Artificial intelligence is forecast to accelerate innovation in Asia Pacific over the next few years, however, only half of today’s firms are using AI, according to a report. 

The findings by Microsoft and International Data Corporation reveal that just 41% of companies in the region have adopted this technology, even though decision makers surveyed agree AI is important in order to stay competitive, CNBC reports. 

Ralph Haupter, president of Microsoft Asia says one of the principal stumbling blocks stopping firms from accepting AI is skills shortages. He told CNBC on Wednesday: "I think at this stage, it's skills shortage. And, really, getting the first step done.”

The report indicated that although a majority of businesses stated they were keen to invest and retrain staff, many didn’t have the time and a knowledge or understanding of where to begin. In addition, a number of those polled said there were no suitable training programs for them to adopt.

According to a previous report from consulting firm McKinsey, automation would increase demand for advanced tech skills, as well as improved cognitive skills such as creativity and complex information processing, while demand for physical and manual skills would fall.

Mr Haupter added that the perception of AI as a threat to jobs is turning into curiosity about the technology.

The Microsoft Asia president told CNBC’s Squawk Box: "People are now actually understanding that AI will be a way to augment the jobs and enrich the experience and take out non-productive stuff. I think we're on a very good path on AI making huge impact to society.”

Microsoft and International Data Corporation polled business leaders and workers in 15 Asia Pacific countries for the "Future Ready Business: Assessing Asia's Growth Potential Through AI" report.

Some of the key reasons cited by firms for adopting AI were innovation, competitiveness, customer engagement, higher margins and staff productivity.

Victor Lim, vice president for consulting operations at IDC Asia Pacific, said in a statement: "Asia Pacific is not ready yet for AI,” going on to say that businesses have to make ongoing investments in AI technology, often without immediate returns.

Mr Lim added: "There is an urgent need for talents and tools to develop, deploy and monitor AI models, along with the availability of a robust data infrastructure with the adequate governance.”

Moreover, China has made an assertive drive to dominate the AI space, via public and private investments. Beijing aims to lead AI innovation by 2030.

Mr Haupter went on to say: "I think there's a lot of engineering capacity and skills in China.”