Enterprises across Asia Pacific are accelerating their shift from AI experimentation to execution, with 96% of organizations planning to increase AI investments over the next 12 months, according to the 4th edition of the Lenovo CIO Playbook 2026 – The Race for Enterprise AI, commissioned by Lenovo with insights from IDC. On average, organizations expect AI spending to grow by 15%, spanning GenAI and Agentic AI, public cloud AI services, on-prem AI infrastructure, and AI security tools.
India stands out in AP, with 99% of organizations planning to increase AI investments over the next 12 months and the highest average year-on-year budget growth in the region at 19%. These investments prioritize deploying and supporting AI infrastructure, internal AI training including non-IT staff, and generative AI development and applications, followed by AI devices and AI security, trust and transparency tools – underscoring AI as a core enabler of enterprise efficiency, resilience, and growth.
“When 96% of organizations across AP are planning a 15% on average increase in AI investment, it tells us that AI decisions are now being made at the core of enterprise strategy,” said Sumir Bhatia, President, Asia Pacific, ISG, Lenovo. “The differentiator will be how effectively organizations integrate AI, embedding it into infrastructure, operations, and security so value compounds over time.”
As AI becomes increasingly embedded into enterprise strategy, driving revenue growth, improving profitability, and enhancing business & customer experience have emerged as the top three business priorities for CIOs in Asia Pacific.
From ROI Validation to Outcomes-Led AI
Building on last year’s AI-nomics focus on validating returns and business cases, the 2026 Playbook highlights a decisive shift toward outcomes-led AI adoption. CIOs remain confident in AI’s value, but are applying greater rigor to ensure investments translate into sustained impact.
88% of AP organizations expect a positive ROI from AI in 2026, with an average anticipated return of 2.8x (US$2.85 for every US$1 invested). Yet, scaling AI beyond pilots remains a key challenge, reinforcing the importance of governance, operating models, and lifecycle management.
AI Adoption Expands Beyond IT
AI adoption across Asia Pacific continues to accelerate and is no longer confined to IT. 66% of organizations are already piloting or systematically adopting AI, while 15% remain in early stages and 19% are considering adoption.
In India, 59% are already piloting or systematically adopting AI, with 19% in early stages and 23% considering adoption, highlighting sustained interest and a strong pipeline for broader deployment.
AI is increasingly being deployed across customer service, marketing, operations, finance, and industry-specific lines of business, reshaping how enterprises operate and compete. Notably, half of surveyed organizations report that non-IT departments are now funding AI initiatives, elevating the CIO’s role as an enterprise-wide orchestrator.
Agentic AI Emerges as the Next Enterprise Opportunity
Interest in Agentic AI is expected to double over the next 12 months. today, 21% of Asia Pacific organizations report significant usage, 59% are exploring or planning limited deployments, particularly across telecommunications, healthcare, and government, where operational complexity and scale are highest.
Despite growing interest, readiness remains uneven. Only 10% of organizations consider themselves ready for scaled Agentic AI implementation, with 41% requiring more than 12 months to meaningfully scale. Security, governance, data quality, and integration complexity remain key barriers.
- AI inferencing becomes the value engine – Over a model’s lifecycle, inferencing costs can be up to 15 times higher than training. By 2030, 75% of AI compute will be dedicated to inferencing, with 80% of enterprises relying on distributed edge infrastructure.
- Employee productivity rises as a strategic priority – Deploying AI devices to enhance productivity & local inferencing has climbed to the #2 IT Investment priority, alongside growing adoption of AI PCs, with 50% of enterprise PC purchases expected to shift to models with on-device AI agents.Scaling AI remains the defining challenge – While 88% of organizations expect positive ROI, only around half of AI proof-of-concepts reach production, making scale – not ambition – the critical gap.
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