in scalable solutions and industry-specific innovation.
The information technology sector led AI investment activity in Asia Pacific in 2024, according to IDC, with the majority of deals targeting cloud computing, cybersecurity, SaaS platforms, data analytics, and machine learning.
Healthcare followed as a fast-rising sector, driven by breakthroughs in diagnostics, drug discovery, and personalized treatment.
Regionally, China, South Korea, and Japan attracted the most AI capital, while India stood out for its software-driven, scalable AI innovation.
Other key highlights include:
- Over 50% of DNBs in Asia Pacific remain in the “repeatable” stage of AI maturity, lagging behind North America and Europe.
- Only 29% of DNBs have reached the optimized stage with fully scaled AI deployments, creating a significant opportunity for vendors to support infrastructure readiness, data integration, and automation use cases.
- 42% of DNBs now seek strategic co-innovation from vendors, favoring those that provide modular, scalable platforms and localized support.
The report is based on IDC’s AI survey and includes data from 2,300+ VC deals and direct responses from digital-native businesses across Asia Pacific.
“With a unique blend of tech ambition, government and policy support, and agility of DNBs, Asia Pacific is emerging as a global epicenter for AI investments. Those that scale responsibly, localize intelligently, and partner strategically will be the true winners in this space,” said Supriya Deka, research manager for Asia Pacific small and medium-sized businesses and DNBs at IDC Asia Pacific.
