Dell Technologies release -AI adoption acclerated in India

Artificial intelligence (AI) adoption across Asia Pacific (APAC) is gathering momentum, and India is moving ahead at a striking pace. A new IDC InfoBrief, Creating your AI Implementation Blueprint (doc ##AP242506IB, January 2025), commissioned by Dell Technologies and NVIDIA, highlights how organisations in the region are aligning AI, GenAI and ML with business outcomes, despite challenges around talent, integration and governance.

Dell Technologies study - AI is gaining ground across APAC

The IDC study finds that AI adoption is on the rise across the APAC region, with the AI-centric server market expected to reach USD 23.9 billion by 2025. Spending on GenAI is accelerating, with 84 per cent of organisations in the region planning to invest between USD 1 and 2 million this year. On average, 38 per cent of AI budgets in APAC are now allocated to GenAI, compared with 61 per cent for predictive and interpretative AI.

India stands out as a frontrunner. About 4 per cent of Indian organisations already outpace peers in AI and ML adoption. Government-driven initiatives, alongside enterprise adoption, are helping accelerate the journey.

Shifting strategies and deployment models

Public cloud, including multicloud, remains the top choice for AI deployment. Yet organisations are increasingly exploring private AI and on-premises models to meet needs around security, collaboration and cost efficiency. CIOs are moving away from generic AI models towards specialised solutions, with data security, integrity and infrastructure optimisation ranking high on priority lists.

IDC notes that enterprises are increasingly taking a structured, phased approach to AI. High-impact use cases such as predictive analytics, supply chain optimisation, personalised services and operational automation are being prioritised to deliver measurable outcomes.

Challenges slowing AI scale-up

Scaling AI is not without roadblocks. Rising IT costs, compliance requirements and energy efficiency commitments weigh heavily on enterprises. More than 72 per cent of organisations in APAC highlight the need for AI and data skills when hiring, underlining the talent crunch. Security and privacy risks remain persistent concerns.

Despite these challenges, organisations see strong returns. GenAI is being recognised as a driver of operational efficiency, customer satisfaction and entirely new business models. IDC notes that businesses are relying heavily on external partners, about 60 per cent of AI applications are being built by external developers, compared with 30 per cent in-house and 10 per cent via commercial off-the-shelf solutions.

Sectoral adoption trends

AI is no longer confined to experimental pilots. The report highlights adoption across multiple verticals:

• Banking and financial services: 84 per cent of institutions in APAC already use AI, with 67 per cent deploying GenAI. Fraud detection, anti-money laundering and operational efficiency are key areas.

• Manufacturing: 78 per cent of firms are adopting AI, and 54 per cent are investing in GenAI for predictive maintenance, demand forecasting and smart production lines.

• Energy: 83 per cent of energy companies are using AI, with 73 per cent tapping GenAI for grid optimisation, predictive maintenance and clean energy transitions.

• Healthcare: 86 per cent of healthcare organisations are using AI, with 59 per cent adopting GenAI in diagnostics, treatment planning and patient monitoring.

• Retail: 82 per cent of retailers are leveraging AI, with 63 per cent deploying GenAI for personalised recommendations, fraud analysis and inventory management.

The breadth of adoption is striking, 87.4 per cent of APAC organisations already use more than 10 GenAI use cases, and a quarter expect to surpass 100 use cases by 2025.

Voices from Dell Technologies

“India is fast emerging as a frontrunner in APAC’s AI landscape, with 4 per cent of organisations already leading in adoption,” said Venkat Sitaram, Senior Director & Country Head, Infrastructure Solutions Group Speciality Sales, India, Dell Technologies. “The findings underscore a clear path forward: with the right strategy, scalable infrastructure and expert partnerships, organisations can fast-track AI implementation and unlock measurable outcomes.”

Chris Kelly, Senior Vice President, Infrastructure Solutions Group Speciality Sales, APJC, Dell Technologies, added, “The Asia Pacific region holds immense potential to lead the way in AI adoption and innovation. The journey to consistent ROI is complex and requires comprehensive support across every stage, strategy, data preparation, governance and scaling.”

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