TECHNOLOGY | AI

Andrea Guerzoni EY Global Vice Chair for Strategy and Transactions he says . “ This is despite risks associated with the ‘ fragmentation of AI ’ between China and western countries , with China developing its own independent ecosystems .”

The region is on the rise – a fact backed up by the EY survey that shows the top five destinations companies are considering locating are China , Australia , India , Japan , and Singapore . Guerzoni is not surprised .

“ In the last decade , the large and increasingly affluent population has grown , which translates to a huge consumer market ,” he says . “ APAC also has a young and skilled workforce which still has a relatively low-cost base for highly educated and dynamic talent .

“ The region continues to show strong growth prospects and high digital adoption where countries like China , Japan , and Singapore are at the forefront of digital innovation , offering a vibrant ecosystem for businesses . It also still plays a critical role in global supply chains , so the region ’ s attractiveness and importance cannot be understated .”

With its vast and diverse population , the APAC region also offers large data sets that can be used to train and refine Gen AI models . This diversity can help in developing more robust and region-aware AI systems .

It ’ s not all positive news for APAC , however . Stagnant global growth , economic and geopolitical risks and the higher cost of capital are weighing on APAC deal sentiment .

Overall , the appetite to pursue transactions remains robust , with 84 % of APAC CEOs looking to M & A , divestments or joint ventures to gain the capabilities required to fast-track their growth ambitions .

114 December 2023