Southeast Asia has become the latest battleground in the global race to harness the power of artificial intelligence (AI). With a combined population of 672 million people and a high proportion of tech-savvy youth, the 10 countries of the Association of Southeast Asian Nations (ASEAN) are vying to position themselves as leaders in the AI revolution. While united under the ASEAN umbrella, these nations are also quietly competing for dominance in the AI sector.
A Youthful, Tech-Savvy Population
Southeast Asia boasts a youthful demographic, with over 200 million people aged between 15 and 34. This digitally native population has been primed for technological advances thanks to government-backed initiatives to expand internet access and smartphone adoption rates of 65% to 90% across the region. This combination of connectivity and adaptability offers ASEAN nations a significant competitive edge over Western markets like Europe and the United States.
Jun Le Koay, a researcher from the consultancy Access Partnership, highlights how AI can uplift workers at all income levels in the region. “AI can significantly improve productivity across industries, creating opportunities for low-income populations to acquire new skills and transition to better-paying positions,” Koay said.
Singapore Leading the Charge
Singapore has emerged as the frontrunner in the regional AI race. The city-state was among the first ASEAN countries to outline a national AI strategy in 2019 and has continued to refine its vision. Its government has committed $741 million to AI development over the next five years, aiming to triple its AI workforce to 15,000 and establish advanced research and development centers.
Singapore’s robust digital infrastructure, education system, and international business standing have propelled it to the top of Salesforce’s 2023 Asia Pacific AI Readiness Index. With 52% of workers already using AI in their jobs, Singapore is well ahead of its neighbors in AI adoption.
Vietnam’s Push for Localization
While Singapore dominates, other ASEAN nations are leveraging their unique strengths to carve out niches in the AI landscape. Vietnam, for instance, is focusing on localized AI solutions. In 2023, the Vietnamese conglomerate Vingroup launched PhoGPT, an open-source language model tailored for Vietnamese users. By addressing the limitations of English-dominant AI models, Vietnam aims to reduce inequalities and enhance accessibility for its population.
Vietnam’s AI ambitions extend beyond language models. The country has positioned itself as a hub for assembly, testing, and packaging, particularly for the semiconductor industry. A $1 billion investment from South Korea in AI-related manufacturing further underscores Vietnam’s growing role in the region.
Cambodia: AI for Social Good and Agriculture
Cambodia, a developing ASEAN member, has adopted a more focused approach to AI. Its national strategy emphasizes using AI for “social good,” particularly in agriculture, which accounts for 22% of its GDP. By harnessing AI to modernize its agricultural sector, Cambodia hopes to boost productivity and support its rural population.
A Balancing Act in AI Governance
ASEAN countries have taken a cautious but collaborative approach to AI governance. In February 2024, the bloc released a regional guide to AI ethics, diverging from the stricter regulatory frameworks of the European Union. Instead, ASEAN has opted for a “light-touch” governance model that prioritizes practical guidance over rigid policies, reflecting the region’s diverse digital capabilities.
Kristina Fong from the ASEAN Studies Centre at the ISEAS-Yusof Ishak Institute warns of the risks of insufficient regulation. “Adverse effects of AI to users could come fast and hard without any institutional oversight,” she said, urging governments to establish robust regulatory frameworks to minimize societal harm.
Challenges Ahead
Despite their ambitions, ASEAN nations face significant hurdles in becoming global AI leaders. Grace Yuehan Wang, CEO of Network Media Consulting, notes that many countries in the region lack the advanced digital infrastructure, technical talent, and research collaborations needed to compete with global AI hubs. “The fundamental challenge ASEAN countries face is not a technological one, but a political one,” she said, emphasizing the need for stronger regional cooperation.
The Path Forward
For ASEAN nations to achieve their AI aspirations, they must focus on equipping their young populations with the skills needed to thrive in an AI-driven economy. National education strategies aligned with AI goals could play a crucial role in developing the region’s talent pool. As the global AI landscape evolves, Southeast Asia’s youthful and dynamic population could be its greatest asset.
As countries like Singapore, Vietnam, and Cambodia forge ahead with their AI strategies, it remains to be seen how the region will balance collaboration with competition. What is clear, however, is that Southeast Asia is poised to play a significant role in shaping the future of artificial intelligence.
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