ASEAN-SPORTS | Technology | BANGKOK: SEA emerges as AI investment hub in 2024
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BANGKOK (ANN/VIET NAM NEWS) – Southeast Asia (SEA) secured over USD30 billion in artificial intelligence (AI) infrastructure investments during the first half of 2024, according to the 2024 e-Conomy SEA Report by Google, Temasek, and Bain & Company.
Since January 2023, tech giants including Microsoft, Google, and Amazon have pledged USD50 billion to the region’s AI sector, underscoring Southeast Asia’s growing prominence as a hub for AI innovation. Analysts project this shift could significantly boost regional economic growth, with the Association of Southeast Asian Nations (ASEAN) forecasting that AI could increase the region’s gross domestic product (GDP) by 10-18 per cent, potentially adding USD1 trillion by 2030.
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Memento Maxima Digital MarketingNational and regional AI strategies
Recognising AI’s transformative potential, several Southeast Asian governments have launched national strategies to accelerate AI integration. Indonesia’s National Strategy for AI and Singapore’s NAIS 2.0 are among the standout initiatives, focusing on embedding AI across industries. Singapore has further committed USD70 million to develop AI models tailored to regional cultures, showcasing its commitment to leveraging technology for localised solutions.
At a regional level, ASEAN has initiated the Guideline on AI Governance and Ethics and formed the ASEAN Working Group on AI (WG-AI) to foster collaboration and ensure ethical AI use among member states.
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Private sector driving adoption
The private sector has played a pivotal role in AI adoption, with regional tech giants like Gojek, Grab, and Lazada embedding AI into their business models. The 2024 e-Conomy SEA Report highlights that 54 per cent of generative AI projects in the region progress from concept to production within six months, while 71 per cent achieve a return on investment (ROI) within the first year, showcasing the rapid impact of AI-driven innovations.
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Challenges and opportunities
To fully capitalise on AI’s transformative power, Southeast Asia must adopt a unified, strategic approach. This includes enhancing digital infrastructure, fostering public-private partnerships, and implementing vocational programmes to reskill and upskill the workforce for the AI-driven future. Collaborative efforts at national and regional levels will be crucial to establishing Southeast Asia as a global AI powerhouse.
With investments surging and both public and private sectors aligning their goals, Southeast Asia is poised to become the next frontier for AI innovation and economic growth.
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