A new report from Avanade reveals that mid-market organisations in Asia Pacific are embracing artificial intelligence (AI) with confidence, with most anticipating up to fourfold returns within 12 months. However, gaps in workforce readiness, data governance, and technology infrastructure are significant obstacles to achieving sustainable returns.
The Avanade Trendlines: AI Value Report 2025 draws on insights from 4,100 global business and IT decision-makers. Key findings include:
- Strong enthusiasm for AI’s potential: The top goal for 2025 is the use of AI tools, such as Microsoft Copilot, to drive new revenue while fostering a collaborative workplace culture.
- Increased budgets: 87% of respondents expect to increase their budgets for generative AI projects by up to 50%.
- Competitive pressures: 85% expressed concern about losing their competitive advantage without rapid AI adoption, making fast-tracked implementation a priority.
- Essential AI groundwork still to be done: Nearly half remain at the business case (48%) or proof-of-concept (44%) stage.
The report also highlights critical concerns around technology infrastructure and data security:
- Modernising legacy systems: 95% of leaders are fast-tracking plans to upgrade ageing systems.
- Data governance challenges: 76% cite poor data quality and governance as barriers to AI progress.
- Sensitive data protection: With 94% identifying sensitive data protection as critical, companies are ramping up investments in data governance. Plans include implementing new data platforms (44%) and establishing governance standards (41%).
- Budget allocation for scaling AI: Spending priorities include data and analytics platforms (27%), automation (17%), and security and cyber resilience (15%).
To help mid-market organisations in Asia Pacific address these challenges, Avanade has introduced seven new AI services that combine its industry and technical expertise with Microsoft’s secure, AI-powered platforms and tools. These services are tailored to deliver enterprise-grade innovation at a scale suited to mid-market needs:
- Accelerate Revenue Generation: Equips sales teams with AI-powered tools to increase productivity, enhance customer engagement, and drive revenue beyond traditional CRM systems.
- AI-Powered Migration and Modernisation: Guides organisations through cloud migration to Microsoft Azure, mitigating risks, addressing technical debt, and optimising costs while building an AI-ready digital core.
- Build and Modernise AI Apps: Supports the development of AI-powered applications, integrates AI into legacy systems, and creates scalable architectures for continuous improvement.
- Drive Business Transformation with Copilot: Leverages Microsoft 365 Copilot with responsible AI methods to unlock innovation and value, supported by accelerators and industry expertise.
- Modernise ERP: Enhances business adaptability and growth with a modern, AI-led ERP platform, reducing total cost of ownership and enabling better decision-making.
- Unify Your Intelligent Data and Analytics Platform: Addresses challenges with legacy technology and data complexity, empowering employees with improved data access and insights.
- Unify Threat Protection: Strengthens security using Microsoft Threat Intelligence, Sentinel SIEM, EDR, and Security Copilot to detect and address threats proactively.
Bhavya Kapoor, Avanade’s President for Asia Pacific, commented: “Asia Pacific is a dynamic economic region with its present and future success underpinned by diverse demographics, regional collaboration, and tremendous potential for high growth. Coupled with rapid advancements in artificial intelligence (AI) and the region’s appetite for innovation, mid-market companies in Asia Pacific are at a pivotal juncture in their growth and transformation.”
More information about Avanade’s new AI services in Asia Pacific are available here. The full Avanade Trendlines: AI Value Report 2025 is available for download here.