Avanade has launched its Build Beyond Limits: AI Reality Report, with its APAC AI investment report showing that many organizations say their artificial intelligence spending remains focused on incremental improvements rather than transformational opportunities. The report was announced in Singapore on 4 November 2026.
The findings are based on research commissioned by Avanade and conducted by independent market research specialist Vanson Bourne. The study surveyed 3,600 business decision makers across 11 markets in August and September 2026. Respondents worked for organizations with more than $500 million in global annual revenue across financial services, consumer goods and services, energy, healthcare, manufacturing, retail, distribution and transport.
What the APAC AI investment report found
The APAC findings cover 1,400 respondents. Avanade said 76% describe their teams as Established, Advanced or AI-first in their AI journey, while 73% have high or complete confidence that their teams are using AI effectively to deliver strategy and goals.
That confidence is not matched by the reported scale of operational change. Only 17% of APAC respondents said their entire teams had been fundamentally reshaped around what AI makes possible. At the same time, 79% agreed that too much of their organization’s AI investment was directed toward incremental improvements rather than transformational opportunities.
Financial accountability was another gap identified in the research. Avanade said 68% of APAC respondents agreed that their organizations had yet to formally calculate the financial return on AI investment and have the results reviewed by finance or senior leadership. Only 43% said their organizations use business-value and return-on-investment targets to judge whether they are making meaningful progress with AI.
The APAC AI investment report also found that 76% of respondents agreed their own organizations publicly portray themselves as more AI-mature than they actually are. Avanade said the findings point to a distinction between using AI to improve existing operations and using it to fundamentally change how a business creates value.
Bhavya Kapoor, President, Avanade Asia Pacific, said: “Incremental AI improvements can create real value, but improving existing operations and fundamentally transforming a business are different ambitions. APAC leaders need to be clear about where each applies, with investment decisions and measures of success to match.”
Avanade describes itself as the world’s leading Microsoft expert. The company says it helps more than 7,000 organizations modernize securely and scale AI using Microsoft technology. Founded by Microsoft and Accenture, Avanade says it operates as Microsoft’s Client Zero. The company also says it has 60,000 Microsoft professionals worldwide, 165,000 certifications and more than 25 years of experience helping organizations use people and technology to create lasting impact.
The full Build Beyond Limits: The AI Reality Report is available from Avanade.
