In the Looking East Podcast with Roger Moyes, AIAPI President Kelly and Board Director Peter laid out a clear reality that AI in Southeast Asia is already here. However, the region’s progress is uneven, uncoordinated, and accelerating fast.
Uneven Growth, Massive Upside
AI innovation is booming in capital cities; driven by startups and government–university partnerships. However, outside these hubs, gaps in infrastructure and access remain. Still, the prize is huge. AI could add 10–18% to ASEAN’s GDP by 2030—if growth is inclusive.
Work Is Changing
The discussion touched on AIAPI’s recent publication with LinkedIn on workforce transformation, highlighting how AI is not just a future disruption, it is already reshaping jobs today.
AI systems can now:
- Write software with minimal human assistance
- Automate increasingly complex workflows
- Reduce reliance on traditional roles in tech and services
This shift is already impacting major companies. Firms like IBM and Salesforce have felt pressure as AI changes how software is built and deployed.
At the same time, paradoxes are emerging in hiring. Some employers are reportedly overlooking candidates with AI skills, suggesting a disconnect between leadership understanding and technological reality.
Agentic AI Is Rewriting the Rules
A major theme was the rise of agentic AI; systems that can perform tasks with minimal human input.
This represents a shift in the human-AI relationship:
- Less direct input from humans
- More autonomous task execution by AI
- Increased need for human oversight and verification
Humans are not being removed from the loop but their role is evolving. Instead of doing the work, they are increasingly responsible for ensuring that AI-generated outputs are accurate, ethical, and aligned with real-world needs.
The Biggest Bottleneck: Skills
Peter highlighted that while much of Southeast Asia is digitally literate, significant gaps remain, particularly in rural areas. Access to infrastructure is only part of the problem; the deeper issue is readiness to use AI effectively.
Both speakers stressed the need for:
- AI literacy starting from early education
- Continuous reskilling across the workforce
- Practical, applied learning on top of theoretical knowledge
Education systems must evolve rapidly to keep pace with technological change. Without this shift, the region risks widening inequality between those who can leverage AI and those who cannot.
MSMEs: The Critical Frontline
MSMEs form the backbone of Southeast Asia’s economies, yet they face the greatest barriers to AI adoption:
- Limited resources
- Lack of technical expertise
- Uncertainty about where to start
Support systems, whether through government programmes, industry partnerships, or regional initiatives, will be essential to help these businesses adopt AI in meaningful ways.
As Kelly noted, the priority should be enabling companies to integrate AI into real operational workflows.
Bridging Fragmentation Across ASEAN
Another recurring theme was fragmentation across ASEAN in terms of AI readiness, governance, and adoption.
Encouragingly, there are signs of progress:
- Malaysia’s AI Safety Network
- Singapore’s structured AI programmes and frameworks
The challenge now is scaling these efforts across the region. This does not mean copying models wholesale, but adapting them to local languages, contexts, and needs. Building tangible, region-wide programmes will be key to ensuring responsible and inclusive AI adoption.
The Shadow of AGI and the Need for Practicality
Toward the end of the discussion, Kelly referenced ongoing conversations about Artificial General Intelligence (AGI) potentially arriving within the next 1–2 years.
While such projections are debated, they underscore a broader point: the pace of AI development is accelerating beyond traditional planning cycles.
Rather than speculating too far ahead, the focus should remain on:
- Practical skills
- Realistic implementation strategies
- Immediate workforce readiness
- A Defining Moment for Southeast Asia
Southeast Asia at a Crossroads
AI offers the potential to drive unprecedented economic growth and transformation. But without deliberate action, it could also deepen existing inequalities; between countries, cities, and communities.
The path forward is clear:
- Invest in skills and education
- Support MSMEs in adoption
- Build regional collaboration frameworks
- Focus on real-world application
As the conversation on Looking East made clear, the question is no longer whether AI will transform Southeast Asia. The real question is whether the region can shape that transformation to be inclusive, responsible, and sustainable.
