Companies in Central Asia and the Caucasus Accelerate Digital Transformation

Companies in Central Asia and the Caucasus Accelerate Digital Transformation

These conclusions were reached by KPMG analysts in the regional Global Tech Report 2026. The global survey covered 2,500 IT leaders from 27 countries, while the regional sample included 72 companies from Central Asia and the Caucasus. For comparison, the study used indicators from 224 global technology leaders generating returns of more than 200% on their IT investments.

From Waiting to Experimentation

Companies in the region are becoming less inclined to wait until technologies are fully proven. This wait-and-see strategy is chosen by 33% of organisations, compared with 44% globally. Rapid but selective adoption is preferred by 43%, versus 36% worldwide.

Some 44% of companies in the region proactively experiment with new technologies, compared with 21% globally. Structured pilots are used by 73% of organisations in Central Asia and the Caucasus, versus 63% globally and 57% among technology leaders.

Technology Is Becoming a Source of Revenue

For companies in the region, the main expected outcome of digitalisation is the creation of new revenue streams. Accelerating innovation and bringing products to market ranks second, followed by improving operational efficiency.

Revenue growth is cited as a benefit of technology by 43% of companies in the region, compared with 30% globally. Faster product launches are mentioned by 39%, versus 28% worldwide.

At the same time, 99% of companies in Central Asia and the Caucasus consider advanced technologies the main source of competitive advantage over the next three years, compared with 90% globally. Some 91% of companies reported revenue growth over the past five years, while 93% expect their revenue to increase over the next 24 months.

Reducing IT costs ranks last, in 11th place, among the expected outcomes of digital transformation.

IT Budgets Are Directed Towards Development

Almost three-quarters of large companies in the region invest between $100 million and $500 million in technology each year. In particular, 33% allocate between $100 million and $249.9 million, while another 40% invest between $250 million and $499.9 million.

On average, 21% of IT budgets is allocated to supporting existing systems, 41% to development and 31% to transformation. Globally, the corresponding shares are approximately 34%, 34% and 26%.

This structure accelerates business renewal but also creates risks of underinvestment in core infrastructure, the accumulation of technical debt and an increase in operational disruptions. When IT budgets are reduced, companies in the region are primarily concerned about lower operational efficiency, failure to meet ESG targets and growing technical debt.

Cybersecurity and Data Are the Main Priorities

The most striking difference in the region is the growth of investment in cybersecurity. A significant increase in cybersecurity budgets was reported by 63% of companies in Central Asia and the Caucasus, compared with 41% globally. Particularly strong growth is observed in Georgia and Uzbekistan.

Budgets for data and analytics are being increased by 82% of companies in the region, compared with 73% globally. Investment in AI-enabled automation is rising at 81% of companies, versus 76% worldwide.

Some 87% of companies in the region plan to increase investment in digital twins and advanced modelling, compared with 72% globally. In Uzbekistan, 100% of surveyed organisations gave this response.

Half of Companies Do Not Measure the Effectiveness of IT Projects

Companies in the region give high ratings to the maturity of data management — 93%, compared with 85% globally — and cybersecurity — 89%, versus 86% worldwide.

However, only 50% of companies in Central Asia and the Caucasus regularly compare the results of IT initiatives with business objectives, compared with 65% globally. This means that 50% of companies in the region do not regularly measure the effectiveness of IT projects, versus 35% worldwide.

At the same time, 83% of organisations use formal procedures to assess new technologies, while 88% believe that technology increases investment value. The main problem lies not in launching projects, but in demonstrating their long-term economic impact.

The Region Is Ahead of the World in Industrial-Scale AI Adoption

Already 53% of companies in Central Asia and the Caucasus have deployed AI across several use cases and are generating measurable returns. Globally, 24% of organisations have reached this stage.

Another 29% of companies in the region are already creating value with AI but have not yet developed it into a full-scale production system. The main challenge is to move from isolated solutions to an integrated AI governance model combining infrastructure, data, security, risk control and performance measurement.

The Share of Digital Labour Will Continue to Grow

Today, around 50% of companies’ technological resources in the region are provided by in-house employees, 30% by digital workers, including AI agents and automation tools, and 21% by external contractors.

By 2028, the share of digital workers could rise to 40%, while the share of in-house employees may decline to 47% and external resources to 14%. This indicates a shift towards a model based on automation and internal capabilities.

Central Asia and the Caucasus can no longer be regarded as late adopters of technology. Companies are launching pilots, deploying AI and directing investment towards new products and revenue streams faster than the global market.

The next stage will depend on companies’ ability to turn individual technological successes into a sustainable system: regularly measuring returns, maintaining core infrastructure, managing technical debt, scaling AI and preparing employees to work in a hybrid environment.


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