Village Connect
Artificial intelligence is rapidly becoming an essential part of business operations across Asia-Pacific, but a new study by Avanade reveals that many organizations have yet to unlock its full transformative potential.
According to Avanade’s Build Beyond Limits: AI Reality Report, 79% of Asia-Pacific respondents believe their organizations are investing too heavily in small operational improvements rather than pursuing opportunities that could fundamentally change how businesses operate.
The findings highlight a growing challenge for companies embracing AI: adopting advanced technology does not automatically translate into meaningful business transformation.
Confidence in AI Continues to Grow
The research surveyed 3,600 business decision-makers across 11 markets worldwide, including 1,400 respondents from Asia-Pacific.
In the region, 76% of respondents described their organizations as established, advanced, or AI-first, while 73% expressed strong confidence in their teams’ ability to use AI effectively.
However, only 17% reported fundamentally redesigning how their teams operate around AI capabilities.
The results suggest that while businesses are increasingly comfortable using AI tools, many continue applying them to existing processes rather than developing entirely new ways of working.
Measuring Financial Returns Remains a Challenge
Beyond implementation, the study identified significant gaps in financial accountability.
Approximately 68% of APAC respondents acknowledged that their organizations had not formally calculated AI investment returns and submitted those findings for review by finance teams or senior leadership.
Meanwhile, only 43% reported using business-value and return-on-investment targets to evaluate AI progress.
Another 76% agreed that their organizations publicly portrayed themselves as more advanced in AI adoption than they actually were.
These findings raise questions about whether businesses are measuring genuine results or simply tracking the number of AI tools and projects introduced.
Moving Beyond Productivity Improvements
Avanade CEO Chris Howarth emphasized that organizations must look beyond conventional efficiency gains to discover AI’s broader business potential.
“AI is no longer a purely technological conversation, it’s a transformative one,” Howarth said.
He cited Avanade’s work with Thomson Reuters on Reuters Imagen as an example of how rethinking workflows around AI can create new opportunities for business value.
Avanade Chief AI Officer Ben Beath similarly warned against confusing technological activity with meaningful progress.
“Too many organizations are measuring AI progress by activity rather than impact,” Beath said.
He explained that deploying tools, conducting pilot programs, and improving productivity are important steps, but businesses must ultimately transform decision-making, workflows, and value creation.
A Strategic Opportunity for Asia-Pacific
Bhavya Kapoor, President of Avanade Asia Pacific, stressed that organizations must distinguish between investments designed to improve existing operations and those intended to transform their business models.
Both approaches can deliver benefits, but each requires clear objectives, accountability, and appropriate performance measurements.
For companies pursuing transformation, Kapoor emphasized redesigning responsibilities, workflows, and decision-making processes while establishing clear ownership of results.
Building the Future of AI-Driven Business
Conducted by independent research specialist Vanson Bourne in August and September 2026, the study covered organizations generating more than $500 million in annual global revenue across major industries.
As AI adoption accelerates, Avanade’s findings deliver a timely message to business leaders: technological advancement alone is insufficient.
The next stage of AI development will depend on how effectively organizations translate innovation into measurable financial returns, stronger business capabilities, and lasting competitive advantages.
For Asia-Pacific businesses, the challenge is no longer simply adopting artificial intelligence, but using it to redefine what their organizations can achieve.
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