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Tuesday, 5 November 2024

AI, low-code combining to accelerate APAC application development

As businesses across the Asia-Pacific region (APAC) demand faster application development to keep pace with digitalisation, AI-powered low-code solutions are enabling organisations to drive innovation and greater productivity. This is highlighted in a new IDC InfoBrief titled Mission-Critical Software, Delivered: Harnessing the Synergy of Low Code and GenAI, sponsored by OutSystems.

The research shows that over 60% of applications in APAC are legacy systems, posing hurdles like rigid architectures and high maintenance costs. The skills shortage exacerbates these issues, and modernising these systems remains a priority for enterprises. However, outdated
frameworks and low developer productivity often hinder progress. 

To overcome these obstacles, 68% of APAC enterprises are turning to modern development tools—including low code, integrated development environments (IDEs), and DevOps. While low-code platforms can streamline software development by enabling faster application creation with minimal coding, AI-powered low-code solutions take this a step further by automating complex processes and delivering intelligent insights, which boost efficiency and spark innovation. 

As a result, 25% of APAC enterprises are now prioritising the integration of generative AI (gen AI) into developer tools to drive more intelligent application development. This trend is consistent across APAC. with a notable uptake in Australia (25%), India (24%), Japan (26%), and Southeast Asia (23%).

“We are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between gen AI and low code,” said Mark Weaser, VP, APAC at OutSystems. 

“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 that by 2026, 40% of net-new applications in APAC will be intelligent apps, which incorporate gen AI to elevate existing user experiences and unlock new use cases. The top impact areas of gen AI in software development and design include increased productivity (61%), high value development tasks/creativity (50%), and accelerated developer velocity (40%).

Additional findings 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, 30% of APAC enterprises are willing to pay a premium of 11-20% for gen AI features integrated into app development environments.

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

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

Low-code adoption continues to accelerate across APAC, with one-third (33%) of enterprises recognising it as a critical tool for driving automation and future-proofing their businesses. This trend is not limited to the APAC region – IDC predicts that by 2025, more than 60% of enterprises globally will adopt low-code technologies to enable faster application delivery and improve operational efficiency.

By region, Southeast Asia and Hong Kong lead APAC respectively with 49% of enterprises prioritising low code for automation solutions, followed by India (35%) and Australia (31%). These figures point to a continued recognition of low code's strategic value in driving competitive advantage within a disruptive landscape, especially as businesses face demands to deliver apps and innovate more efficiently amidst economic uncertainty and a shortage of skilled developers.

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

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

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Review the InfoBrief at https://www.outsystems.com/1/low-code-generative-ai/

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