The artificial intelligence (AI) landscape in the Asia Pacific and Japan (APJ) region is undergoing a significant transformation, according to a recent report from UiPath. The “UiPath AI & Agentic Automation Trends 2026” report highlights APJ’s emergence as a pivotal player in global AI development, driven by a surge in enterprise spending and innovative applications.
Projected enterprise AI spending in APJ is expected to rise sharply, nearly doubling from $90 billion in 2025 to $176 billion by 2028, as noted by forecasts from IDC. A substantial portion of this investment is directed towards agentic AI, with 40 percent of enterprises in the region currently utilizing AI agents and more than 50 percent planning to implement them by 2026.
“The paradigm shift to agentic AI in APJ is accelerating,” said Amit Khandelwal, Regional VP and Managing Director for Southeast Asia at UiPath. He emphasized that enterprises are increasingly focusing on deploying AI agents to enhance productivity, efficiency, and business growth. Khandelwal predicts that the most successful companies in 2026 will be those with effective deployment strategies that integrate people, processes, and technology in a well-governed framework.
This transition signifies APJ’s unique role in the global AI ecosystem, shifting from being primarily an adopter of technology to a developer and exporter of innovative solutions. The region’s diverse markets contribute significantly to this transformation. For instance, India is emerging as a global research and development hub, bolstered by over 1,950 Global Capability Centers (GCCs) that are evolving from mere support roles to strategic innovation centers.
In Southeast Asia, countries such as Singapore, Vietnam, and Indonesia are becoming fertile grounds for testing AI applications, with their agile startup ecosystems driving rapid innovation across various sectors. Meanwhile, Australia is establishing itself as a key testbed for scaling AI solutions, while China, Taiwan, and Japan are anchoring global innovation with their strengths in AI patents, semiconductor technology, and advanced research infrastructure.
As more organizations in APJ commit to AI, over 50 percent are reallocating funds from other areas to bolster AI initiatives. Among those planning to invest in AI agents in the next two years, 29 percent already have a defined investment strategy. This strategic pivot indicates that businesses are increasingly looking for measurable returns on their AI investments, with C-suite executives expecting a 2–4x return on investment within 12 to 18 months post-deployment.
While AI has traditionally been recognized for its efficiency, the arrival of AI agents introduces new capabilities, enabling organizations to use AI as a growth engine. In 2026, companies in the region will leverage agentic AI to unlock new revenue streams and reshape industries. For example, in financial services, AI can streamline workflows in loan processing and claims validation, allowing employees to focus on more complex tasks and enhancing customer service.
Moreover, the importance of orchestration in achieving a successful return on investment is gaining recognition. Over 70 percent of APJ firms believe orchestration will provide a significant competitive advantage in the coming 18 months. This coordinated approach enables companies to optimize the collaboration between AI agents, robotic process automation (RPA) robots, and human workers, facilitating better decision-making and adaptability.
Trust in AI technologies is becoming essential in the agentic era, with data governance, explainability, security, and compliance gaining prominence alongside technological advancements. Efforts to establish ethical frameworks for AI innovation are evident in the region, as demonstrated by Japan’s AI Promotion Act and Australia’s Voluntary AI Safety Standard, which aim to promote responsible development and implementation of AI technologies.
As the AI landscape evolves, a fundamental transformation in the nature of work is anticipated. According to the World Economic Forum, 86 percent of employers expect AI to revolutionize their businesses by 2030. This shift suggests a future where AI agents handle decision-making and data interpretation, while traditional robots manage repetitive tasks, allowing humans to transition to higher-level oversight roles.
Looking ahead, UiPath’s report underscores that 2026 will be a defining year for APJ, positioning the region as a key player in the global AI arena. The transition from isolated pilot projects to integrated, value-driven solutions that deliver tangible results will be critical. Success in this landscape will depend on effective orchestration, robust governance for trust and compliance, and significant efforts to upskill the workforce for the agentic future.
Ultimately, APJ’s accelerated investments in AI, coupled with its rich talent pool and technological advancements, ensure that the region not only adapts to the agentic era but also sets its pace on the global stage.
For more information, visit UiPath and IDC.
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