Artificial intelligence (AI) venture capital investment in the Asia Pacific (APAC) region surged to US$15.4 billion in 2024, according to IDC.
The research firm’s study, Powering the AI Wave: Venture Capital Trends and Strategic Vendor Pathways in Asia/Pacific’s AI Landscape — 2025, identifies growing investor interest in scalable AI solutions and sector-specific innovations, especially technology and healthcare.
AI investment activity was led by the IT sector, where the majority of the deals were flowing into cloud computing, cybersecurity, SaaS platforms, data analytics, and machine learning.
Healthcare also proved to be a quickly growing category for AI investment, with growth facilitated by advancements in diagnostics, drug discovery and personalised medicine.
Geographically, China, South Korea, and Japan received the majority of AI capital in 2024, while India was notable for its focus on scalable software-driven AI innovation.
Record-breaking funding figures notwithstanding, the report observes that more than half of APAC’s digital-native businesses (DNBs) remain mired in the “repeatable” stage of AI maturity, lagging behind North American and European DNBs.
Only 29 percent of these firms have achieved the “optimised” stage, with AI implementations scaled up completely, and there are thus substantial opportunities for technology vendors to provide support for infrastructure, data integration, and automation.
The study finds also a shift in partnership preferences, with 42 percent of the DNBs now seeking strategic co-innovation from vendors. These firms favour partners that offer modular, scalable platforms and local support to meet their unique requirements.
“With a unique blend of tech ambition, government and policy support, and agility of DNBs, Asia/Pacific is emerging as a global epicentre for AI investments. Those that scale responsibly, localise intelligently and partner strategically will be the true winners in this space,” said Supriya Deka, Research Manager of Asia/Pacific Small and Medium-sized Businesses and DNBs at IDC Asia/Pacific.
Entelechy Asia 