New Research Highlights AI and Low-Code Synergy Accelerating Application Development in Asia-Pacific

By 2026, 40% of net-new applications in APAC are projected to be "intelligent apps" that incorporate GenAI to enhance user experiences and create new use cases.

SINGAPORE, Nov. 5, 2024 /PRNewswire/ -- As businesses across the Asia-Pacific (APAC) region demand faster application development to keep pace with digitalization, AI-powered low-code solutions are enabling organizations to drive innovation and greater productivity. This is highlighted in a new IDC InfoBrief titled Mission-Critical Software, Delivered: Harnessing the Synergy of Low Code and GenAI, sponsored by OutSystems, a global leader transforming how companies innovate through software.

The research shows that over 60% of applications in APAC are legacy systems, posing hurdles like rigid architectures and high maintenance costs. The skills shortage exacerbates these issues, and modernizing these systems remains a priority for enterprises. However, outdated frameworks and low developer productivity often hinder progress. To overcome these obstacles, 68% of APAC enterprises are turning to modern development tools—including low code, integrated development environments (IDEs), and DevOps.

While low-code platforms can streamline software development by enabling faster application creation with minimal coding, AI-powered low-code solutions take this a step further by automating complex processes and delivering intelligent insights, which boost efficiency and spark innovation. As a result, 25% of APAC enterprises are now prioritizing the integration of generative AI (GenAI) into developer tools to drive more intelligent application development. This trend is consistent across the APAC region, with a notable uptake in Australia (25%), India (24%), Japan (26%), and Southeast Asia (23%).

"We are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between GenAI and low code," said Mark Weaser, Vice President, APAC at OutSystems. "In today's competitive landscape, OutSystems is proud to remain committed to empowering APAC enterprises to deliver mission-critical applications at scale and overcome challenges such as talent shortages and evolving market demands."

AI and Low-Code: The Future of Intelligent App Development

IDC forecasts that by 2026, 40% of net-new applications in APAC will be "intelligent apps," which incorporate GenAI to elevate existing user experiences and unlock new use cases. Top impact areas of GenAI in software development and design include increased productivity (61%), high value dev tasks/creativity (50%), and accelerated developer velocity (40%).

Additional findings reveal that AI and automation initiatives, along with application development platforms, are among the most resilient to budget cuts, even in uncertain economic climates. In fact, 30% of APAC enterprises are willing to pay a premium of 11-20% for GenAI features integrated into app development environments.

"Our research shows that many businesses in the region are actively considering opportunities to layer GenAI with low-code technologies," said Daniel-Zoe Jimenez, Vice President, Digital Innovation, Software, CX, SMB/DNB and Channels Research, IDC Asia/Pacific. "One of the main benefits of this integration is that it can help organizations accelerate their legacy modernization journeys. This approach can shorten the software development life cycle, while maintaining high application performance."

Low-Code is Here to Stay for APAC Enterprises 

Low-code adoption continues to accelerate across APAC, with one-third (33%) of enterprises recognizing it as a critical tool for driving automation and future-proofing their businesses. This trend is not limited to the APAC region – IDC predicts that by 2025, more than 60% of enterprises globally will adopt low-code technologies to enable faster application delivery and improve operational efficiency.

By region, Southeast Asia and Hong Kong lead APAC respectively with 49% of enterprises prioritizing low code for automation solutions, followed by India (35%) and Australia (31%). These figures point to a continued recognition of low code's strategic value in driving competitive advantage within a disruptive landscape, especially as businesses face demands to deliver apps and innovate more efficiently amidst economic uncertainty and a shortage of skilled developers.

"The integration of GenAI with low-code technologies is poised to meet the increasing demand for rapid application delivery and legacy modernization," said Dhiraj Pramod Badgujar, Senior Research Manager, XOps Software Development and AI Developer Strategies Practice, IDC Asia/Pacific. "Our research reveals that organizations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity."

To review the complete findings, download the full InfoBrief here.

About OutSystems

OutSystems is a global leader transforming how companies innovate through software, empowering IT leaders with a better way to build the software that matters most. The OutSystems platform helps companies develop, deploy, and maintain mission-critical applications by unifying and automating the entire software lifecycle. With OutSystems, organizations leverage GenAI to deliver software instantaneously, adapt faster to changing requirements, and reduce technical debt by building on a future-proof platform. Helping customers achieve their business goals by addressing key strategic initiatives, OutSystems delivers software up to 10x faster than traditional development. Recognized as a leader by analysts, IT executives, business leaders, and developers around the world, global brands trust OutSystems to tackle their impossible projects and turn their big ideas into software that moves their business, people, and the world forward.

Founded in 2001, the company's network spans more than 800,000 community members, over 500 partners, and active customers in 75+ countries across 21 industries. Learn more at www.outsystems.com.