AI & low-code innovation transforming APAC development

Recent research underscores the synergy between Artificial Intelligence (AI) and low-code development in expediting application development across the Asia-Pacific (APAC) region.

A report from IDC, sponsored by OutSystems, reveals that businesses in APAC are increasingly utilising AI-powered low-code solutions to accelerate innovation and improve productivity amidst growing digitalisation demands.

An alarming 60% of applications in the region are legacy systems, which present challenges such as inflexible architectures and significant maintenance costs. The report indicates that modernising these systems is a critical priority for enterprises, especially as they face skills shortages that amplify these challenges. Currently, 68% of APAC enterprises are investing in contemporary development tools like low code, integrated development environments (IDEs), and DevOps to address these issues.

Low-code platforms streamline the software development process by allowing faster application creation with minimal coding.

The integration of AI within these platforms automates complex procedures and delivers intelligent insights, enhancing efficiency and sparking innovation. Approximately 25% of APAC enterprises are focusing on embedding generative AI (GenAI) into developer tools to foster intelligent application development, a trend echoed across Australia (25%), India (24%), Japan (26%), and Southeast Asia (23%).

Mark Weaser, Vice President, APAC at OutSystems, commented, "We 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."

IDC forecasts indicate that by 2026, 40% of new applications in APAC will be "intelligent apps" leveraging GenAI to enhance user experiences and unlock new use cases. The incorporation of GenAI in software development and design is expected to significantly improve productivity (61%), facilitate high-value development tasks and creativity (50%), and boost developer velocity (40%).

The research also highlights the resilience of AI and automation initiatives, as well as application development platforms, against budget reductions even in unstable economic conditions. It finds that 30% of APAC enterprises are prepared to pay a premium of 11-20% for GenAI features within app development environments.

Daniel-Zoe Jimenez, Vice President, Digital Innovation, Software, Customer Experience, Small and Medium Businesses/Direct-to-Network Business and Channels Research, IDC Asia/Pacific, stated, "Our 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."

The rising adoption of low-code technologies continues across APAC, with 33% of enterprises identifying it as vital for driving automation and securing future readiness. IDC predicts a global trend by 2025, with over 60% of businesses adopting low code for faster application delivery and enhanced operational efficacy. Within APAC, Southeast Asia and Hong Kong are at the forefront, with 49% of enterprises prioritising low-code for automation, trailed by India (35%) and Australia (31%). This progression signifies a recognition of low-code's strategic worth in gaining a competitive advantage, particularly as markets contend with economic uncertainties and the scarcity of skilled developers.

Dhiraj Pramod Badgujar, Senior Research Manager, XOps Software Development and AI Developer Strategies Practice, IDC Asia/Pacific, added, "The integration of GenAI with low-code technologies is poised to meet the increasing demand for rapid application delivery and legacy modernization. Our research reveals that organizations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity."