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With technological developments, the resolution of the display systems is increasing, causing image data to increase. Several technologies are aiding in optimizing these data during transmission and storage while maintaining quality. Still, the internal data transmission for accessing the memory sub‐system during reading and writing cycles consumes significant power while requiring large memory for storage, which is inefficient, especially for portable displays. Hence, this work investigates the feasibility of reducing data through approximation for images in different formats and resolutions for human and computer vision based applications. Different image quality assessment metrics are utilized for performance evaluations with optimum image quality assessment selection according to application requirements. In addition, the feasibility analysis is conducted for three different applications as examples of computer vision. The experimental analysis highlights theoretical and industrial importance by showing that image data can be reduced from 25.0% to 62.5%, while satisfying requirements for HVS‐based and computer vision‐based applications. [ABSTRACT FROM AUTHOR]