Asia-Pacific firms focus AI spend on tech over talent

The latest survey by Accenture reveals that generative AI adoption among Asia-Pacific businesses is accelerating, but the investment emphasis is on technology rather than the human talent required to operate it effectively.

According to the survey findings, 87% of Asia-Pacific businesses are planning to enhance AI investment in preparation for significant changes anticipated in 2025. However, a disparity in investment focus has been highlighted, with data from 2,000 generative AI-related projects indicating that three times more budget is spent on technology than on personnel. Matt Coates, Technology Lead for Accenture in Australia and New Zealand, commented on this trend stating, "Too many organisations view generative AI solely as a technological solution, rather than as a driving force to rethink talent strategies."

Accenture's research surveyed 790 C-suite executives alongside 687 non-executive employees across 22 industries in five countries, including Australia, China, India, Japan, and Singapore. A significant number of executives, 87%, reported feeling ready to increase generative AI investments. These investments are driven by desires to capitalise on technological advancements, maintain competitiveness, and increase confidence in handling associated business risks.

Despite increased investments, only 55% of C-suite leaders claim to understand the potential value of generative AI "to a great extent," a sentiment shared by only 30% of employees. The survey also suggests that while 91% of C-suite leaders believe that their employees have received adequate training to use AI efficiently, only 70% of employees concur.

As generative AI becomes more embedded in business operations, 79% of employees anticipate a significant impact on their roles. There is a consensus that organisations investing in workforce transformation and upskilling will lead in the AI-driven era. However, current training efforts might not be at the right level or targeted in the right areas, as highlighted by the gap in C-suite and employee perspectives on training adequacy.

Among employees hesitant to use generative AI tools, accuracy concerns, a lack of resources, and integration difficulties were cited as primary issues. Coates emphasised the challenges, noting, "While investments in AI continue to grow, many still face significant challenges in understanding, training, and implementation."

The research also points to expected changes in the business landscape. A majority of executives (69%) anticipate a higher level of change in 2025 compared to 2024, yet 61% admit their organisations are less prepared for disruption across various dimensions, including geopolitical, talent, and economic disruptions.

In terms of specific preparedness, 66% of leaders are not fully prepared for geopolitical disruptions, 58% for talent disruptions, and 63% for economic disruptions. Employees tend to be even more pessimistic about their company's readiness, with 68% reporting their firms are not fully prepared for unforeseen changes.

Coates reiterated the need for a strategic approach that balances technology and human talent, saying, "Only a third of executives have a clear vision for how generative AI will impact their workforce. This emphasises the importance of a strategic approach that harmonizes technology and human talent to fully realise the power of reinvention that gen AI provides."