February 19, 2025

IDC Predicts: AI-Powered IAM Adoption in Asia/Pacific* Consumer Companies to Reach Only 25% by 2027

IDC outlines key security and trust predictions, providing guidance on mitigating risks, enhancing compliance, and strengthening resilience in an evolving threat landscape.

SINGAPORE, 20 February 2025 – In the report, IDC FutureScape: Worldwide Security and Trust 2025 Predictions — Asia Pacific (Excluding Japan) Implications, IDC predicts that by 2027, only 25% of consumer-facing companies in Asia/Pacific will use AI-powered Identity and Access Management (IAM) for personalized, secure user experience due to continued difficulties with process integration and cost concerns. While AI-driven IAM enhances security and personalization through adaptive authentication and fraud prevention, slow adoption highlights the need for businesses to address these barriers first to gain a competitive edge in an increasingly digital landscape.

IDC also forecasts that by 2028, 70% of data products will include an AI Bill of Materials (BOM), detailing data collection, edits made, data cleanup, and consent processes to improve transparency. While AI BOMs are critical for enhancing transparency and explainability, data quality and availability issues continue challenging AI development and adoption in Asia/Pacific.

“AI is becoming integral to the security landscape in the Asia/Pacific region, helping organizations tackle regulatory, operational, and sustainability challenges,” says Sakshi Grover, senior research manager, Cybersecurity Products and Services, IDC Asia/Pacific. “In 2025, businesses will move beyond isolated AI projects to fully embedding AI into security strategies. Success will depend on clear accountability frameworks, high-quality data, and adaptable infrastructures to drive real impact. AI is shifting from an experimental tool to a cornerstone of proactive risk management and resilience.”

As businesses in the region brace for significant changes in cybersecurity, regulatory frameworks, and sustainability demands, IDC outlines below some of the other critical predictions that highlight the region’s trajectory toward more secure, compliant, and resilient operations:

DIY Security with AI: By 2027, 30% of businesses in APEJ will support DIY security for developers and line-of-business application owners through AI-enabled automation of security policy generation from natural language commands.

Compliance Audits and AI: By 2025, the same evidentiary requirements that exist for current compliance audits will extend to 80% of AI products, requiring organizations to demonstrate LLM build and exclusion of sensitive data.

Blocking Use of PII: By 2025, several countries in APEJ will adopt a framework allowing individuals to block the use of PII in AI, regulate where that information can geographically be stored, and correct erroneous information.

“To stay ahead of evolving threats, businesses must focus on AI-driven security frameworks, intelligent threat detection, and seamless compliance. Strategic AI integration will not only mitigate risks but also unlock efficiencies and competitive advantages in an increasingly digital world,” ends Grover

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 Security and Trust 2025 Predictions — 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 (APeJ)

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About IDC FutureScapes

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 FutureScapes 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.

Click here to learn about IDC’s full suite of research products and how you can leverage them to grow your business.

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/ap. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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