IDC highlights key predictions that AI and automation will redefine retail in Asia/Pacific excluding Japan (APeJ)
SINGAPORE, 20 February 2025 – According to the report IDC FutureScape: Worldwide Retail Predictions 2025 — Asia/Pacific (Excluding Japan) Implications, by 2027 50% of Asia/Pacific retailers will leverage GenAI-enabled content creation and delivery for dynamic product content, boosting conversion rates, and cutting content management costs by 30%. Generative AI is expected to drive efficiency, personalization and business growth.
As retailers integrate GenAI into their content strategies, key considerations include ensuring data accuracy, seamless system integration, and adherence to brand identity and local market nuances. With AI-driven content creation becoming a strategic advantage, Asia/Pacific retailers are poised to set new benchmarks in digital engagement and operational efficiency.
The Asia/Pacific retail market is transforming significantly, driven by economic recovery, shifting consumer behaviors, and rapid digitalization. IDC’s 2024 Global Retail Survey data highlights growing retailer optimism, fueling technology investments to enhance employee experience, streamline operations, and improve data utilization. These efforts aim to improve agility and resilience, enabling organizations to navigate market changes and disruptions.
AI and GenAI are transforming the retail industry, reshaping customer engagement, operations, and supply chains. IDC highlights other AI-driven predictions set to redefine the retail landscape, offering unprecedented opportunities for personalization, efficiency, and growth:
Flexible, cross-compatible models: By 2026, 90% of retail tools will embed AI algorithms. Over 30% of these algorithms will use standalone AI or modular, agnostic AI models that can be swapped out for suitable retail-specific models.
Intelligent rewards systems: By 2027, 50% of APeJ retailers will implement AI-driven loyalty applications, improving contextualized offers by 40%, and boosting customer engagement to drive up to a 25% increase in customer retention rates.
Streamlined labor costs: By 2026, 40% of APeJ retailers will have reduced workforce costs by 2% with embedded GenAI in fundamental business processes and tasks across business operations at corporate and in stores
As Asia/Pacific retail continues to evolve, the integration of AI is set to reshape the industry significantly. GenAI is unlocking new opportunities by automating content generation, reducing operational costs, and delivering more relevant product information across digital and physical channels. This report also reveals that retail tools across the region will increasingly embed AI algorithms, with one-third of these utilizing standalone or modular, agnostic AI models. This flexibility allows retailers to swap out generic models for specific retail applications, enhancing interoperability across diverse systems without necessitating deep integration.
“As we navigate the digital transformation of retail in Asia/Pacific, it is clear that AI will be at the forefront of this evolution,” said Vijay Sarathi Gollapalli, research manager, Retail Technology Strategies Research Program, IDC Asia/Pacific. “The ability to adapt AI tools for specific retail needs while optimizing costs will be essential for retailers aiming to thrive in this competitive landscape.”
Each year, IDC releases its top technology predictions at worldwide, regional and country levels through its IDC FutureScape Reports and offers strategic and data-driven insights into what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.
Catch an on-demand replay of IDC’s 2025 Predictions presentations on AI Everywhere Playbook, Building an AI-Fueled Business, Unblocking AI Everywhere Blockers, and Mapping Growth Opportunities in an AI Everywhere Era by registering here .
Asia/Pacific Excluding Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Retail Predictions 2025 — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation here .
For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
*Asia/Pacific excluding Japan
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About IDC FutureScape
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScape reports are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.