A woman (right) adjusts the Philippine flag before the 51st Association of Southeast Asian Nations (ASEAN)-South Korea Ministerial Meeting in Singapore on August 3, 2018.
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Southeast Asia’s emerging economies are vying to become top artificial intelligence hubs—a race that has brought them together while quietly competing against each other.
The Association of Southeast Asian Nations (ASEAN) is composed of 10 countries with a total population of 672 million. It already has certain advantages compared with Europe or the United States.
The population aged 15 to 34 exceeds 200 millionthe region’s young and largely tech-savvy population positions the region to adapt to future technological advances. Coupled with government support for accelerating the development of artificial intelligence in the region, the rewards could be huge for local workers.
“Artificial intelligence can significantly improve productivity across industries, and this increase in efficiency can lead to increased incomes for all workers,” said Jun Le Koay, a consultant at Access Partnership and an author of the research paper.Southeast Asia Advantage: Emerging AI Leaders” told CNBC.
“In addition, as industries increasingly adopt AI technology, new jobs requiring AI skills continue to emerge. This evolution creates opportunities for low-income people to acquire new skills and transition into higher-paying positions,” he said.
Le Koay added that the AI boom offers Southeast Asia the opportunity to leverage its existing infrastructure. Koay believes that ASEAN countries have made “tremendous progress” in significantly increasing online access over the past decade, which has “created a pool of digital natives ready to adopt artificial intelligence and innovate.”
Smartphone penetration rates in ASEAN countries range from 65% to 90%the adoption of artificial intelligence is expected to take shape rapidly.
Grace Yuehan Wang, CEO of Network Media Consulting and a scholar at the London School of Economics, believes that no ASEAN country will take the lead in the artificial intelligence competition in the short term.
“As a region, ASEAN has demonstrated strong GDP growth rates in recent years and will undoubtedly be one of the most economically prosperous regions in the world for the foreseeable future,” she told CNBC.
Developed digital infrastructure, education of high-level technical talents in the technology industry including artificial intelligence, and world-class universities (STEM – Science, Technology, Economics and Mathematics – and comprehensive universities), successful industry-university-research cooperation are some of the factor.
Competition in artificial intelligence among ASEAN countries “mainly lies in attracting foreign investment and cooperation with world-class universities,” Wang added.
Singapore takes the lead
The ASEAN Club consists of ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. All 10 countries have published national AI strategies.
Singapore is one of them First to unveil its vision in 2019. The island nation updated its plans in December 2023.
Artificial intelligence adoption is rising in Singapore, with 52% of workers in the country using the technology at work, according to Slack’s New Workforce Index.
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The Manufacturing Artificial Intelligence Center of Excellence opened in September to integrate artificial intelligence throughout the supply chain.
Singapore’s AI mission gets state supportthe government has committed to investing S$1 billion (US$741 million) over the next five years.
China appears to have had a head start “thanks to its research and development, economy, education system and international business status,” Wang said.
Singapore tops the list for Salesforce Asia Pacific Artificial Intelligence Readiness Index 202312 countries were assessed. The other ASEAN members – Malaysia, Indonesia, Vietnam, Philippines and Thailand – ranked lower, between eighth and 12th.
Localized artificial intelligence for developing countries
Singapore’s strength does not appear to be deterring the aspirations of its immediate neighbours.
Vietnam is betting on the development of artificial intelligence, leveraging its assembly, testing and packaging capabilities to meet global demand for chips. of the country national strategy Including the ambition to develop into an ASEAN artificial intelligence solution research and development center by 2030. US$1 billion investment in South Korea’s manufacturing industry extended to 2025.
In 2023, VinAI, part of the cross-sector conglomerate Vingroup, launched PhoGPT, an open source language model designed specifically for Vietnamese users.
ChatGPT’s localized alternative shows that “English-dominated AI models cannot be applied to all social and cultural contexts, and on a deeper level it demonstrates how to overcome existing constraints on technologically weaker regions and countries.” efforts to address concerns about widening divides and inequality,” Wang said.
German AI translation startup DeepL is already tapping into the region’s “rich linguistic diversity,” which chief revenue officer David Parry-Jones said is an “asset that can foster rich cultural exchange and deepen regional identity.”
Parry-Jones told CNBC that the European startup hopes to provide ASEAN artificial intelligence language models to boost manufacturing in the region, translate legal documents or support multilingual customer service centers.
“We know companies and governments are looking for best-in-class, context-sensitive translation tools so they can continue to grow rapidly without being hampered by language barriers,” he said.
Other developing countries are also looking to apply artificial intelligence to traditional labor-intensive industries.
For example, Cambodia’s 60 page report It details how the developing country is using artificial intelligence to achieve “social good” and agricultural technology to promote the development of an industry that accounts for 22% of Cambodia’s GDP and employed about 3 million people in 2018.
ASEAN developing countries that are less digitized than Singapore face greater challenges in preparing for AI, let alone achieving comprehensive AI policies.
“There need to be several complete and robust regulatory foundations before AI can be conducted credibly,” Kristina Fong, principal researcher on economic affairs at the ASEAN Research Center at the Yusof Issa Institute of Southeast Asia, told CNBC.
She added that “without any agency oversight, the adverse impacts of artificial intelligence on users could be rapid and severe” and that conversations at the state level were needed to “effectively manage these rapid developments with minimal social harm.”
different from Europe
ASEAN countries collectively release regional guidelines February Artificial Intelligence Governance and Ethics. A year ago, EU officials toured Southeast Asia trying to persuade them to comply with the EU’s artificial intelligence regulations.
ASEAN countries are not convinced and believe the EU has taken regulatory measures too quickly without fully understanding the risks of artificial intelligence.
Fang said the Asian group was at odds with Europe on AI governance and that a “moderate approach seemed best for the region”.
“This is mainly due to several factors, including that unlike the EU, ASEAN does not have a central legislative body, and there are significant differences in digital capabilities and regulatory capabilities among ASEAN member states,” she said, adding that Southeast Asia’s approach to artificial intelligence The ethical framework is “more of a practical guide” than a strict policy.
Wang said ASEAN’s disagreement over the ethics of artificial intelligence is not necessarily a battle between choosing Western or Chinese approaches. She said international cooperation is at the core of ASEAN’s ethical framework for artificial intelligence.
Wang said the fundamental challenge facing ASEAN countries “is not a technical challenge but a political challenge”, with the Covid-19 pandemic prompting countries to cooperate more closely on mutual trade and diplomacy.
What keeps them on the right track to realize their AI plans is retaining a young, savvy population.
Wang believes that perhaps a national education strategy that complements the AI program might be most effective.