SAP APAC President: Southeast Asia Eager for Innovation

Verena Siow, the newly appointed APAC president for SAP, has stated that Southeast Asian markets are demonstrating a strong appetite for innovation and are actively seeking to bypass traditional technological development stages by adopting AI-native systems. Siow, speaking in an interview with Fortune at SAP's Singapore office, emphasized that economies in the region that started their digital journeys later are particularly keen on leapfrogging directly to the most advanced technologies. This phenomenon is facilitated by young, digitally proficient populations and a growing middle class, creating an environment conducive to rapid technological advancement and the adoption of new business models. For SAP, a prominent European software company, this enthusiasm has translated into significant interest in its business AI offerings. Siow explained that companies in Southeast Asia often possess fewer resources and smaller IT departments, leading them to prioritize cloud-based solutions over on-premise software, which typically demands more extensive maintenance. She cited regional companies such as the transport conglomerate ComfortDelGro, along with airlines like Thai Airlines and Singapore Airlines, as examples of early adopters of AI technologies. SAP itself unveiled a new business AI platform in May, consolidating its existing services like the business technology platform with AI and cloud capabilities to support businesses in developing and scaling their AI initiatives. Despite this optimism, Siow acknowledged that the adoption of AI among companies in the Asia-Pacific (APAC) region is progressing at a measured pace. A study commissioned by SAP and Oxford Economics in November revealed that while Singaporean firms invest an average of $14.5 million annually in AI, they report an average return on investment (ROI) of only 16%. Siow noted that there remains considerable untapped potential, and while many organizations are moving from pilot projects to actual implementation of AI agents, the integration of AI is still fragmented. She further elaborated on the challenges and opportunities within the region, suggesting that the focus on innovation and the willingness to embrace new technologies position Southeast Asia as a key growth area for SAP and the broader tech industry. The region's dynamic economic landscape and its forward-looking approach to technology adoption are critical factors driving this trend, according to Siow. The strategic importance of the APAC region for SAP is underscored by its potential to drive significant revenue growth and market penetration in the coming years, particularly as businesses continue to navigate the complexities of digital transformation.