Over 60% of Asia/Pacific Enterprises See Regulatory Disruption to IT Operations – IDC - September 08, 2025
More than 60% of enterprises across Asia/Pacific are already experiencing moderate to significant disruption to their IT operations due to evolving data privacy, cybersecurity, and AI regulations, according to the IDC report, Regulatory Turning Point: How Data Privacy, Cybersecurity, and AI Laws Are Reshaping Enterprise Strategy in Asia/Pacific.
The report highlights how a rapidly shifting and fragmented regulatory environment is driving a fundamental reset in enterprise technology and risk strategies. From data localization mandates to AI governance frameworks, organizations in markets such as India, Singapore, Japan, and Australia are now embedding regulatory foresight into their digital infrastructure. These mandates increasingly go beyond compliance—strengthening operational resilience, digital sovereignty, and customer trust.
Drawing on insights from IDC’s 2024 Asia/Pacific Security Survey and 2025 Future Enterprise Resiliency Survey (Wave 2), the report finds that regulations, once seen as legal formalities, have become architectural imperatives. They now shape critical decisions across cloud investments, data governance, and AI deployment. As regulatory pressures increase, enterprises are shifting toward an era of “compliance by design,” where legal foresight is integrated into core technology strategies.
“As AI accelerates digital transformation across Asia/Pacific, enterprises can no longer afford to treat data privacy and cybersecurity regulations as legal afterthoughts,” says Sakshi Grover, senior research manager, Cybersecurity Products and Services, IDC Asia/Pacific. “These mandates are now strategic levers, influencing everything from cloud architecture to AI model governance. Enterprises must embed regulatory foresight into every technology decision to remain agile, trusted, and globally competitive.”
More than 60% of enterprises across Asia/Pacific are already experiencing moderate to significant disruption to their IT operations due to evolving data privacy, cybersecurity, and AI regulations, according to the IDC report, Regulatory Turning Point: How Data Privacy, Cybersecurity, and AI Laws Are Reshaping Enterprise Strategy in Asia/Pacific.
Sakshi Grover, senior research manager, Cybersecurity Products and Services, IDC
The report highlights how a rapidly shifting and fragmented regulatory environment is driving a fundamental reset in enterprise technology and risk strategies. From data localization mandates to AI governance frameworks, organizations in markets such as India, Singapore, Japan, and Australia are now embedding regulatory foresight into their digital infrastructure. These mandates increasingly go beyond compliance—strengthening operational resilience, digital sovereignty, and customer trust.
Drawing on insights from IDC’s 2024 Asia/Pacific Security Survey and 2025 Future Enterprise Resiliency Survey (Wave 2), the report finds that regulations, once seen as legal formalities, have become architectural imperatives. They now shape critical decisions across cloud investments, data governance, and AI deployment. As regulatory pressures increase, enterprises are shifting toward an era of “compliance by design,” where legal foresight is integrated into core technology strategies.
“As AI accelerates digital transformation across Asia/Pacific, enterprises can no longer afford to treat data privacy and cybersecurity regulations as legal afterthoughts,” says Sakshi Grover, senior research manager, Cybersecurity Products and Services, IDC Asia/Pacific. “These mandates are now strategic levers, influencing everything from cloud architecture to AI model governance. Enterprises must embed regulatory foresight into every technology decision to remain agile, trusted, and globally competitive.”
Regional Fragmentation, Global Implications
While some countries, like South Korea, Singapore, and Japan, are aligning closely with GDPR-style frameworks, others such as India, Indonesia, and Vietnam are advancing sovereignty-driven mandates tailored to domestic priorities. Key regional developments include:
India’s DPDP Act (2023): Establishes consent-first data governance, introduces DPO requirements, and imposes localization in sensitive sectors.
Singapore’s PDPA and Cybersecurity Act: Expanding breach notification and third-party oversight while piloting AI governance frameworks.
Australia’s Privacy Act Reforms (2025): Emphasize algorithmic accountability, data portability, and steep penalties (up to AUD50 million).
China’s AI and Cybersecurity Regulations: Enforce AI explainability, content controls, and mandatory data localization for CIIs.
What Enterprises Should Prioritize Going Forward
1. Think Strategically: Shift from checkbox compliance to proactive governance, especially around AI explainability, consent orchestration, and privacy engineering.
2. Act Decisively: Operationalize mandates with localized control frameworks, automated breach reporting, and real-time auditability.
3. Invest Intelligently: Adopt infrastructure that supports dynamic compliance such as data discovery, de-identification tools, and AI governance platforms.
IDC’s research urges organizations to rethink their vendor ecosystems, compliance tooling, and cross-border data strategies. The rise of AI amplifies these stakes, making regulatory intelligence a boardroom concern.
This IDC Perspective offers a deep dive into how the convergence of data privacy, cybersecurity, and AI laws is transforming technology planning across Asia/Pacific. It examines legal developments across 14 countries, identifies vertical-specific challenges, and provides actionable guidance for buyers navigating regulatory complexity.
To learn more, visit: www.idc.com