Asia-Pacific’s advanced economies lag their less developed peers in AI take-up, Deloitte survey finds

Tan KW

Publish date: Tue, 14 May 2024, 04:36 PM

Developing economies in Asia-Pacific are putting generative AI (gen AI) to use at a greater pace than their more advanced neighbours, according to a recent study by Deloitte.

China, India, and South-East Asia have a 30% higher share of gen AI users compared to Japan, Taiwan (China), Singapore, South Korea, Australia, and New Zealand.

Employees from developing economies are also embracing AI with more enthusiasm, reflecting populations that have a greater percentage of “digitally native” people, according to the report.

The study, undertaken in February and March by Deloitte Access Economics, surveyed almost 3,000 university students and about 9,000 employees across 13 locations in the Asia-Pacific region.

Though the rapid adoption of AI will not directly eliminate jobs, the impact will be felt by businesses that fail to adapt, warned Chris Lewin, AI and data capability leader at Deloitte Asia-Pacific.

“Their employees, and in particular talent new to the workforce, will be drawn to rival businesses offering AI applications that are capable of redrawing the future of modern work,” he said.

AI language models are particularly useful in Asia-Pacific because it is one of the most linguistically diverse areas in the world, with more than 3,000 documented languages, said Kho Wei Any, senior manager, cognitive strategy and growth innovation, at Deloitte South-East Asia.

The study found that CEOs and senior leaders must not only think about incorporating gen AI into their businesses to become more efficient, but also rethink processes to ensure they can adapt with the AI boom rather than be disrupted by it.

“Gen AI is being increasingly used to translate text or speech, helping to break down language barriers and connect people and businesses across the globe,” it said.

Using gen AI saved each user almost a day per week and freed up time to learn new skills, the study found.

However, just because an individual employee is more likely to use gen AI or is using it more frequently does not mean they are getting the most out of the technology.

Only half of employees surveyed believed they were fully leveraging the potential of gen AI. Taking action to increase their understanding of AI - for example, by researching and experimenting with applications - meant users were more likely to feel they were optimising their use of the technology at work.

The finance, ICT, media, professional services, and education industries in the Asia-Pacific region are likely to undergo significant transformation because of the rise of gen AI. These sectors account for about a fifth of the region’s economic output.

Developed economies in the region face the challenge of lagging behind in gen AI adoption, while also having more workers in industries that could soon be disrupted by it.

Meanwhile, developing economies are more eagerly embracing and learning to use the technology, leveraging gen AI not to cut labour costs but to improve productivity and make the most of human potential.

Adopting gen AI also increased the level of satisfaction at work and in study, the report found.

Younger workers were twice as likely to have used gen AI than their mid-career counterparts, while four in five university students are using it. AI is also playing a part in how students map their future, with 60% of them saying it influenced the career choices they are making.

- SCMP

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