Kuala Lumpur, Malaysia, 6 March 2025 – The shift towards AI investments in Asia Pacific (AP) and ASEAN+ has accelerated, with organizations significantly increasing AI spending by 3.3x in AP and 2.7x in ASEAN+1, according to Lenovo’s CIO Playbook 2025 – It’s Time for AI-nomics. The third edition of this report, commissioned by Lenovo and based on a global IDC survey of 2,900+ respondents, reveals key trends in AI adoption, infrastructure choices, and the challenges organizations face.

Early Stages of AI Adoption in ASEAN+

Despite rising investments in AI, adoption remains in the early stages across ASEAN+, with 47% of organizations either evaluating or planning AI implementation within the next 12 months. This figure lags behind AP (56%) and global (49%) averages. The key barrier to faster adoption is the challenge of demonstrating ROI. However, businesses are optimistic, expecting a 3.6x ROI on AI projects in AP. ASEAN+ organizations, while progressing more gradually, are focused on supply chain optimization, regulatory compliance, and improving productivity—addressing hurdles such as data management, AI expertise, and security concerns.

Governance, Risk, and Compliance (GRC) Remains a Key Challenge

Governance, Risk, and Compliance (GRC) have emerged as the top priority for CIOs in AP, jumping 12 spots in the rankings. Despite its growing importance, implementation remains slow. Globally, only 24% of organizations have fully implemented AI GRC policies, and ASEAN+ aligns with this trend, with 24% of CIOs reporting full AI GRC adoption. As ethical concerns and AI risks such as biases remain top priorities, businesses are increasingly aware of the need for structured, responsible AI governance to ensure transparency, accountability, and security in AI operations.

Lenovo’s Sumir Bhatia, President of Asia Pacific Infrastructure Solutions Group, commented, “Governance, risk, and compliance have emerged as the #1 priority for businesses in 2025, reflecting the heightened focus on secure and responsible AI. We’re committed to making AI accessible, ethical, and impactful for businesses of all sizes.”

GenAI Adoption Gaining Momentum

Generative AI (GenAI) adoption is set to revolutionize enterprise workflows, with ASEAN+ earmarking 42% of AI spending in 2025 for GenAI initiatives. IT Operations is the leading use case in AP, while in ASEAN+, Customer Service takes precedence. Cybersecurity and software development are also top priorities in AP, while IT Operations and Engineering/R&D lead in ASEAN+. This shift towards GenAI indicates a broader trend of AI-driven innovation across industries.

Hybrid and On-Premise Infrastructures Lead in AI Deployments

The report highlights that 65% of AP organizations are opting for hybrid or on-premise infrastructures to support AI workloads, driven by the need for security, low latency, and operational flexibility. ASEAN+ is ahead of the global curve, with 68% of organizations in the region preferring hybrid or on-premise solutions, compared to 63% globally. These preferences reflect the growing demand for secure, scalable AI infrastructure.

Varinderjit Singh, General Manager of Lenovo Malaysia, stated, “Hybrid infrastructures offer the perfect balance—flexibility and control. ASEAN+ is leading the way in adopting these solutions, demonstrating a clear focus on driving innovation while maintaining security and compliance for AI’s unique demands.”

AI-Powered PCs and the Need for Skilled Partnerships

AI-powered PCs are gaining traction in AP, with 43% of organizations seeing substantial productivity gains. However, adoption remains slow across various markets. In ASEAN+, 65% of organizations are in the planning stage for AI-powered PC adoption, signaling that as the technology matures, the adoption curve will accelerate, leading to more digital workplace solutions.

To scale their AI efforts, 34% of AP CIOs and 44% of ASEAN+ CIOs are leveraging professional AI services to navigate complexities in data management and talent shortages. An additional 56% of ASEAN+ CIOs are planning to engage these services in the near future. These partnerships are crucial for bridging internal capability gaps and enabling businesses to upskill teams and build long-term AI resilience.

Fan Ho, Executive Director and General Manager of Lenovo Asia Pacific’s Solutions and Services Group, emphasized, “AI adoption goes beyond short-term gains; it’s about designing, deploying, and integrating AI solutions effectively. Services like Lenovo’s AI Fast Start are helping organizations pilot, optimize, and scale AI initiatives with expert guidance, accelerating the adoption process.”

As AI adoption continues to grow across ASEAN+ and Asia Pacific, businesses are focusing on scaling infrastructure, implementing robust governance frameworks, and leveraging AI services to overcome operational challenges and drive long-term success in the AI era.