Southeast Asian countries are seeking to become the region's premier AI hub

Emerging economies in Southeast Asia are vying to become a major hub for artificial intelligence — a race that has brought them together, and quietly fighting among themselves.

The Association of Southeast Asian Nations (ASEAN), made up of 10 countries with a combined population of 672 million, already has some advantages over Europe or the United States.

With over 200 million people aged 15 to 34 yearsThe region's young and largely tech-savvy population makes the region adaptable to future technological advances. This, coupled with government support to accelerate AI in the region, could bring significant rewards to local workers.

“AI can significantly improve productivity across industries, and this increase in efficiency can lead to increased income for all workers,” said John Le Quay of the consulting firm Access Partnership and author of the paper.Southeast Asia Advantage: Emerging AI Leader“He told CNBC.

“In addition, as industries increasingly adopt AI technologies, new jobs that require AI skills are emerging. This development creates opportunities for low-income populations to acquire new skills and move into better-paying jobs,” he added.

Low Kuai added that the AI ​​boom provides opportunities for Southeast Asia to leverage its existing infrastructure. Quay believes ASEAN countries have made “huge strides” in dramatically increasing internet access over the past decade, “creating a digital society ready to embrace and innovate with AI.”

With smartphone adoption ranging between 65% to 90% in ASEAN countriesThe adoption of artificial intelligence is expected to take shape rapidly.

Grace Yuhan Wang, CEO of Network Media Consulting and a researcher at the London School of Economics, does not expect any ASEAN country to lead the AI ​​race anytime soon.

“ASEAN as a region has shown a strong GDP growth rate in recent years and is undoubtedly one of the most economically prosperous blocs in the world for the foreseeable future,” she told CNBC.

Cutting-edge digital infrastructure, education of “top-level technical talent in the technology industry including AI, as well as world-class universities (both science, technology, economics and mathematics – and comprehensive universities), and successful industrial and research collaboration are some of the things,” she said. It is still missing in the ASEAN AI ecosystem.

Wang added that the AI ​​competition among ASEAN countries “is largely aimed at attracting foreign investment and cooperation with leading universities globally.”

Singapore steals a march

Ten countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – make up the ASEAN Club. All ten countries have published national AI strategies.

Singapore was among First to reveal his vision in 2019. The island nation updated its plans in December 2023. Ambitions include expanding its AI workforce to 15,000 – three times the current number – as well as establishing research and development centres.

The AI ​​Center of Excellence for the Manufacturing Sector opened in September, with the aim of integrating AI across supply chains.

Singapore's AI mission has state supportThe government promised to invest one billion Singapore dollars ($741 million) over the next five years.

Wang said the country appears to have stolen a march “thanks to its research and development, economy, education system and international business standing.”

Singapore topped Salesforce Asia Pacific AI Readiness Index 2023which evaluated 12 countries. The other member states of the Association of Southeast Asian Nations (ASEAN), namely Malaysia, Indonesia, Vietnam, the Philippines and Thailand, ranked lower on the list, in positions eight to twelfth.

Translated artificial intelligence for developing countries

Singapore's power does not seem to have stopped the ambitions of its near neighbours.

Vietnam is relying on developments in the field of artificial intelligence, and exploiting its strength in assembly, testing and packaging capabilities while meeting the global demand for chips. The country National strategy It includes ambitions to develop into an ASEAN hub for research and development of AI solutions by 2030. For example, the country has already attracted $1 billion investment from manufacturing in South Korea extending through 2025.

In 2023, VinAI, part of the multi-sector conglomerate Vingroup, unveiled an open source language model specifically designed for Vietnamese users called PhoGPT.

The local alternative to ChatGPT notes that “English-dominant AI models cannot be applied to all social and cultural contexts, while at a deeper level, they illustrate efforts to overcome concerns about widening gaps and inequalities that exist between less technologically powerful regions and countries.” Wang said.

German AI translation startup DeepL is already tapping into the region's “rich linguistic diversity,” which chief revenue officer David Parry-Jones says is “an asset, fostering a wealth of cultural exchange and deepening regional identity.”

Barry Jones told CNBC that the European startup wants to provide AI language models to the Association of Southeast Asian Nations (ASEAN) that could boost manufacturing, translate legal documents or support multilingual customer service centers in the region.

“We know that companies and governments are looking for best-in-class context-sensitive translation tools so they can continue to grow quickly without falling into the trap of language barriers,” he said.

Other developing countries are looking to harness artificial intelligence in traditionally labor-intensive industries.

For example, Cambodia 60-page report It details how the developing country wants to harness artificial intelligence for “social good” and agricultural technology, boosting the sector that accounts for 22% of Cambodia's GDP and employs about 3 million people in 2018.

ASEAN developing countries that are not as digitally developed as Singapore face greater challenges in becoming AI ready, let alone achieving a full AI policy.

“There are many regulatory building blocks that need to be sound and robust before we can credibly embark on AI,” Christina Fong, principal researcher for economic affairs at the Yusuf Ishak Institute’s Center for ASEAN Studies (ISEAS), told CNBC.

She added that “the harmful effects of AI on users can come fast and hard without any institutional oversight” with a nationwide conversation needed to “effectively manage these rapid developments with minimal societal harm.”

far from Europe

ASEAN countries have collectively issued a regional guide to Artificial Intelligence Governance and Ethics in February. A year ago, European Union officials, touring Southeast Asia, tried to persuade them to follow EU AI regulations.

Instead of being impressed, ASEAN claimed that the EU was too quick to adopt regulations without fully understanding the risks of AI.

Fong said the Asian bloc has moved away from Europe in terms of AI governance, as a light-hearted approach appears to be more appropriate for the region.

“This is mainly due to several factors including the lack of a central legislative body in ASEAN, unlike the European Union, as well as notable differences in digital capabilities and regulatory capabilities among ASEAN member states,” she said, adding that Southeast Asia’s approach to the framework AI ethics “serves more as a practical guide,” rather than as a strict policy.

Wang said the difference in AI ethics in ASEAN is not necessarily a battle between choosing the Western approach or the Chinese approach. International cooperation is at the heart of ASEAN's AI ethics framework, she said.

Wang said the fundamental challenge facing ASEAN countries is “not technological, but political,” as the COVID-19 pandemic pushes countries to work more closely together in mutual trade and diplomacy.

What will keep them on track to achieve their AI plans is maintaining their smart young population.

Wang believes that a national education strategy complementary to AI plans may be more effective.