IDC: Agentic AI to disrupt business models in APAC

IDC study reveals 70% of Asia Pacific organizations expect agentic AI to disrupt business models within the next 18 months.

According to a recent study by IDC, about 70% of Asia Pacific organizations expect agentic AI to disrupt business models within the next 18 months. The Understanding Agentic AI Technology Adoption in Asia/Pacific study revealed that organizations in the region are looking to drive operational efficiencies, improve customer engagement, and enhance decision-making by adopting agentic AI.

But do businesses really understand what agentic AI is? This is now the next buzz word as businesses look to the next step of their AI journey. However, the study by IDC also revealed that 30% of the 300 responses collected from APAC organizations feel agentic AI will not impact them, with 8.2% having no clue of what agentic AI means to them as well.

For some, this may be concerning. But the reality is, agentic AI may not be a requirement for all organizations in the future. As with any AI use case, the purpose of agentic AI deployment would depend solely on its purpose. Currently, most organizations are still at their early implementation stages of automation and basic AI use cases.

Agentic AI would seemingly be more on the agenda for companies that have already deployed GenAI use cases and workloads in their organization. For these companies, agentic AI is not only the next step in their AI journey but also takes them a step closer to being fully autonomous and having greater capabilities and efficiency.

According to Deepika Giri, head of research, Big Data & AI, IDC Asia/Pacific, agentic AI workflows offer a more intelligent approach to adopting and integrating GenAI into business operations. However, it is crucial to recognize the importance of security and trust when implementing these systems.

As the study clearly indicates, 5% of organizations have already witnessed firsthand the disruption agentic AI can have on their business models. 43.5% expect agentic AI to have a moderate impact on their business models in the 18 months.

“The underlying data ecosystem must evolve to support agent-based architectures by enabling dynamic data pipelines that facilitate the seamless flow of multimodal data across systems. The rise of multi-agent system architectures will represent the next major wave in AI adoption,” added Giri. Deepika Giri, head of research, Big Data & AI, IDC Asia/Pacific.

Tech vendors continue to highlight the significance of agentic AI. Indeed, agentic AI is set to become a key investment area for businesses navigating the next wave of AI-driven transformation, given its capabilities to drive speed, efficiency, and augmented decision-making.

At the same time, businesses are also aware of the challenges with agentic AI, especially around explainability, governance, and data security that underscore the need for robust frameworks, dynamic pipelines, and scalable architectures.

Surjyadeb Goswani, research director, AI & Automation, IDC Asia Pacific believes that apart from customer care, which is the earliest adopter of agents, ITOps, and research and development are the top two areas in which agentic AI will be integrated across the enterprise.

Earlier this month, the Worldwide ICT Spending Guide Enterprise and SMB by Industry report projected the overall ICT spending in Asia Pacific to reach US$1.4 trillion in 2025, with a CAGR of 5.8% through 2028. The trend indicates that businesses are embracing ICT spending by focusing on digital transformation initiatives, AI implementation, and strengthening cybersecurity infrastructure. However, it remains to be seen how much of this will be specifically on agentic AI solutions.

"The emphasis is no longer solely on acquiring the latest technologies, but on strategically deploying solutions that address specific business challenges and drive measurable outcomes. We're seeing a move towards pragmatic investments that enhance productivity and a stronger focus to improve customer experience,” commented Mario Allen Clement, associate research manager, Data and Analytics, IDC.