IBM Study: More companies turning to open-source AI tools to unlock ROI

Artificial intelligence (AI) continued to disrupt industries in 2024, reshaping how organisations manage data, engage with customers, and optimise operations.

A survey by IBM and Morning Consult, in collaboration with Lopez Research, gathered insights from over 2,400 IT decision-makers across 12 countries to assess AI investment strategies and future plans.

Findings reveal that 89% of surveyed organisations intend to maintain or increase their AI investments in 2025, with a strong focus on efficiency and scalability.

“They want faster ROI, which is why they are moving from an experimental to a more strategic approach in AI investments,” says Dickson Woo, Country General Manager and Technology Leader at IBM Malaysia.

When asked about their 2025 AI optimisation strategies, IT leaders identified managed cloud services (51%), hiring specialised talent (48%), and leveraging open-source tools (48%) as key priorities.

Open-source adoption, in particular, is gaining traction due to its cost-effectiveness, community-driven improvements, and flexibility in AI deployment.

As AI evolves, businesses are shifting focus from large language models (LLMs) to Small Language Models (SLMs) and Agentic AI.

Unlike their larger counterparts, SLMs offer cost-effective, adaptable solutions that enhance business efficiency while reducing computational demands.

“The LLM model doesn’t always provide a faster ROI because it serves broader goals. Companies today are more prudent, prioritising AI solutions that address specific business needs,” added Woo.

Agentic AI is also emerging as a game-changer, enabling AI systems to make autonomous decisions, execute complex tasks, and interact with external environments with minimal human intervention.

Adoption is growing across financial services, healthcare, manufacturing, and customer service, where automation and predictive analytics are driving operational improvements.

IBM is at the forefront of this transformation with its IBM Granite models, offering scalable AI solutions with 8 billion and 2 billion parameters.

These models, integrated into the watsonx platform, provide businesses with the tools to deploy AI efficiently while ensuring transparency and collaboration.

Looking ahead, Malaysia’s AI-driven future hinges on three key pillars: strengthening public-private partnerships, developing a robust digital talent pipeline, and establishing clear AI regulations.

By fostering a sustainable AI ecosystem, businesses can unlock new growth opportunities and drive innovation in the digital economy.

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