{"id":57633,"date":"2024-11-08T10:56:42","date_gmt":"2024-11-08T10:56:42","guid":{"rendered":"http:\/\/86f18c43-de98-4eb6-a96f-f729212527e2"},"modified":"2024-11-08T10:56:42","modified_gmt":"2024-11-08T10:56:42","slug":"ai-can-drive-business-growth-in-southeast-asia-but-some-big-challenges-remain","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/ai-can-drive-business-growth-in-southeast-asia-but-some-big-challenges-remain\/","title":{"rendered":"AI can drive business growth in Southeast Asia. But some big challenges remain"},"content":{"rendered":"
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cofotoisme\/Getty Images<\/span><\/figcaption><\/figure>\n

Southeast Asian digital economies are projected to expand to $263 billion in gross merchandise value (GMV) this year — and artificial intelligence<\/a> (AI) is poised to fuel further growth, if greater business value is extracted from the technology.  <\/p>\n

According to the latest iteration of the e-Conomy SEA report<\/a>, the region’s digital economy will also be fueled by increasing user sophistication and the importance of cybersecurity<\/a>. <\/p>\n

Also: How Singapore’s SMBs and AI sustain a robust digital economy<\/a><\/strong><\/p>\n

Jointly released by Singapore’s investment firm Temasek, Google, and Bain & Company, the study taps insights and analyses from Temasek, Bain, and Google Trends, alongside data from research partners, expert interviews, and industry sources. The report covers six Southeast Asian markets: Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. <\/p>\n

The study includes a projection on the region’s profitability, which will hit $11 billion in 2024, up 24% from $9bn in 2023 and 101% from $4bn in 2022. <\/p>\n

Revenues are expected to climb 14% year-on-year to hit $89bn in 2024, with GMV clocking a 15% increase from last year. Profitability is fueled by several factors, including deeper participation among digital consumers, effective monetization strategies, and new revenue streams such as advertising.  <\/p>\n

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Southeast Asia is estimated to have driven $30 billion in AI infrastructure investment in the first half of 2024, amid accelerated consumer interest in AI applications, and searches about the technology growing 11 times over four years. <\/p>\n

The report notes that the region offers an attractive market for AI-enabled products and services because of its younger and growing population, and high digital literacy and smartphone penetration. <\/p>\n

Also: Singapore releases guidelines for securing AI systems and prohibiting deepfakes in elections<\/a><\/strong><\/p>\n

The region has a total population of 612 million, including 280 million in Indonesia and 119 million in the Philippines, and an online penetration rate between 73% and 83%. <\/p>\n

“From AI-powered travel planners to generative AI<\/a> (Gen AI) powered fraud detection, AI is driving value for the region’s digital economy through sector-specific and broader business use cases,” the Google-Temasek-Bain study noted. <\/p>\n

“Pro-innovation policies that support AI growth and governance<\/a> will help create more opportunities in the digital economy.”<\/p>\n

Also: <\/strong>How your inefficient data center hampers sustainability – and AI adoption<\/strong><\/a><\/p>\n

The research says there are accelerated investments in AI-ready data centers across the six Southeast Asian markets, with a 1.5 times increase in planned capacity. In the first half of the year, Malaysia committed to a $15bn investment to build AI-ready data centers, and Singapore and Thailand pledged $9bn and $6bn, respectively. <\/p>\n

Malaysia is further estimated to increase its current data center capacity of 120 megawatts (MW) by 500%, while Thailand is looking to boost its current 60MW capacity by 550%. <\/p>\n

Currently, Singapore<\/a> has over 1.4 gigawatts of data center capacity and is home to more than 70 cloud, enterprise, and co-location data centers. The city-state aims to add at least 300 megawatts of additional data center capacity<\/a> “in the near term” and another 200 megawatts through green energy deployments.<\/p>\n

Also: Southeast Asia reiterates pledge to collaborate amid growing cyber threats in AI era<\/a><\/strong><\/p>\n

However, in an increasingly complex online landscape, the Google-Temasek-Bain study notes that a collective effort to build digital trust<\/a> will be essential as cybercrimes continue to threaten the region’s digital economies. <\/p>\n

In particular, cybersecurity enhancements are needed to mitigate the risk of online scams and the sophistication of cyberattacks, underscoring the role of AI in helping organizations keep up. <\/p>\n

Also: <\/strong>Can governments turn AI safety talk into action?<\/strong><\/a><\/p>\n

As it is, consumers in the region are showing more interest in the potential benefits of AI rather than concerns. While some 26% have searched for issues related to AI-associated risks, including the cons of AI and the jobs at risk from AI, 42% have sought out issues related to its advantages, such as the benefits of AI in daily life. The remaining 32% of searches contain “neutral” terms related to both the benefits and risks of AI, notes the report, citing Google’s internal data. <\/p>\n

“Southeast Asia’s digital economy will be shaped by increasing user sophistication, the growing importance of digital safety and security, and the need to unlock greater business value from AI,” said the report. <\/p>\n

“To fully harness the transformative potential of Gen AI, businesses must advance beyond experimentation and invest in foundational elements,” said Florian Hoppe, partner at Bain & Company. <\/p>\n

Also: <\/strong>Time for businesses to move past generative AI hype and find real value<\/strong><\/a><\/p>\n

Hoppe said this approach means aligning AI initiatives with core business objectives to address real-world problems and create tangible value, pointing to the need to build AI talent and “scalable, adaptable infrastructure” for sustained growth.<\/p>\n

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Artificial Intelligence<\/h4>\n

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READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Research suggests Southeast Asian markets have already invested heavily in AI. Continued growth will rely on pro-innovation policies.READ MORE HERE…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[62],"tags":[],"class_list":["post-57633","post","type-post","status-publish","format-standard","hentry","category-zdnet-security"],"yoast_head":"\nAI can drive business growth in Southeast Asia. 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