APAC mid-market companies expect 4x returns from AI

Source: Avanade Trendlines: AI Value Report 2025. About a third of respondents in Australia, are very concerned about human achievements being attributed to AI, whereas roughly a quarter of Japanese respondents say the same.

A new report* from Avanade has shown that mid-market organisations in Asia Pacific are embracing AI with confidence, with most anticipating up to fourfold returns within 12 months. However, gaps in workforce readiness, data governance, and technology infrastructure are key obstacles for mid-market organisations in achieving sustainable returns.

Highlights form the Avanade Trendlines: AI Value Report 2025 include:

· Strong enthusiasm for AI’s potential: The top goal for 2025 is the use of AI tools, like Microsoft Copilot, to drive new revenue while building a collaborative workplace culture.

· Increased budgets: 87% expect to increase their budgets for generative AI projects by up to 50%.

· Urgency from competitive pressures: 85% expressed concern over losing competitive advantage without rapid AI adoption, hence fast-tracking implementation is a top priority.

· Essential AI groundwork still to be done: Nearly half are stuck at the business case (48%) or proof of concept (44%) stage.

The report also underscores pressing concerns around technology infrastructure and data security:

· Nearly all (95%) leaders are fast-tracking plans to modernise legacy systems.

· Three quarters (76%) state that poor data quality and governance inhibits AI progress.

· With 94% citing sensitive data protection as critical, companies are stepping up investments in data governance – with 44% planning to implement new data platforms and 41% setting governance standards.

· To support the scaling of AI, budgets will focus on data and analytics platforms (27%), automation (17%), as well as security and cyber resilience (15%).

To help mid-market organisations in Asia Pacific overcome these business challenges, Avanade recently introduced seven new AI services that combine Avanade’s industry and technical expertise with Microsoft’s secure AI-powered platforms and tools. 

Bhavya Kapoor, Avanade’s President for Asia Pacific, said: “Asia Pacific is a dynamic economic region with its present and future success underpinned by factors such as diverse demographics, regional collaboration, and tremendous potential for high growth. Coupled with rapid advancement in AI and the region’s appetite for innovation, mid-market companies in Asia Pacific are at a pivotal juncture of their growth and transformation.”

“With the right partnership and strategic guidance, mid-market companies can leverage technologies like AI to unleash their potential and emerge as the next generation of market leaders and industry titans,” Kapoor added.

The Avanade Trendlines: AI Value Report 2025 is available for download here.

*Avanade commissioned independent market research firms McGuire Research Services and Vanson Bourne to undertake research to understand the mid-market’s experience in developing and implementing AI solutions and emerging technologies.

Across the two separate research projects, a total of 4,100 IT decision makers and senior business decision makers outside of IT were interviewed in August and September 2024, across Australia, Brazil, France, Germany, Italy, Japan, Netherlands, Spain, UK, and US. Respondents worked for organisations with between US$500 M and US$5 B global annual revenue in these industries: banking, consumer goods and Services, energy, government, healthcare, Life Sciences, manufacturing, non-profit, and retail.

The interviews were conducted online and were undertaken using a multilevel screening process to ensure that only suitable candidates were given the opportunity to participate.