What Unique Advantage Does ASEAN Have in the AI Race?
Southeast Asia’s ASEAN region is racing for AI dominance, and a significant asset in this competition is its demographics. The region is home to over 200 million individuals aged 15 to 35 years. This tech-savvy youth demographic may likely ease the transition toward technological advancements.
Do Young Populations Bring Economic Benefits?
The youthful population in ASEAN could be a boon. Jun Le Koay from Access Partnership asserts that AI has the potential to drastically boost productivity across various sectors, ultimately elevating worker incomes. Furthermore, as industries adopt AI technologies, there will be a demand for new jobs that require AI skills, thus allowing lower-income individuals to enhance their skills and transition to better-paying roles.
Is the Existing Infrastructure Sufficient for AI Adaptation?
Southeast Asia has made strides in improving internet access, and this is crucial in building a digitally-savvy populace. Smartphone ownership in ASEAN nations ranges from 65% to 90%, creating a foundation for quick AI adoption.
Are ASEAN Countries Strategizing for AI?
Each of the ten ASEAN countries has completed their own national AI strategy. For instance, Singapore was one of the first nations to unveil its strategy in 2019, which has since evolved to include plans to expand its AI workforce to 15,000 and establish research and development centers.
Are There Any Noteworthy AI Initiatives in ASEAN?
Singapore, for example, inaugurated its AI Center of Excellence for the Manufacturing Sector to promote AI integration within supply chains. The government has committed $741 million over five years to further its AI agenda. It also topped Salesforce’s 2023 Asia-Pacific AI Readiness Index, which assessed 12 states.
Vietnam is leveraging its assembly, testing, and packaging capabilities to fulfill global chip demands. The country introduced PhoGPT, an open-source language model designed for Vietnamese users as an alternative to ChatGPT.
Cambodia’s AI strategy focuses on harnessing technology for "social good" and agricultural technology, particularly beneficial to a sector that constituted 22% of its GDP in 2018.
Are There Challenges in Realizing AI Aspirations?
Despite the optimism, ASEAN confronts hurdles, especially the lack of advanced technical talent and established digital infrastructure. Grace Yuehan Wang from the London School for Economics emphasizes the need for a solid digital infrastructure, advanced technical education, and successful industrial and academic collaborations.
How Does Talent Shortage Affect AI Goals?
A lack of skilled professionals is a significant barrier to advancing AI in ASEAN. The region's shortage of AI talent jeopardizes its ability to effectively develop, implement, and maintain AI systems, limiting its potential to benefit from AI's transformative capabilities.
What Are the Infrastructure Shortcomings?
Countries in the region that are not as digitally advanced as Singapore face difficulties in becoming AI-ready and fully executing an AI policy. Kristina Fong from ASEAN Studies Centre warns that several regulatory elements need to be robust before credibly adopting AI.
What Role Does Foreign Investment Play in ASEAN's AI Landscape?
Foreign direct investment (FDI) is a crucial aspect of how Southeast Asian countries approach AI. Investments from global entities, including the United States, China, Japan, Germany, and the UK, have been targeted at AI firms in the region.
How Does FDI Impact AI Development?
FDI is crucial for developing AI infrastructure and expanding AI companies in Southeast Asia. Singapore, for example, has attracted 81% of the investment transactions observed in Southeast Asian AI companies.
How Does FDI Mitigate Talent and Infrastructure Shortages?
Foreign investment helps alleviate the talent and infrastructure shortages faced by Southeast Asia. For example, Google's $5 million grant to the ASEAN Foundation for developing AI literacy is an initiative supported by international players. Investments in digital infrastructure, such as high-speed internet and 5G, are also vital for AI prevalence.
Are There Risks and Advantages of Diverging from EU AI Regulations?
ASEAN's guide to AI governance and ethics diverges from the EU's approach, which had attempted to incentivize adherence to its regulations. This divergence presents both risks and benefits.
What Are the Advantages of the ASEAN Approach?
ASEAN's voluntary and light-touch regulatory style aims to foster a business-friendly climate. Companies can operate without stringent regulations that might stifle innovation.
What Are the Risks of Diverging from EU Regulations?
The divergence may complicate the establishment of a global standard for AI governance, leading to inconsistencies in cross-border operations.
How Can ASEAN Countries Collaborate on AI Governance?
To harmonize national AI strategies and foster regional cooperation, ASEAN countries might consider several strategies.
What Governance Frameworks Are Effective?
ASEAN has published the "ASEAN Guide to AI Governance and Ethics", a non-binding set of guidelines to design, develop, and deploy AI systems. This can create some alignment among member states.
How Can Collaborative Projects Foster AI Development?
Encouraging collaborative projects can help unify efforts. Singapore and Malaysia's partnership with Nvidia on AI initiatives could serve as a model.
What Are the Common Priorities for AI in ASEAN?
Identifying common priority areas for AI, like health services and education, can facilitate coordinated efforts among member states.
In conclusion, while ASEAN countries have a youthful demographic and strategic investments to advance their AI ambitions, they also face considerable challenges like a talent gap and infrastructure needs. Foreign investment plays a vital role in shaping their AI strategies, and diverging from EU regulations offers both risks and opportunities. By collaborating on their AI strategies, ASEAN can ensure a cohesive digital future for the region.
