Ever wondered how organizations are managing to keep up with the breakneck pace of digital transformation? In Asia-Pacific, a revolutionary partnership between artificial intelligence and low-code development is changing the game, offering a glimpse into the future of application development.
This technological evolution comes at a crucial time for APAC businesses facing increasing pressure to innovate. The combination of AI and low-code is proving particularly valuable for organizations dealing with developer shortages.
"When you combine the accessibility of low-code platforms with the intelligence of AI, you're essentially democratizing application development," explains Dhiraj Pramod Badgujar, Senior Research Manager at IDC Asia/Pacific's XOps Software Development and AI Developer Strategies Practice. "This means organizations can innovate faster, even with limited technical resources." This democratization of development is especially significant in emerging markets across APAC, where access to skilled developers may be limited but the demand for digital transformation remains high.
Imagine being able to create sophisticated applications with minimal coding while leveraging the power of AI. This isn't just a developer's dream – it's becoming reality across the Asia-Pacific region. But what's driving this transformation, and how could it affect your organization's digital journey?
A recent IDC and OutSystems study has revealed a striking statistic: over 60% of applications in APAC still run on legacy systems. This technological debt isn't just a number – it represents real challenges that might be holding your business back, from rigid architectures to mounting maintenance costs that eat into innovation budgets.
The path to modernization isn't simple, but APAC enterprises are finding innovative solutions. According to the study, 68% of organizations are now embracing modern development tools, including low-code platforms, integrated development environments (IDEs), and DevOps solutions. This shift represents a strategic response to the persistent challenges of outdated frameworks and developer shortages.
Badgujar offers insight into this transformation: "The integration of GenAI with low-code technologies is poised to meet the increasing demand for rapid application delivery and legacy modernization. Our research reveals that organizations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity."
The adoption patterns tell an interesting story. Southeast Asia and Hong Kong lead the trend, with 49% of enterprises choosing low-code for automation solutions, followed by Australia (31%) and India (35%). But what's driving this regional variation, and what can your organization learn from these early adopters?
This indicates a dramatic transformation in the application development industry. IDC projects that by 2026, 40% of net-new applications in APAC will be "intelligent apps" – applications that harness generative AI to enhance user experiences and create innovative use cases.
Mark Weaser, Vice President, APAC at OutSystems, shares his perspective on this evolution: "We are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between GenAI and low code. OutSystems remains committed to empowering APAC enterprises to deliver mission-critical applications at scale."
The impact of this AI-low code synergy is already evident. Organizations report remarkable improvements: 61% cite increased productivity, 50% highlight enhanced high-value development tasks and creativity, and 40% note accelerated developer velocity. Perhaps most telling is that 30% of APAC enterprises are willing to pay a premium of 11-20% for GenAI features integrated into app development environments.
Daniel-Zoe Jimenez, Vice President of Digital Innovation at IDC Asia/Pacific, emphasizes the strategic importance: "Our research shows that many businesses in the region are actively considering opportunities to layer GenAI with low-code technologies. One of the main benefits is that it can help organisations accelerate their legacy modernisation journeys while maintaining high application performance."
IDC predicts that by 2025, more than 60% of enterprises will adopt low-code technologies globally. The future looks promising and this trend shows remarkable resilience, with AI and automation initiatives remaining protected from budget cuts even in uncertain economic conditions.
As you consider your organization's digital transformation journey, the question isn't whether to embrace this AI-low code synergy, but how quickly you can leverage it to stay competitive. In an era where speed to market and innovation are crucial, this powerful combination offers a pathway to faster, smarter, and more efficient application development.