Asia Pacific’s ambitions to lead in artificial intelligence are being challenged by outdated network infrastructure, according to a new IDC InfoBrief commissioned by Expereo. The study, titled Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility, reveals that while AI strategies are gaining momentum in the region, current connectivity is proving to be a major barrier to progress.
Growing demand for improved network capabilities
The report draws on insights from 650 technology leaders across Asia Pacific, Europe, and the United States, and finds that networking and connectivity have emerged as top technology priorities in APAC. Around 43% of organisations in the region plan to increase their investment in this area over the next 12 months, highlighting a shift in focus toward more resilient and agile networks.
This growing investment signals a widespread recognition that robust network infrastructure is essential to the success of AI initiatives. As AI workloads become more complex and data-intensive, organisations are beginning to realise that outdated networks are unable to keep up with the pace of innovation.
Despite this recognition, the report highlights a critical shortfall: 94% of companies surveyed said their current networks restrict their ability to run large-scale data and AI projects. This mismatch between ambition and capability is slowing down digital transformation and placing companies at risk of falling behind competitors.
AI adoption hindered by poor network performance
The inability of existing networks to support AI is causing considerable concern among business leaders. Many report that their infrastructure lacks the flexibility, performance, and capacity needed for data-heavy applications. The result is a bottleneck that leads to lower productivity, increased operational costs, and lost opportunities.
Eric Wong, President of Asia Pacific at Expereo, explains: “This prioritisation of networking reflects a critical shift in perspective. APAC businesses understand that AI success depends on the ability to move data, connect systems, and deliver applications with speed and reliability. With 9 out of 10 companies in APAC see their networks as a limiting factor, organizations must embrace more dynamic and agile solutions that can adapt to the evolving demands of AI. APAC has the ambition to lead in AI, but network infrastructure is the key to unlocking that potential. Organizations that prioritise network modernisation will lead in the AI-driven future.”
The report also found that half of the surveyed companies are experiencing financial losses due to unreliable and outdated networks. In an environment where AI-driven applications are critical to business operations, any form of downtime can lead to substantial revenue losses, reputational damage, and a decline in customer confidence.
Partnering and sustainability seen as part of the solution
With network transformation becoming more complex and the shortage of in-house talent growing, organisations are increasingly turning to external partners. Managed service providers are now playing a central role in helping businesses upgrade their network infrastructure and implement solutions tailored to AI-driven environments.
This reliance on specialist partners reflects the need for faster deployment, ongoing optimisation, and round-the-clock support—capabilities that many organisations cannot manage internally.
Sustainability also emerges as a key factor in network planning. APAC organisations are under pressure to meet environmental goals, and improving network efficiency can contribute to this. Modernised infrastructure can reduce energy consumption, lower carbon emissions, and support wider sustainability initiatives, helping companies balance growth with environmental responsibility.
The IDC InfoBrief makes it clear that while APAC businesses are eager to embrace AI, success will depend on their willingness to modernise network infrastructure. Without this, the region risks falling short of its digital ambitions.
