IDC

Intelligent XO With Agentic AI

IDC’s 2024 Customer Experience Management Strategies survey found that businesses globally have shifted to a focus on improving the effectiveness of their customer experience (CX) investments while driving profitable revenue growth. IDC finds that C-suite priorities for customer experience are squarely focused on optimizing experience delivery, making experience consumption easy, and achieving experiential value parity. But achieving these directives requires organizations to rethink experience delivery as greater than just the sum of multi-channel, front-office interactions. When done right, IDC research shows that unified CX can lead to higher customer retention, improved advocacy and ultimately profitable revenue growth. What does it mean to orchestrate unified experiences across the full lifecycle of customer outcomes? IDC’s 2024 CX Path survey found that improving scale and consistency for orchestrating experiences across the enterprise was the #1 business driver for companies implementing customer experience orchestration solutions. To negotiate the complexity across channels, touchpoints, journeys, and systems/applications across functions, that deliver value-based outcomes based on changing customer context at every moment, organizations must adopt a multi-layered approach to CX delivery across all organizational layers, including middle and back-office functions. This involves integrating systems of record, insights, control, and engagement to ensure seamless and consistent customer interactions. Systems of Record Organizations need to address data fragmentation by unifying customer and operational data. This integration is crucial for scalable AI workloads and deeper customer insights. IDC’s 2024 CXMS survey found that only about 24% of organizations have access to a single source of customer data with full integration across the stack. By pooling data from front-office and back-office functions, companies can create a comprehensive view of the customer journey. Systems of Insights A cohesive fabric of customer insights is essential. Organizations should combine structured and unstructured data to generate actionable customer intelligence. Sharing and integrating these insights into daily operations can significantly improve customer engagement and business outcomes. Systems of Control The orchestration layer acts as the connective tissue, integrating various systems and ensuring real-time, context-aware customer engagement. This layer leverages AI and automation to manage workflows, business logic, and customer interactions, enhancing decision-making across the organization. Systems of Engagement This layer includes, but is not limited to, the various customer engagement channels across digital, physical, and blended, employee-facing tools and platforms that may be either exclusive or shared by both employees and customers, and various engagement channels through which 3rd parties engage with the brand. Organizations that isolate experience delivery to one stakeholder group will ultimately get left behind. Where do AI Agents and Agentic systems fit into intelligent experience orchestration? AI Agents are a route to deliver greater sophistication for unified experience orchestration. Data and computing power advancements and the availability of advanced reasoning models are driving more sophisticated, more advanced Agentic AI capabilities. Core characteristics of AI Agents make them optimally suited to address the gaps organizations must fill in order to deliver unified intelligent experience orchestration. AI Agents all share the following core characteristics: Planning: AI agents can plan and sequence actions to achieve specific goals. Empowers Al to break down complex tasks into manageable steps, developing structured approaches to problem-solving. The integration of LLMs has revolutionized their planning capabilities. Perception: AI agents can perceive and process information from their environment, to make them more interactive and context aware. This information includes visual, auditory, and other sensory data. Tool usage: Advanced AI agents can use various tools, such as code execution, search, and computation capabilities, to perform tasks effectively. AI agents often use tools through function calling. Multi-Agent Collaboration: Facilitates multiple Al agents working together, each with specialized roles, to tackle complex problems more effectively. Memory: AI agents have the ability to remember past interactions (tool usage and perception) and behaviors (tool usage and planning). They store these experiences and even perform self-reflection to inform future actions. This memory component allows for continuity and improvement in agent performance over time. This enables AI Agents to create a new layer of ‘intelligent actions’ on top of CX and business applications. AI Agents consume and hand off customer and operational data, insights, tasks, across systems, workstreams, processes, and business functions, in a continuous, context-aware, manner. A system of AI agents essentially functions as the glue / connective tissue that connects organizational functions, systems/applications (customer-facing, operational systems, and employee tools), and data. This offers organizations the needed automation and scale for seamless vertical integration through the multiple layers for unified experience orchestration. With 35% of enterprises reporting that fulfillment aspects of the customer journey don’t extend beyond front-office processes, enterprises face a significant gap in orchestrating and delivering whole journey customer experiences. Agentic AI presents an equally significant opportunity to unlock machine scale, beyond just productivity gains to improve connectedness across the entire CX ecosystem with intelligence at the core. AI Agents can even bridge gaps in the fragmented technology landscape at many organizations. However, harnessing value from Agentic AI for CX will require enterprises to address long-standing, foundational challenges such as customer and operational data integrity, unification, and governance, AI governance, and customer privacy/security. Crucially, organizations must prioritize approaches to address the workforce impact of GenAI and agentic technology capabilities up front, especially front-line employees, who will continue to remain an integral part of delivering excellent customer experiences. source

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Bio-IT World 2025: Betting Big on AI, Investing in Drug Discovery, Transforming Drug Development

Cambridge Healthtech Institute’s Bio-IT World Conference & Expo was held from April 2nd to 4th, 2025, in Boston. It brought together an innovation ecosystem of investors, TechBios, and life sciences tech companies, a few system integrators, and biotechs and big pharma. The floor buzzed with discussions around innovation, partnering, and technology disruption. Twenty-eight hundred life sciences and IT executives from 30 countries were out there to explore and shape the future of life sciences innovation. Kshitij Kumar, CEO, Clovertex noted Bill Gates statement that despite the AI revolution, 3 roles that will remain essential include coders, energy experts, and biologists. So, folks in the life sciences industry, we are in the good place! Important points that came up in the keynote including ‘How do you measure the probability of success when building or investing in a company? How do you maintain the balance between speed vs perfection? How do you continue to build and manage risks, especially when, in the life sciences industry, regulatory and scientific risk is higher than market risk? As Sonya Makhni medical director, Mayo Clinic, called out ‘Develop your own risk stratification strategy for clinical and technical risk’. Subha Madhavan, VP and head AI, Pfizer noted ‘Creating regulatory grade RWD will occupy our mind for the next few years’. The Cambridge Venture Innovation and Partnering (VIP) forum was full of deep discussions where investors provided some invaluable guidance to the startup community of life sciences tech companies and Techbios on what were the critical aspects guiding their investment decisions, how AI adoption impacted these decisions and what were the critical factors impacting partnering decisions with biopharma. Since tech investors were seen to focus on business fundamentals, while biotech investors were seen to focus on the data that TechBios generated, the importance of clearly articulating ones value proposition so that it resonated with investors was emphasized. Pharma stressed that it looks for first in class or best in class assets that have ideally been already approved – asset differentiation is key. Having an asset in hand would save spend on time and money spent on the discovery process and this is the differentiator that TechBios would bring to the table. Notably, the timeline to demonstrate success is getting shorter and shorter, speed is a differentiator, and investors are monitoring this carefully. Establishing key partnerships with pharma would significantly enhance the valuation of TechBios. Life sciences tech companies on the other hand should focus on hiring life sciences domain experts who can train models and should have people on their boards who can determine product fit rather than those who can develop the product. VC firms called out that 2025 would be about GenAI for small molecules, while 2026 would be about AI driven intelligent lab automation. Finally, it was not just about building the technical infrastructure, but also about building a nimble culture and an agile culture to swiftly capture the right opportunities. Biopharma companies were also advised to rethink their budgeting strategies and to factor in the spend on IT infrastructure in the cost of developing a new molecule. Drew Dresser, Sr Director AI and Cloud Engineering, Flagship Pioneering spoke about how Flagship was building a digital backbone including scientific computing, a cloud foundation, scientific data models, and workflow orchestration engines across its portfolio of 35 companies. He touched upon the rise in Bio FMs and how biotech innovation lives in the cloud, the evolving role of AI co-scientists, such as Google AI co-scientist and the Allen AI Ai2’s code scientist, and how the role of agents will move beyond transactional activities to playing a role in hypothesis creation.  Abbvie presented its CSR authoring solution. Tobi Guennel, SVP product innovation Quartz Bio, presented its precision medicine AI platform which leverages a series of agents including orchestration agents, DM and Intelligence Agents, Auxiliary agents, Navigator agents and more, where all agents are embedded in the fabric. He reports that this resulted in a two-fold increase in speed from data to insights and a 25% increase in R&D output. Illumina highlighted that multiomics is at the core of identifying targets for cancer vaccines, and it emphasized the importance of the use of AI in spatial genomics to determine where the target is located in the tumor. ConcertAI, which positions itself as an oncology GenAI company, discussed how it has partnered with NVIDIA to build its platform with a multi-agentic framework and proprietary SLMs and LLMs to support oncology clinical trials. It forecasts that by 2027, domain-specific GenAI tools that are fine-tuned for pharma applications will deliver a 3-5-fold higher ROI than general purpose foundation models, particularly in regulatory-sensitive contexts. On a separate note, Joan Chambers, Senior Consultant, Tufts Center for the Study of Drug Development, presented findings from the Partnership for Advancing Clinical Trials (PACT), survey in which 15 biotechs and pharmas had participated, and noted that 75% considered hybrid decentralized clinical trials (DCTs) as a strategic objective and that they will use DCTs in more than 45% of their trials in the coming 5 years. Be it drug discovery, or drug development, GenAI and agents are leading the way. Life sciences is adopting AI at the speed of thought and slowly but surely, making precision medicine a reality. As Bill Fitzgerald head biotech markets Google Cloud aptly put it, ‘If AI were a drinking game, most people wouldn’t make it to breakfast’. “What really stood out at the BioIT event was the sharp appetite in the industry for implementing GenAI/agents to transform drug discovery and drug development, the focused yet nuanced investment strategies of VC firms for investing in TechBios vs life sciences tech companies, and the realization that for once, the entire innovation ecosystem, including regulators, is working together to accelerate disruptive innovation in the life sciences industry”, said Dr. Nimita Limaye, Research VP, Life Sciences, R&D Strategy and Technology, IDC. source

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Trade Wars to Tech Wars: Can China’s Stimulus Offset U.S. Tariffs in ICT Markets?

The U.S.-China tech rivalry has escalated to a new level this April 2025 with U.S. tariffs becoming a targeted trade tool. The Trump administration unleashed​ waves of tariffson Chinese goods: on March 4, a 10% tariff on all imports was imposed on top of raising tariffs from 10% to 20% on many Chinese electronics, machinery and industrial components; on April 2, ending of de minimis eligibility for China and Hong Kong (from May 2) and the “reciprocal tariffs” on key critical sectors imposed an additional 34%; and on April 8, an additional 50% tariff on semiconductors, EVs, and robotics was announced. There also continues to be tariff escalations, clarifications and exemptions like in cases where final products have more than 20% of U.S. produced components. Chinese imports can be as high as 245% on needles and syringes or as low as zero for children’s books. Imported smartphones, computers and electronics appear to be currently granted a partial tariff reprieve and may only be subject to the March tariffs of 20%. These adjustments will probably continue as the impacts are felt by American consumers and the global markets. Some view these measures as a means to derail China’s technological ascendancy by inflating costs, disrupting supply chains, and isolating it from global markets. Beijing’s counterstrategy, a mix of aggressive fiscal stimulus packages, supply chain resilience frameworks, and enforced technology self-reliance, suggests a calculated pivot to absorb short-term shocks while securing long-term growth. The question then is: can China’s 2025 policy playbook neutralize U.S. tariffs’ impacts and sustain its ICT ambitions? U.S. Tariffs’ Impact on China’s ICT Sector IDC’s 2025 projections reveal a sector under strain but adapting. Our baseline scenario, with 20% tariffs in place, China’s ICT spending is expected to grow at 9.1% driven by domestic AI, cloud, and industrial software demand. With 50% tariffs, IDC’s downside scenario will slow down growth to 5.7%, with consumer electronics (PCs, smartphones) declining ​7.6% due to inflated import duty. An optimistic scenario, with tariffs rolled back, sees China’s ICT spending growth at 9.9%, fueled by pent-up innovation and continued existing global partnerships. Contributing to China’s ICT spending in 2025 are the key trends we are seeing in software/cloud services (+10 to 16% YoY), largely due to organizations prioritization of digital efficiency, as well as in industrial technologies such as AI, IoT, automation, which remains resilient due to state subsidies. While the consumer hardware export market is expected to falter (e.g., iPhone costs rose 25% post-April hikes), domestic demand is expected to remain steady with government subsidies. China’s Growing Tech Independence There is increased emphasis on China’s “dual circulation” strategy that was originally a response to the U.S. tariffs and other sanctions introduced between 2018 and 2020. The strategy seeks to prioritize domestic consumption and non-western international trade to gain greater self-reliance and resilience. This strategy can be seen at work in the likes of DeepSeek whose open-source models are now powering a ​significant portion of Chinese Cloud services including Tencent, Alibaba and many more. Huawei’s Ascend AI chips also increased their share of AI-accelerator chips to ​27% in 2024 and is expected to reach 40% by the end of 2025. Companies’ Response: Increased Agility to Respond to Tariff Chaos Agility is the name of the game amid all this tariff chaos. Chinese tech giants are restructuring their supply chains by accelerating offshoring to Southeast Asia, shifting their assembly lines to sidestep tariffs. They are also diversifying their markets by pivoting to emerging markets, such as expanding electric vehicle and cloud service exports to tariff-immune regions. Some companies are also innovating operations by adopting leaner strategies like AI-powered factories to cut waste or using direct shipping tech from e-commerce platforms to bypass tariffs. China’s 5-Point Plan: A Phase-Matched Counterattack In response to each wave of tariffs, a 5-point plan helped blunt immediate impacts while increasing long-term leverage: 1. Domestic Demand Boost via “Consumer Upgrade Action” Plan With the aim of boosting domestic demand and spurring economic growth, the Chinese government has put in place subsidies and trade-in programs for eligible consumer goods. For smartphones, tablets, and smartwatches, the government subsidy is up to 15% of product price, capped at ¥500/item. This trade-in program is expanded in 2025 to apply to other electronics, EVs and home appliances as well, as illustrated in the following chart: The subsidies also target rural/low-tier cities for 5G adoption, smart home devices, and rural e-commerce logistics. There are also plans to stabilize consumer confidence through stock/real estate market reforms and wage growth policies. The effect of these subsidies can be seen in the latest sales-out PC shipments with flat growth of 1% in 1Q 2025 compared to -16% in 1Q 2024. 2. Increased Funding for Emerging Tech China’s $138B Innovation Fund aims to boost homegrown tech innovation and reduce foreign reliance amid escalating U.S. tariffs. It focuses on discovering and increasing “original technological breakthroughs” in early-stage startups in AI, quantum computing, hydrogen energy, biomanufacturing, and 6G technology. Funding is a combination of state capital and private/local government long-term (over 20 years) investments in R&D infrastructure and tech-to-product pipelines. The innovation fund also involves industry stakeholders such as the MIIT (Ministry of Industry and Information Technology), academia, enterprises (to enhance smart manufacturing), and foreign collaborators in the telecom/robotics sectors. The program also aims to cultivate and highlight domestic STEM talent to offset global supply chain risks, with existing success stories like DeepSeek. 3. China’s “Five Financial Priorities” Guidelines These guidelines provide financial support to organizations providing technology, green finance, digitalization, financial inclusion, and pension products and services. It uses technology investments to bolster innovation and self-reliance. Key measures include: comprehensive financing for national tech projects and SMEs via equity, debt, and insurance tools; capital market focus prioritizing early-stage investments in emerging technology through multi-layered markets; risk mitigation mechanisms to disperse R&D risks and expand venture capital/angel funding; and patient capital to cultivate long-term investments that nurture tech leaders, unicorns, and specialized SMEs. This framework integrates financial resources to advance China’s tech competitiveness and industrial

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Tariff Impacts On Technology Sourcing? How To Plan For and Mitigate Risk

There is much interest and inquiry related to the recent tariff actions by the current U.S. administration, how they will impact technology pricing and what – if any – strategies are recommended. To better assess the recent and possible future tariff impacts on the technology industry, we first need to acknowledge that due to the technology industry globalization, nothing is exclusively manufactured or hosted in the United States. Technology companies all have some dependent regional relationship with Asia, Mexico, and/or Canada, which is where the recent tariffs have been targeted. These tariffs, if put in place for the long term, will have an impact on hardware, cloud services, and to some degree, software costs. Larger suppliers – including but not limited to – Microsoft, Google, Amazon, and IBM all have data centers in Asia, Canada, and Mexico. They also purchase large scale servers, storage and related components. Depending on how they are getting assembled and where they are getting shipped from and to, there would be varying tariff impacts to their component pricing. This likely means some of that pain will be passed on to their clients. Hardware, including semi-conductors and related components, imbedded software used for PC’s, network & telecom hardware, smart phones, smart devices, large scale computers and storage, are all part of the technology component eco-system. Due to the current state of inflation, continuous improvements and advancements, like AI in hardware, there are always expectations of price increases through each enhanced model year. If tariffs are in place long term, companies should brace for hardware increases anywhere from 9% to 45%. These increases go across various hardware platforms. Customers may not feel the related price impact immediately after tariffs have been announced as the effects on the supply chain typically take time to play out. IDC is now seeing tech companies in the hardware space already increasing prices to their clients. Cloud services companies such as AWS and Microsoft have held prices steady so far and have not announced when and if price increases will occur. AWS is offering incentives to their long-term clients who continue to use and plan to purchase additional cloud services. AWS appears to be doing this to maintain a competitive advantage. In the hardware space it is likely that most suppliers will look to hedge their bets and begin price increases sooner or press their customers to take early hardware inventory to avoid major price increases as the tariffs go full board. HPE and Dell have already begun increasing prices to their clients, yet Cisco and Apple have held off so far. To address risk in this space companies may take hardware inventory earlier than planned which can create a delay or shortage of products in the supply chain. The likelihood is that many organizations having critical and productivity technology requirements will be scrambling to manage budget and infrastructure risk. One choice that some companies are making already is to delay and/or reduce the volume of orders, filling only the most critical of needs. Another common practice that some companies are looking to consider is brokered hardware. This is mostly the purchase of used hardware from OEM’s and third parties such as resellers and other industry specific suppliers. The idea is that used hardware can mitigate the increased pricing of new hardware that is already in supplier inventory and immune to tariffs. The advice here is for organizations to be rigorous, disciplined, and have governance with how any used hardware brought into their infrastructure needs to be adapted into their ecosystem. What we do not know with certainty is how the intended strategy for these tariffs will play out and resonate across the technology supply chain, hence the need to keep close to all available data sources. There appear to be specific tariff objectives regarding each country, meaning that these tariffs may have multiple intentions other than the traditional implementations. With Canada, the tariffs are being used to address the flow of illegal narcotics into the U.S. With Mexico the tariffs are being used to address the situation at the U.S. southern border. With China, the tariffs are being used to address the opioid supply chain situation. With parts of Southeast Asia tariffs are being used to address data privacy concerns. Given the non-traditional and negotiation use of the tariffs, there is a real need to be vigilant with the ongoing activities, discussions, and announcements to avoid making poor decisions and/or taking unnecessary actions. It’s better to watch how this plays out day by day. There is a lot at stake here if companies begin to react too quickly. Of course, a concern could be that if timely decisions are not made in synch with the tariff actions occurring, companies could end up with unplanned, unmitigated risks and consequences. Given the complexity of these tariffs and the ongoing shift of positioning it is very challenging to decide when and how to implement any plan. The good thing is that with the current White House administration we are getting transparency with continuous updates on the tariff situation from a variety of media sources. It would appear business leaders will at least have some reasonable time frame to execute a well-orchestrated plan. This helps with the decision-making tree organizations need to create and manage. Creating these critical decision planning mechanisms helps to make informed decisions rather than uninformed rash decisions, especially in this current fluid situation. Keep in mind that in 2022 the CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act was put into place to help reduce the United States dependency on other countries for designing and building technology components and infrastructure. There is still a way to go before the goal is reached. However, there are estimations that the United States will triple its current semiconductor production by 2032. The CHIPS and Science Act was not initially planned to eliminate global technology trade but more to reduce its current global technology supply chain dependency. Most recently the new administration

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The Buyer Behavior Shift: Capitalizing on AI’s Potential

Over the last five years, B2B tech buyers’ preference for digital engagement across their journey has risen substantially. GenAI is a driving force behind this shift in buyer behavior – and marketers must capitalize on it before it’s too late. In 2024, 74% of B2B tech buyers have said they’re going to engage more with e-commerce and work less with salespeople, an increase from 56% in 2020. IDC has learned that 50% of mid-market tech marketers are either in a “wait and see” mode, or in an AI experimentation phase.  But the C-suite says that the number 1 external factor that will drive marketing expectations in the next year is technological advancements, specifically Gen AI. It is critical for mid-market tech CMOs to identify the most effective strategy and tactics to engage with their customers for 2025 – and meet C-suite expectations.  IDC’s webinar “Marketing’s Imperative in the Dawn of the Experience Era” by Laurie Buczek, GVP, Executive Insights and Leadership Services talks through how marketers must react to a shift in buyer behavior, C-Suite expectations and their changing own roles. Here are 3 burning questions answered in the webinar. How important is it to keep experiences ‘human-like’ while using AI tools, and how do you recommend marketers do that? Should humans be worried about their jobs? Or will humans still be needed to manage the AI tools? Keeping experiences “human-like” while using AI tools is crucial, especially in B2B tech marketing, because buyers want to feel seen, heard, and understood. Historically, early chatbots lacked human-like responsiveness—leaving users frustrated with clunky, impersonal interactions. Today’s buyers expect personalized, frictionless, data-backed journeys. Marketers must focus on creating digital experiences that feel human, especially across self-service channels where buyers want to quickly find information and move forward in their journey without hurdles. 89% of buyers in IT roles agree they will use more AI guided assistants to act as their intermediary before they reach out to a salesperson. Humans shouldn’t worry about being replaced by AI but instead should focus on evolving alongside it. Buyers still value human connection, particularly when it comes to building trust and relationships. While digital experiences are increasingly replacing tasks once handled by humans, the human role isn’t disappearing—it’s being redistributed. AI can take over repetitive, time-consuming tasks like data entry, reporting, and responding to basic inquiries. This gives marketers the freedom to focus on strategic, creative, and relationship-building work—areas where human insight remains irreplaceable. Marketers must learn to manage AI tools and to guide their use strategically. As AI continues to be integrated across the buying journey, marketers must lead the design of seamless, omnichannel experiences that combine digital tools, chatbots, interactive content, and in-person engagement. It’s not about choosing between human or AI—it’s about harmonizing them. Trust is still built through human interaction, but buyers are increasingly comfortable engaging through digital channels, even for complex or high-value decisions. AI isn’t replacing humans; it’s reshaping how and where we show up—and marketers who embrace this shift will lead the way. C-suite expectations seem to be high when it comes to AI, automation and Martech. What’s the one thing a CMO should focus on first to capitalize on the AI potential? A CMO must commit to becoming the “conductor of the orchestrated journey”. With AI and automation becoming central to C-suite expectations, the one thing a CMO should focus on first is building a strong, connected foundation of customer data and analytics. This enables everything else—predictive models, intelligent content delivery, and autonomous marketing. By becoming the “conductor of the orchestrated journey,” CMOs can use this data to deliver the right message, at the right time, through the right channel. This focus empowers marketing teams to drive not only customer acquisition and engagement but also to fulfill their expanding role as stewards of the full digital customer experience. Without this strong data infrastructure, AI capabilities can’t reach their full potential, and marketing will struggle to meet evolving executive expectations. Additionally, CMOs should prioritize modernizing the Martech stack to activate AI effectively and align with C-suite priorities. The expectation isn’t just about implementing tools—it’s about marketing leading digital business transformation, improving customer intelligence, and governing the responsible use of AI. As AI becomes deeply embedded in how buyers engage and how marketers operate, CMOs are now central to ensuring both innovation and trust. The executive team is looking to marketing not just for growth but for leadership in navigating this new AI-driven era. So, by focusing first on data readiness and Martech modernization, CMOs can unlock AI’s full potential and position marketing as a strategic driver of business transformation. How do you see product-led growth as a key to success for B2B companies? There are debates about what works better, product-led growth (PLG) or brand-led growth but the core message is no matter what way you want to grow, make sure that your growth is centered around the customer. The leaders that succeed are the ones that prioritize a customer-centered approach, ensuring that their product delivers immediate value and drives adoption naturally. When businesses rally around the customer’s needs, they create a more seamless and engaging experience that fosters organic growth, reduces friction in the buying process, and ultimately leads to better results. Companies that fail to align strategies around the customer often experience internal conflicts that can hinder progress, create inefficiencies, slow decision-making, and, in extreme cases, contribute to a company’s downfall. The key to success is embracing a collaborative, customer-first mindset across the organization that is informed by AI-enabled market and customer insights.  When product, sales, and marketing work together under a unified vision, they create a growth engine that’s fueled by customer satisfaction and advocacy. In this way, no matter the growth strategy, the culture shift enables sustainable, long-term success for B2B companies. The Marketing Imperative The next era of marketing is here. AI is opening a new world for marketers to drive innovation, differentiate their messaging and accelerate growth. The beauty of AI is it allows

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The Impact of April 2 Tariffs on IT Spending

The wave of new tariffs introduced by the US administration will drive up technology prices, disrupt supply chains, and weaken global IT spending in 2025. Not only will these tariffs have a direct inflationary effect on technology prices in the US, but growing concerns about a broader economic slowdown will lead to weaker investment by businesses and consumers around the world, even prior to any slowdowns appearing in earnings or economic data. This impact will unfold quickly in 2025, despite the strong countervailing force of growing demand for AI and related technologies.   On March 31, IDC published a downside scenario in which global IT spending would grow by 5%, rather than the 10% growth we currently project in our baseline forecast. This scenario was modelled before the latest tariff announcements in April but already reflected the potential impact of a broadening economic slowdown. While the details of final tariffs don’t align exactly with that downside scenario, we expect our baseline forecast will move towards the lower end of that 5-10% range over the next few weeks.   As a result, we are developing a new downside scenario that reflects the possibility of a broadening global trade war, which will likely include additional tariffs and retaliatory measures by many countries. These may include protective actions against countries other than the US. Our new baseline forecast in April will reflect what we now know, which is that these new tariffs will have a significant negative impact on the ICT industry in 2025.  This situation remains highly fluid and dynamic. Tariffs set to be implemented on April 9 may yet be adjusted or postponed, and the response in other countries could include stimulus measures to protect short-term economic stability in China and elsewhere. This is a moving target, but the risk of a global recession is higher than one week ago, with some economists now pegging it at 40%, and this uncertainty will have an immediate effect on business and consumer confidence.   New tariffs will have an inflationary impact on technology prices in the US, as well as causing significant disruption to supply chains. While this impact will be most immediate in devices, then other compute, storage, and network hardware as well datacenter construction, even sectors such as software and services will be affected if tariffs are longer lived. There’s also an indirect negative impact of tariffs on software and services, where the provider delivering the software and/or services will incur increased costs for the infrastructure to develop and deliver the product, meaning that many software and services vendors will need to include increased costs in their own pricing assumptions.   Some devices and hardware vendors may seek to mitigate the impact, but US customers will swiftly feel the effect of higher prices. Lean inventories and rapid manufacturing cycles mean that price hikes will materialize quickly. The broad, unfocused nature of these new tariffs leaves manufacturers little room to adjust.   It’s important to note that our surveys of IT buyers had remained relatively resilient through March. While there is significant concern over the uncertainty caused by tariff policies, a majority of firms in March were trying to protect their key investment priorities around AI, analytics, security, and IT optimization. IT is more important to the business than ever before. We will be checking in with IT leaders on these same issues in mid-April.  Price sensitivity is rising, however, which history shows is a major cause of competitive disruption. The IT market will continue to be more resilient than during previous economic cycles, and more resilient than many other sectors of the economy. Service providers will try to maintain their aggressive investment in deployments of AI infrastructure, and they have the ability to optimize asset use to much greater extent than even the largest of their enterprise customers. For businesses, IT has largely transitioned from a capex to an opex model in which a larger share of technology spending is essential to business operations and is increasingly tied to business conditions.   Despite all of this, the reality of a slowing economy and rising unemployment will have a direct impact on IT spending. Consumer spending is likely to be hit hard. Businesses will first look to cut spending on devices and on-premise infrastructure, seeking rapid cost benefits to protect the bottom line. Any job cuts will have a direct impact on some types of IT spending.    IT services spending is vulnerable to a slowdown in new contract signoffs, which will be driven by a broader economic slowdown in the next 6-12 months. Combined with other economic headwinds, including government spending cuts in the US, this adds up to a much weaker outlook for short-term investment in new technology projects.   Conclusion  Our March 31 forecast of 10% growth for global IT spending will be reduced significantly in April, based on the tariff announcements of April 2. The situation remains extremely fluid, and subject to new announcements or changes, but a weakening economy will lead to IT spending cuts and delays in the next six months. We will move closer to the previous downside of 5% growth, which reflects a rapid, negative impact on hardware and IT services spending.  Agility is key to navigating this period of major disruption and uncertainty. It may take several months for the full picture to become clearer, but this is already causing delays in some types of investment. Underlying demand for IT is still high, and the likelihood of a decline in overall IT spending remains very low, but adjusting to a new baseline of slower growth in the near term is our new reality.   The tariffs announced this week have introduced significant instability into the IT market. If the measures announced on April 2 stay in place and trigger an escalation of retaliatory measures leading to a global recession, the impact on IT spending will be swift and downward, potentially leading to the worst market performance since the great financial crisis of 2008-2009.  IDC will continue to monitor developments closely. We’ll

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Three Methods for Channeling Shadow IT’s Energy

Shadow IT, or black IT, is a reality in most organizations today. The concept refers to technology solutions — software, services, and infrastructure — procured and implemented by business units without formal approval or oversight from the IT team and fueled by decentralized technology budgets and the proliferation of cloud services. While shadow IT presents significant risks, it can also drive innovation. For CIOs, the question shouldn’t be about whether to eliminate shadow IT but how to harness its potential while mitigating its dangers. At its core, shadow IT arises from frustration. Business teams focus on speed and results, often perceiving IT as an obstacle rather than an enabler. In some cases, this frustration is justified — IT inefficiencies can slow progress. However, organizations that prioritize maximizing the value of existing technology over continuous innovation may inadvertently drive business units to seek their own solutions. There are organizations that go to great lengths to eliminate shadow IT. Often this is through policy and stringent financial controls that make it almost impossible to procure anything that looks technology related. The cost of policing these restrictions can be high, both in terms of effort and potentially in terms of lack of business agility. The 5 Key Risks of Shadow IT While overreach in policing shadow IT can be problematic, letting it run rampant is ill-advised, as it carries five negative implications for organizations. CIOs need to be aware of these risks: Increased costs: Procurement handled at the business unit or team level rarely benefits from volume discounts or enterprise agreements. Without IT oversight, organizations miss cost-saving opportunities through standardization and economies of scale. Security and compliance risks: Teams focused on immediate needs often overlook security and regulatory requirements. Unvetted solutions introduce data privacy risks, non-compliance with industry standards, and potential cybersecurity vulnerabilities. Redundant and incompatible systems or data: Multiple teams purchasing similar but non-integrated solutions leads to fragmentation: data silos, duplicated efforts, and inefficiencies that hinder long-term digital transformation strategies. Vendor manipulation and lock-in: Non-IT professionals negotiating directly with technology vendors might not ask the right questions about scalability, integration, or long-term costs. This can result in poor contract terms, hidden fees, and vendor lock-in. Wasted time and effort: Each meeting with suppliers to discuss the same questions that others in the organisation have discussed is wasteful. Each hour spent on implementing a system that already has an implemented alternative is wasteful. Shadow IT: A Sign of IT Failure or a Form of Business Agility? Despite its risks, shadow IT is not necessarily a sign of failure. Uncontrolled shadow IT can indicate dissatisfaction with IT’s responsiveness, but it also signals business units’ willingness to innovate. The real issue is not the existence of shadow IT but whether it is being leveraged constructively. Organizations that take an overly rigid stance — blocking all non-standard technology purchases — often end up stifling innovation. A CIO’s role is not just to prevent risk but to create an environment where business-led innovation can thrive without compromising security, compliance, or efficiency. In fact, shadow IT can be an exceptionally effective source of innovation. It can be an asset when professionally managed. And business teams often procure solutions that directly address their pain points. So, how can IT leaders embrace shadow IT without losing control? Three Strategies to Harness Shadow IT In my experience as advisor to CIOs, I have helped implement three methods that work well to satisfy business units’ thirst for agility in a controlled way. Implement an IT-Approved “Solution Finder” Think of it as an internal IT marketplace — a curated list of approved SaaS solutions, third-party tools, and integration-friendly alternatives. This provides business units with a faster, sanctioned route to solving their problems while ensuring security, compliance, and cost efficiency. Encourage collaboration between IT and business teams by allowing teams suggest technology that would otherwise become shadow IT. Create a Protected Budget for User-Driven Innovation Allow business teams to pledge partial funding from their budget toward team-defined technology investments. IT can aggregate these requests and match these pledges with a dedicated innovation fund, ensuring proper vetting while enabling efficient business-led experimentation. Introduce a “DARC Tax” on Risky Shadow IT If teams invest in what I like to call DARC (dangerous, awfully conceived, redundant, or costly) solutions, they should face financial consequences. A budget penalty on non-compliant purchases encourages better decision-making and incentivizes teams to engage IT earlier in the process. It can also be used to remedy the issues caused and even to fund user-driven innovation. As for how to enable a mechanism that roots out non-compliance and applies a penalty, charge-back methods can work quite easily. For instance, business units that are running old software are sometimes charged a premium against their P&L, as incentive to upgrade. Similar penalties could be applied to DARC software. Partnering with LOBs IDC believes that partnering with lines of business to regulate and leverage shadow IT is the only viable solution to a problem that is getting worse year by year. IDC’s Moving from Shadow IT to IT-Business Joint Ventures report gives actionable advice for CIOs and can be implemented with assistance from the IDC Executive Advisory service. The Bottom Line for CIOs Completely eliminating shadow IT is neither feasible nor desirable. Instead of fighting it, CIOs should channel it, turning unsanctioned technology adoption into a structured, business-aligned innovation strategy. By offering guidance, funding, and guardrails, IT can support business agility while reducing security, compliance, and cost risks. Shadow IT is not the enemy — it is an opportunity. The question is: Will your IT organization embrace it strategically, or continue to resist the inevitable? As self-service tools, low-code platforms, and “citizen developers” gain traction, IT organizations must shift toward the role of enabler, not gatekeeper. The future of IT leadership lies not in control, but in collaboration. source

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Responsible and Secure AI: The Key to AI-Fueled Growth

As Asia/Pacific businesses accelerate their digital transformation journeys, artificial intelligence (AI) is becoming a core innovation enabler. From identity and access management (IAM) to risk-based trust frameworks, AI is reshaping the cybersecurity landscape. However, as AI adoption grows, so do concerns around security, trust, and compliance.   According to IDC’s Asia/Pacific Security Study, 2024, 76.5% of enterprises in the region say that they are not confident in their organization’s ability to detect and respond to AI-powered attacks. Most are concerned about AI-driven vulnerability scanning by attackers, the rapid exploitation of zero-day vulnerabilities, increasingly personalized and effective social engineering attacks that leverage AI, and AI-powered ransomware attacks with dynamic negotiation and extortion tactics. The risk of AI-driven risk vectors increases in verticals dealing with sensitive and confidential information such as Banking and Financial Services (BFSI) and Healthcare as well as critical infrastructure sectors like energy, transportation, and telecommunications, where disruptions can have widespread consequences.  With cybersecurity emerging as a central theme across the region, AI-fueled business models must address key challenges:   How can organizations ensure AI systems are secure, transparent, and resilient?   How should regulatory frameworks evolve to accommodate AI-driven cybersecurity?   What steps can businesses take to balance AI innovation with trust?   How can enterprises implement a robust AI governance framework to manage security, compliance, and ethical risks effectively?  To navigate these challenges, enterprises must address three key areas that impact the secure and responsible deployment of AI:  1. Integration and Cost Barriers to AI Security Adoption  Despite its potential, AI-driven security automation struggles with integration issues and high costs. According to IDC FutureScape: Worldwide Security and Trust 2025 Predictions – Asia/Pacific (Excluding Japan) (APJ) Implications, by 2027, only 25% of consumer-facing companies in the region  will use AI-powered IAM (Identity and Access Management) for personalized, secure user experiences due to persistent difficulties with process integration and cost concerns, creating a trust gap in AI authentication and identity protection, particularly in consumer-facing sectors like retail, banking, and e-commerce.  2. Regulatory Fragmentation Complicates Compliance  Asia/Pacific’s inconsistent AI regulations make compliance difficult. While Singapore and Australia lead AI governance, India and ASEAN nations lag behind, creating inconsistencies in how businesses implement AI security solutions. China has implemented strict AI laws focused on security assessments and algorithmic transparency, while Japan follows a more flexible, self-regulatory approach emphasizing Responsible AI. One of the most critical shifts in cybersecurity will be the introduction of AI Bills of Materials (AI BoM). By 2028, 70% of data products will include a Data BoM, detailing how data was collected, processed, and consent was obtained. This evidentiary trail will be essential for demonstrating compliance and ensuring AI systems do not operate as black boxes. Alongside, AI governance is mandatory, rather than exploratory. Some nations have demonstrated leadership in already initiating AI governance frameworks – such as Singapore, Australia, India, and Japan – setting the stage for responsible and secure AI adoption across the region. These countries are proactively developing policies and frameworks to ensure AI-driven technologies align with security, compliance, and ethical standards.  3. Unchecked GenAI Adoption Creates Security and Compliance Risks  The rapid expansion of GenAI poses major security and governance challenges for enterprises. IDC predicts that in 2025, 20% of organizations in APJ will move from proof-of-concept (POC) to production in specific GenAI use cases without a comprehensive risk-based assessment of their trust capabilities, potentially creating a cybersecurity house-of-cards scenario. Key risks include data leaks, bias in AI models, and regulatory penalties as governments tighten AI security laws. Without proactive governance, enterprises risk non-compliance, reputational damage, and increased exposure to AI-driven threats.  To mitigate these risks and build trust in AI-powered security, organizations must establish a robust governance framework that ensures transparency, compliance, and operational resilience. This is where IDC’s Unified AI Governance Model comes into play.  IDC’s Unified AI Governance Model  IDC’s Unified AI Governance Model is a strategic framework that balances innovation with risk management, ensuring AI deployment aligns with compliance, security, transparency, and ethical standards. It is built on four key pillars: transparency and explainability, security and resilience, compliance and privacy protection, and human-in-the-loop (HITL) governance.  IDC defines AI governance as a system of laws, policies, frameworks, practices, and processes that enable organizations to manage AI risks while driving business value. Governance must be integrated into strategy rather than treated as a reactive measure. Without it, enterprises face operational inefficiencies, legal exposure, and reputational risks. The model also acknowledges external influences, such as regional regulations, ethical considerations, and societal expectations, which vary significantly across APJ markets. Ensuring that AI governance adapts to these external factors is critical for sustainable and trusted AI adoption.  IDC’s Unified AI Governance Model provides a structured approach to managing AI security and trust by addressing some key questions such as:   Who is using what data, and where is it stored?   How is personally identifiable information (PII) data protected through encryption or anonymization?   Are AI models being tested against risk controls and compliance requirements?   Is there a risk assessment framework for GenAI deployments?  Path Forward: Cybersecurity and AI Governance for Asia/Pacific Businesses  To foster a secure AI-driven future, businesses must take a proactive approach to cybersecurity and AI governance. Key steps include:  Embedding AI Bill of Materials (BoM) in Cybersecurity Practices: Developing transparent AI security frameworks that document data provenance, consent mechanisms, and compliance checkpoints.  Investing in AI-Powered (Identity and Access Management) IAM with Risk-Based Authentication: Incorporating adaptive authentication, behavioral analytics, and risk scoring to strengthen trust in AI-driven security systems, instead of relying solely on AI-driven IAM.  Conducting Comprehensive Risk Assessments for GenAI Deployments: Establishing robust governance policies to prevent unintended risks when moving from GenAI POC to production.  Integrating Autonomous AI for IT Operations: By 2027, GenAI and analytics deployments for IT operations use cases will increase team productivity by 15%, generating $1.5 billion in economic and business value. Automated IT service desk responses, anomaly detection, and predictive resource capacity planning will be critical for AI-enabled security frameworks.  Collaborating with Regional Regulatory Bodies: Actively participating in shaping AI governance

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The CIO Imperative: Six Priorities for the AI-Fueled Organization

Technology is no longer just an enabler – it transforms how organizations function, compete, and deliver value.  Specifically, AI is now fundamentally changing business processes, operations, and experiences, something that presents CIOs with both challenges and opportunities. As a result, the role of the CIO and IT must evolve beyond an enabling function. Historically focused on operational excellence, CIOs now face a strategic imperative: becoming orchestrators of business value. Leveraging deep technical expertise and proactively acquiring new capabilities, CIOs are expected to effectively harness AI to drive meaningful innovation and measurable business outcomes. However, many CIOs and IT departments remain too focused on traditional IT and IT-related metrics, limiting their ability to drive broader business outcomes. Closing this gap requires a fundamental shift that was already anticipated as part of digitalization efforts but now intensified by the pressure to deliver value on the AI agenda. CIOs must evolve from technology stewards to strategic innovators, driving resilient and adaptive organizations. Those who proactively do and align AI with business priorities will shape their organization’s future, those who hesitate risk being left behind. To successfully navigate this evolution, CIOs must address six imperatives. This is what this looks like in practice. 1. Manage Regulatory Complexity and Enforce AI Governance Rapidly changing AI regulations present major hurdles. In the report IDC FutureScape: Worldwide CIO Agenda 2025 Predictions – Asia/Pacific (Excluding) Japan Implications, IDC predicts that in 2025, 50% of the Asia-based top 1000 (A1000) organizations will struggle with divergent regulatory changes and rapidly evolving compliance standards, challenging their ability to adapt to market conditions and drive AI innovation. CIOs must proactively address these challenges by developing agile compliance frameworks. Also, 41% of APEJ organizations are focusing on establishing organizational data governance policies for AI/GenAI usage, according to the IDC 2024 CIO Sentiment Survey. We expect this to increase as this regulatory complexity demands organizations to have unified AI governance, and IDC predicts that by 2025, 70% of organizations will be formalizing policies and oversight to address AI risks (e.g., ethical, brand, and PII), aligning AI governance with strategic business goals. CIOs must develop trust-centric AI governance models that align clearly with strategic business objectives. This can help organizations use AI responsibly, maintaining customer trust, while still capturing the benefits of rapid technological innovation. 2. Reduce Technical Debt to Accelerate Innovation Modernizing IT is the top strategic priority for 37% of CIOs in the Asia/Pacific region, according to the same survey. This is because technical debt creates complexity, slows innovation, and restricts the ability to effectively adopt and scale new technologies like AI. IDC predicts that responding to the drag of technical debt, 40% of CIOs in 2025 will drive enterprise initiatives in high-impact areas to remediate technical debt for competitive advantage. Clearing technical debt – from aging codebases to outdated systems, and inefficient processes – enables organizations to quickly adopt new technologies, reducing barriers to innovation and accelerating AI integration. CIOs who prioritize tackling technical debt will position their organizations to adopt technology innovations faster, ensuring readiness for more complex AI-driven transformations. This can help boost innovation, improve agility, and increase the return on technology investments. 3. Turn AI Experimentation into Enterprise Value Although AI adoption has rapidly moved from niche to mainstream, many organizations remain stuck in pilot paralysis, struggling to advance beyond the proof-of-concept (PoC) stage. According to the IDC’s 2024 Future Enterprise Resiliency and Spending (FERS) survey, wave 4, organizations in Asia Pacific conducted an average of 24 GenAI pilots over the past 12 months, but only 3 progressed into production, partly due to the lack of clear direction. In fact, IDC predicts that in 2026, over one-third of organizations will be stuck in the experimental, point-solution phase of AI experimentation, requiring a shift of focus to enterprise use cases to deliver ROI. This stagnation hinders competitiveness, slows growth, and increases exposure to ethical risks and regulatory scrutiny. CIOs must become orchestrators of business value by effectively partnering with other CxOs to translate unclear ideas into practical AI applications. They should establish an AI Center of Excellence (CoE) to centralize expertise, share best practices, and coordinate cross-functional teams, accelerating AI deployment and ensuring consistency. Additionally, CIOs must lead the creation of a strategic roadmap for responsible AI that maximizes business impact, ensures ethical deployment, and proactively mitigates risks. So, we expect that by 2026, 70% of CIOs will lead the creation of a strategic road map to rapidly implement responsible AI solutions, maximizing benefits while mitigating risks across their operations. CIOs who bridge the gap between innovative AI experimentation and enterprise-wide deployment will help their organizations capture substantial competitive advantages and achieve tangible financial returns. 4. Strengthen Cybersecurity with AI-Driven Defense Cybersecurity is much more than just an IT issue; it is a strategic business imperative. Yet, CIOs are ultimately responsible for safeguarding their organizations, particularly as threats grow increasingly sophisticated. IDC predicts that in 2026, 50% of CIOs will diversify and broaden security strategies across their organization’s IT and security teams to address new/fast-evolving threats to their technology and supply chain ecosystem. CIOs must actively integrate AI and ML into their cyber-defense systems to protect against advanced threats, both internal and external. AI-driven cybersecurity can help not only improve threat detection, but also enhance incident response times, potentially reducing risks to operations and reputation. CIOs who effectively leverage AI to protect their IT infrastructure can improve organizational resilience, positioning their organizations as leaders in cybersecurity effectiveness. 5. Embed Sustainability into IT Strategy Sustainability has become a core business priority and technology investments play a critical role in achieving organizations’ ESG goals. IDC predicts that by 2027, 50% of CIOs will be accountable for embedding sustainability goals into every technology project, measuring outcomes to refine investments and align with environmental objectives. CIOs must actively incorporate environmental considerations into IT investment decisions, embedding clear sustainability metrics into infrastructure development and AI initiatives. By proactively integrating sustainability into their technology agendas, CIOs are effectively linking technology leadership with broader corporate responsibility.

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How Agentic AI is Changing the Face of Marketing

Just when businesses in Asia/Pacific thought they were getting to grips with artificial intelligence-led disruptions in their industries, here comes something new called Agentic AI and its ability to turn generative AI (GenAI) functionality and capabilities into actionable services. In practical terms, Agentic AI is more than just advanced chatbots, this is the next step in the evolution of AI, allowing AI agents to act with increased autonomy. A simplistic retail example would be, where previously the AI will recommend restaurants based on a user’s preferences, now it can book the restaurant and offer alternatives that match its users’ health and dietary needs (vegan, gluten-free, high protein, etc). From a marketing perspective, this progression in AI utilization has a drastic impact on how businesses promote their goods and services to potential customers. Previously, marketers would target their campaigns directly towards the customers but now the shortlisting and decisions are made by the AI. How does the AI choose the “right” product/service? What changes do marketing teams need to make to incorporate Agentic AI? Before we try and understand where we are going let’s first come to grips with where we are and look at the current state of marketing in Asia and how marketers are currently using AI. Some of the key goals for marketing in the region today are: Develop a more unified and enterprise-wide marketing strategy: Provide consistent marketing experiences across various touchpoints Personalization as a differentiator: Making marketing campaigns relevant to segments, micro-segments or even individuals based on their personal preferences and characteristics Streamline processes through automation Asian businesses, particularly those in China, have been relying on AI in all of these areas and some of the more common uses of AI are: Automated content creation (including visual content such as videos and images) for campaigns Predictive analytics to improve overall campaign effectiveness and performance Data analysis and insights into customer behavior trends, gauging public sentiment and achieving a better understanding of the customer journey More detailed insights of how Chinese firms are using AI in marketing can be found in IDC PeerScape: C2G Peer Insights to Augment Customer Intelligence Using Generative AI. By leveraging AI, marketers can optimize their marketing campaigns for targeted messaging to a wide range of customer segments across numerous online channels, while controlling distribution frequency to minimize advertising fatigue in a cost-effective method. For example, as shown in the below figure, digital advertising is still the most time-consuming process for marketers.  Actions such as amending and formatting communications for different digital mediums as well as determining which segments to target take a significant amount of time and prolong the time required to launch a campaign – all of which can now be done by GenAI and Agentic AI. With a better understanding of how marketers in the region are using AI, let’s now look at Agentic AI and what the future holds for marketing. Agentic AI Will Impact the Marketing Workforce Composition We will see that with continued use of AI, especially in campaign cost optimization,  impacts marketing workforce composition. Currently, marketers are using AI to take over mundane and repetitive tasks (e.g. formatting images across different social media platforms) which will eventually transition to taking over full-time marketing roles allowing humans to focus on more strategic initiatives. In the IDC FutureScape: Worldwide Chief Marketing Officer 2025 Predictions — Asia/Pacific (Excluding Japan) Implications, IDC lists the top most urgent trends that marketing leaders must pay attention to. One of our predictions on the impact of Agentic AI on workforces states that by 2028, 1 out of 5 marketing roles or functions will be held by an AI worker, shifting human expertise to driving strategy, creativity, ethics and managing a blended human and AI workforce. Increased Focus on AI Governance by Marketing not IT There will be a need to supervise and ensure proper performance with Agentic AI taking on more responsibilities. This will require monitoring by the marketing team themselves who know when something goes wrong as opposed to IT who monitor based on code alerts. This will require the marketing team to be trained on AI use, to make them comfortable with the use of AI and understand how it can help rather than replace them so they can truly appreciate the technology and learn  the processes and systems to use in finetuning AI performance or troubleshooting errors when they occur. Marketing Workflows Will Change The use of Agentic AI by consumers will force a change in the marketing mindset, creating new processes and areas of focus which will force businesses and marketers to rethink how they operate. As an example, let’s address the question raised earlier in this blog – How does the AI choose the “right” product/service? When the Internet and search engines grew in popularity, search engine optimization was created to improve the quality and quantity of website traffic. Companies had to rethink how they setup their websites to ensure it was “visible” in rankings to the search engines. In addition to this, many paid to have their websites listed on top of searches. IDC predicts that businesses in Asia will have to work with AI companies and start spending on Large Language Model (LLM) optimization in the same manner so that businesses and their products and services are visible to Agentic AI systems. By 2029, companies will spend up to 3x more on LLM optimization than search optimization to influence GenAI systems and raise the priority & ranking of their brands. The AI road ahead has no doubt more bumps and turns and marketers must be willing to meet these changes and challenges head on. Here are a few things marketers can do to prepare for Agentic AI: Build a portfolio of AI case studies and use cases to determine what works best for you. By matching thought leadership initiatives with AI-infused case studies, marketers will be able to develop campaigns that competitively differentiate their companies and products. Work with the technology team to ensure marketing

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