ASEAN doesn’t need to win the AI race, it needs to run it together

The world's conversation on artificial intelligence (AI) is dominated by a few key players, primarily the United States, China, and a few European regulatory bodies. Southeast Asia, however, is largely overlooked in these discussions, typically only mentioned when it comes to attracting data centre investments. This framing misses the bigger picture: ASEAN's real challenge is not individual country's ability to outspend global giants like the US or China on AI but rather whether the region can collaborate to build a unified intelligence layer that serves its entire economy, estimated to host around 700 million people.

The source emphasizes the significant role of micro, small, and medium enterprises (MSMEs) in Southeast Asia, accounting for over 97% of all businesses and 85% of the total employment. These firms, often operating in local languages and solving small-scale daily problems, represent the most consequential market in the region. The source argues that ASEAN can lead globally not by competing for the biggest AI models but by developing applied intelligence tailored to these businesses.

The building blocks for this regional AI initiative already exist, with Singapore investing in SEA-LION, Sea Group's Sailor2, Vietnam's AI law, Malaysia's ILMU, and other regional efforts. However, these initiatives lack coordination. The source suggests establishing a unified ASEAN AI think tank, a shared research institution, and an open framework for contributing according to each member's strengths.

This collaboration could address critical bottlenecks such as talent shortages and skills gaps. The source also points out the region's potential to benefit from stronger intra-ASEAN trade, currently at only 21% of total trade, with the European Union leading at 60%. By prioritizing regional partnerships for AI services, data infrastructure, and technical talent, ASEAN could fundamentally change the economics of AI deployment.

The source concludes by highlighting how every automated task frees up a life for more meaningful pursuits, and that empowering millions of small businesses with AI can create a ripple effect of resilience and growth across the region.