AI and low-code synergy accelerating application development in APAC

By 2026, 40% of net-new applications in APAC are projected to be intelligent apps that incorporate GenAI to enhance user experiences and create new use cases.

AI-powered low code solutions are essential for organizations to drive innovation and greater productivity at a faster pace. Given that businesses in the Asia Pacific (APAC) region are eager to launch generative AI applications, the demand for faster application development is driving the acceleration for low code.

According to a study by IDC and OutSystems, over 60% of applications in APAC still run on legacy systems. Not only does this pose hurdles like rigid architecture, it also results in very high maintenance costs. At the same time, skills shortage in developing and managing AI remains a major concern especially when businesses consider modernizing legacy systems, which also remains a priority.

There is no doubt that outdated frameworks and low developer productivity often hinder progress. As such, 68% of APAC enterprises are turning to modern development tools to overcome these obstacles. This includes deploying low-code, integrated development environments (IDEs), and DevOps.

Low-code platforms help organizations streamline software development, specifically by enabling faster application creation with minimal coding. It’s popular within industries as well because of the low coding knowledge required to work with low-code. These capabilities are now also application to AI-powered low-code solutions.

Put simply, AI-powered low-code solutions automate complex processes and deliver intelligent insights, which boost efficiency and spark innovation. As a result, 25% of APAC enterprises are now prioritizing the integration of GenAI into developer tools to drive more intelligent application development. The trend is also consistent across the APAC region, with a notable uptake in Australia, India, Japan, and Southeast Asia.

Currently, 33% of enterprises recognize low-code as a critical tool for driving automation and future-proofing their businesses. Looking at the APAC region, Southeast Asia and Hong Kong lead APAC respectively with 49% of enterprises prioritizing low code for automation solutions, followed by India and Australia.

"The integration of GenAI with low-code technologies is poised to meet the increasing demand for rapid application delivery and legacy modernization,” said Dhiraj Pramod Badgujar, Senior Research Manager, XOps Software Development and AI Developer Strategies Practice, IDC Asia/Pacific.

“Our research reveals that organizations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity,” added Badgujar.

According to Mark Weaser, Vice President, APAC at OutSystems, they are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between GenAI and low-code.

“In today's competitive landscape, OutSystems is proud to remain committed to empowering APAC enterprises to deliver mission-critical applications at scale and overcome challenges such as talent shortages and evolving market demands,” said Weaser.

The Future of Intelligent App Development

Intelligent apps are apps that incorporate GenAI to elevate the use experience and unlock new use cases. By 2026, the report forecasts that net-new applications in APAC will be intelligent apps. In software development and design, GenAI will lead to increased productivity, high value dev tasks or creativity, and accelerated developer velocity.

Interestingly, the findings also reveal that AI and automation initiatives, along with application development platforms, are among the most resilient to budget cuts, even in uncertain economic climates. In fact, the report revealed that 30% of APAC enterprises are willing to pay a premium of 11% to 20% for GenAI features integrated into app development environments.

Daniel-Zoe Jimenez, Vice President, Digital Innovation, Software, CX, SMB/DNB and Channels Research, IDC Asia/Pacific highlighted that the research shows that many businesses in the region are actively considering opportunities to layer GenAI with low-code technologies.

"One of the main benefits of this integration is that it can help organizations accelerate their legacy modernization journeys. This approach can shorten the software development life cycle, while maintaining high application performance,” said Jimenez.