ASIA-PACIFIC (APAC) governments and businesses are expected to continue tapping artificial intelligence (AI) solutions this year to improve their cybersecurity posture and boost efficiency in areas like energy and cloud management, according to software company Hitachi Vantara.
“The region’s rapid urbanization and growing digital economy make it an ideal environment for deploying innovative AI solutions, especially in areas like energy efficiency, hybrid cloud management, and intelligent automation,” Matthew Hardman, chief technology officer for Asia-Pacific at Hitachi Vantara, said in a statement.
“As we look ahead, emerging technologies further enhance AI’s capabilities in APAC, enabling businesses to address localized challenges with unprecedented precision. AI isn’t just a buzzword anymore — it’s a critical driver of sustainability, security, and resilience, helping the region build a future-ready economy.”
Companies in the region have been using AI-powered digital twins or virtual models to optimize energy usage and simulate efficiency improvements before implementation, he said, such as in the case of data centers.
“This approach isn’t just theoretical; retrofitting existing data centers with these technologies is already reducing power consumption to be more energy efficient,” he said.
This comes as Southeast Asia’s data center market is projected to grow by over 5% annually through 2029 to $14.41 billion in value, according to Statista.
The Philippines has also been cited as a potential market for data centers, as 73.6% of its population are internet users, according to digital platform Datareportal.
“This shift will have a massive impact on both sustainability and cost savings,” Mr. Hardman said.
He also noted the rapid adoption of hybrid cloud architectures among Asia-Pacific firms, with businesses looking to balance the flexibility of using public cloud technologies with ensuring the security of their on-site infrastructure.
Using AI-driven management tools along with container orchestration systems allows firms to deploy applications while maintaining data sovereignty, he said.
“As the demand for massive data volumes to train AI grows exponentially, organizations must rethink traditional storage architectures. Object storage solutions accessible via industry-standard protocols provide scalable, cost-effective platforms for managing large-scale data compared to traditional block storage systems,” Mr. Hardman said.
AI solutions are also helping Asia-Pacific governments and firms boost their cybersecurity posture, he added.
“When it comes to cybersecurity, AI is playing a pivotal role in combating rising threats. Advanced threat detection systems using anomaly detection models are enabling real-time responses to cyberattacks, while generative AI (GenAI) is helping businesses simulate threat scenarios to strengthen their defenses. As regulations like Singapore’s Model AI Governance Framework and Indonesia’s data sovereignty laws take hold, AI-powered compliance tools are helping organizations navigate these complexities while safeguarding their operations.”
Meanwhile, AI-driven smart grid technologies are also expected to improve energy management in the region, Mr. Hardman said.
“By integrating machine learning models into grid operations, governments and utility providers can optimize energy distribution, predict demand fluctuations, and seamlessly incorporate renewable sources like solar and wind,” he added.
Small and medium enterprises (SMEs) in Asia-Pacific are also benefiting from AI solutions, Mr. Hardman said.
“From automating customer service with multilingual small language models to optimizing inventory management with predictive analytics, SMEs are leveraging AI to compete at scale.”
The Philippines has about 1.2 million micro, small and medium enterprises, accounting for more than 99% of total businesses, government data showed.
A recent IBM study showed that the Philippines still experiences challenges with AI, with 43% reporting limited use cases, 40% difficulty in integration and scaling, and 37% lacking an AI strategy.
It said that 23% of AI investments by businesses in the Philippines this year will focus on customer experience, 18% on back-office business process automation, and 17% on employee experience and productivity.
Meanwhile, a survey conducted by PwC Philippines in partnership with the Management Association of the Philippines showed that 40% of CEOs in the country said that they have already adopted GenAI.
The survey said 71% of CEOs believe that GenAI will change how their companies create, deliver, and capture value. — B.M.D. Cruz
