SOUTHEAST ASIA, 02 DECEMBER 2024 – A new report from Avanade shows that mid-market organizations in Asia Pacific are embracing artificial intelligence (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 organizations to achieve sustainable returns. 

The Avanade Trendlines: AI Value Report 2025 draws on insights from 4,100 global business and IT decision-makers. Key findings from the report include: 

• Strong enthusiasm for AI’s potential: 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 business case (48%) or proof of concept (44%) stage.

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

• 95% of leaders are fast-tracking plans to modernize legacy systems.

• 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 organizations in Asia Pacific overcome these business challenges, Avanade has recently introduced seven new AI services that combines Avanade’s industry and technical expertise with Microsoft’s secure, AI-powered platforms and tools. Designed with efficiency and agility in mind, the new services provide enterprise-grade innovation and technology at a scale that suits the size and needs of mid-market organizations. The new services are:

• Accelerate Revenue Generation: This service helps sales teams in mid-market organizations move beyond traditional CRM systems – equipping salespeople with AI-powered sales tools that increase productivity, improve customer engagement, and drive revenue.
• AI-Powered Migration and Modernization: Designed to help mid-market organizations confidently navigate their cloud migration journey to Microsoft Azure, with Avanade providing expert guidance at every stage of the cloud journey. This comprehensive service mitigates business risk, tackles technical debt, optimizes costs, and paves the way for a sustainable, AI-ready digital core. 
• Build and Modernize AI Apps: Designed to help mid-market organizations create innovative and efficient AI-powered apps for specific business needs; transform legacy systems by integrating AI whilst enabling continuous improvement with scalable, flexible architectures; as well as build AI-ready foundations that address data silos and security challenges.
• Drive Business Transformation with Copilot: This service brings together value-based accelerators, industry and functional expertise, and responsible AI methods to help mid-market organizations unlock new sources of value and innovation through Microsoft 365 Copilot, while providing the proper safeguards and controls. 
• Modernize ERP: This service helps mid-market organizations power business growth and adaptability, as well as reduce total cost of ownership, with a modern, AI-led ERP platform that enables new business models and revenue streams, faster time to market and better-informed decision making.
• Unify your Intelligent Data and Analytics Platform: Designed to help mid-market organizations overcome limitations of legacy technology, trust, and data estate complexity to reach AI ambitions; as well as empower employees with better access to data and insights.
• Unify Threat Protection: Designed to help mid-market organizations stay ahead of fast-moving threats and rapidly detect and investigate incidents. This service combines Microsoft Threat Intelligence, Sentinel SIEM, EDR and Security Copilot to enhance analysis and visibility, boost productivity and maximize investments.

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 artificial intelligence (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.

More information about Avanade’s new AI services in Asia Pacific are available here. The full Avanade Trendlines: AI Value Report 2025 is available for download here.