AI is not the advantage, build what competitors cannot copy

AI technology is not a guaranteed advantage for businesses. While it can speed up processes and tasks, it can also be easily replicated by competitors. The real question for small and medium-sized enterprises (SMEs) in Southeast Asia is not about how to use AI, but what AI can help them create that competitors cannot easily duplicate.

For example, a Thai food business could reduce processing waste, an Indonesian supplier could improve machine maintenance, and a Singapore company could develop a better system for a specific industry. These companies do not need to become large tech firms to benefit from AI; they simply need to use it close to their customers, work, and problems.

However, speed alone is not enough; a faster copy is still just a copy. The real advantage comes from unique knowledge, expertise, and the intangible aspects of a business that cannot be easily copied. This could include better formulas, manufacturing methods, workflows, or features that solve difficult problems. These aspects may not be easily visible but can result in lower prices, higher quality, or faster delivery.

SMEs often possess these assets without realizing they are intellectual property, referring to them as experience, know-how, or customer loyalty. Businesses must decide how to protect these valuable aspects. They can either keep them secret as trade secrets, protected through confidentiality agreements, or disclose them as patents, which provide a fixed-term monopoly in exchange for public disclosure.

The choice depends on the nature of the invention, its uniqueness, and the ease with which competitors could replicate it. Ultimately, the focus should be on solving problems and creating value, not on paperwork or legalities.