But shadow AI risks and job displacement fears also emerge
Adoption of generative AI is growing at a faster rate in Asia-Pacific than the rest of the world, but security risks are emerging as much of the adoption is ungoverned, according to a new report.
Findings from the Boston Consulting Group (BCG) revealed 78% of employees in APAC are now using GenAI, higher than the 72% reported globally.
People in leadership positions recorded the highest adoption rates in APAC, with 84%, while the region's frontline employees are outpacing GenAI use (70%) compared to their global counterparts (51%).
By market, India recorded the highest rate of GenAI adoption, with 92%. It is followed by Indonesia (89%) and then China (87%). Other APAC markets recorded:
- Thailand (85%)
- Australia (84%)
- Singapore (84%)
- Malaysia (79%)
- South Korea (72%)
- Japan (51%)
"Emerging APAC economies such as India, Indonesia, and China lead the way, reflecting a young, ambitious workforce eager to embrace AI as a growth enabler and mobile-first workers leapfrogging managers in everyday AI use," the report stated.
'Ungoverned' GenAI use
Despite the high GenAI adoption rate, the report warned employers about the risk of shadow AI, as 58% of employees said they would use AI tools even if they were not formally provided by their employer.
"Much of AI adoption in APAC is taking place through individual 'shadow,' or informal, AI usage, possibly indicating impatience with hierarchy," the report stated.
"Such ungoverned adoption poses security and non-compliance risks. Although AI is making work more efficient for many, the benefits risk being diluted without appropriate leadership direction."
Job displacement fears
Fears of being displaced by GenAI tools are also getting stronger in APAC markets, according to the report, with 52% admitting to this concern.
More than half of employees (52%) reported concerns about job displacement, higher than 41% of employees globally.
By market, Indonesia recorded the highest level of job displacement fears with 71%. This is followed by South Korea (66%) and Singapore (65%).
Despite seeing the highest adoption rates, India, Indonesia, and China recorded the lowest levels of job displacement concerns across APAC.
Addressing GenAI challenges
The report urged employers to focus on various initiatives to address the rising challenges with GenAI, starting with formalising governance before shadow AI takes over.
"Leaders must establish clear policies, risk controls, and sanctioned platforms to ensure innovation happens safely," the report stated.
It also urged employers to invest in reskilling to sustain the AI advantage, and to turn the high AI adoption rate in the frontlines into impact by redesigning workflows and governance.
"To turn high usage into real impact, companies must close the gap between experimentation and execution," said Jinseok Jang, a BCG managing director and partner, in a statement.
"That means top-down governance, upskilling, and a clear AI narrative that aligns with employee expectations."
