Reviews | How Southeast Asia can become the next AI powerhouse

In the global race to develop artificial intelligence (AI), Southeast Asia appears to be an unexpected destination. competitor. Traditionally, discussions around AI innovation have focused on the United States and China, but Southeast Asia’s unique combination of adaptability, dynamism and strategic investments positions it as a essential player in shaping the AI landscape.

Characterized by targeted infrastructure investments, localized innovation and government-backed strategies to foster growth, the region is closing the gap by establishing AI-ready data centers, creating bespoke language models and by encouraging cross-sector collaboration. His focus on tackling real-world challenges also makes him one to watch.

The region is one of the most economically important in the world, and its young and growing middle class, 200 million strong, is driving its rapid digital transformation. Last year, Southeast Asia’s digital economy made $11 billion in profits, up from $4 billion two years earlier. By 2050, Indonesia is expected to become the world’s leading country. fourth economywhile Malaysia and Thailand are expected to have economies in excess of $1 trillion each.

Substantial investments in digital infrastructure support this growth. In the first half of last year alone, more than $30 billion in investment was committed to construction. AI-ready data centers in Singapore, Malaysia and Thailand.

These efforts are creating advanced computing capabilities and positioning the region as a global leader in AI-driven innovation. Powered by a digitally savvy population, countries and businesses are seeking AI solutions to address societal and industrial challenges.

Presentation by Google during the inauguration ceremony of Malaysia's first Google data center, in Kuala Lumpur, on October 1. Google's investment is expected to generate an economic impact greater than $3.2 billion and create 26,500 jobs by 2030. Photo: EPA-EFE — Presentation by Google during the inauguration ceremony of Malaysia’s first Google data center, in Kuala Lumpur, on October 1. Google’s investment is expected to generate an economic impact greater than $3.2 billion and create 26,500 jobs by 2030. Photo: EPA-EFE

Southeast Asia is carving out a unique niche in AI by focusing on both practical applications and collaborative innovation in sectors such as logistics, healthcare and education. AI startups in the region are working on solutions that can improve operational efficiency and security compliance.