Press FAQ

Publication date: 19 Aug 2024

IDC: Data Security Leads GenAI Investment Concerns in Asia/Pacific

Contact

For more information, contact:

IDC: Organizations prioritize data security in software providers due to the sensitive data involved and the risks associated with GenAI

SINGAPORE, 20 August 2024 – As the Asia/Pacific region rapidly embraces Generative AI (GenAI) technologies, security, trust, and governance have emerged as critical concerns that could either propel or hinder their widespread adoption. In the recent report, C2G: Security and Trust in the GenAI World, IDC delves into these critical issues, offering insights and recommendations for businesses in China and AP aiming to harness the full potential of GenAI while ensuring data integrity and system security.

As CIOs contend with supply chain disruptions and technology funding issues, approximately 45% emphasize security as their primary concern for GenAI initiatives, highlighting the critical need to ensure data and system integrity amidst these challenges. IDC research shows that over 34% of organizations in AP plan to significantly invest in GenAI initiatives within the next 12 to 18 months. This surge in GenAI investments is driven by its potential to revolutionize various sectors, from enhancing cybersecurity measures to automating compliance monitoring and improving risk management. Notably, more than 96% of enterprises in the region are integrating GenAI into their security functions, leveraging its capabilities to sift through vast data volumes, identify emerging threats, and respond to security incidents in real time. Organizations prioritize data security when selecting software providers for GenAI due to the sensitive data involved. The associated risks make robust protection a top concern.

"As GenAI initiatives evolve, data trust becomes the key to driving successful outcomes," Says Deepika Giri, Head of Research, Big Data & AI, IDC Asia/Pacific. "Simple productivity applications may not require extensive first-party data, making them easier to implement. However, as use cases become deeper and more specialized, such as in customer experience, the need for trusted, high-quality first-party data becomes the single biggest determinant of success, given that technology is uniform."

However, along with data security and trust, the complexity of AI algorithms further complicates matters, raising concerns about fairness and reliability. To address these issues, organizations must prioritize cybersecurity, involving technology, processes, and people, to safeguard their assets and ensure business continuity.

The IDC presentation highlights several key points:

  • The importance of preparing for AI-ready trust and security, as only 22.4% of organizations feel adequately prepared in this regard. It emphasizes the need for comprehensive guidance to technology buyers on developing secure and ethically sound AI solutions.
  • A strong preference for on-premises hosting of GenAI solutions among most organizations in the region reflecting a cautious approach towards data deployment, driven by cybersecurity and resilience considerations.

The report provides guidance for vendors in China, emphasizing enhancing innovation with transparency to overcome perceptions of being inexpensive and privacy-invasive. It prioritizes integrating robust security and interoperability into solutions tailored to Southeast Asia's diverse markets. Additionally, it recommends developing specialized GenAI solutions aligned with local regulatory frameworks and fostering strategic partnerships in government sectors for effective deployment.

This IDC Market Presentation, C2G: Security and Trust in the GenAI World (Doc# AP51601124), provides an overview of the current state and future prospects of GenAI adoption in the AP region including China. It highlights the critical role of security, trust, and governance in enabling organizations to leverage GenAI technologies effectively. As businesses navigate the complexities of GenAI implementation, prioritizing these aspects will be crucial in unlocking the transformative potential of AI while safeguarding against emerging cyber threats.

For more information on this IDC Market Presentation, please contact Deepika Giri at dgiri@idc.com. For media inquiries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon at mcarreon@idc.com.

-Ends-

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



Coverage


Regions Covered

Asia Pacific


Topics Covered