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AI is already inside the enterprise. Has security kept up in Asia?

Artificial intelligence is no longer sitting at the edge of enterprise experimentation. Across the Asia Pacific, AI assistants and autonomous agents are moving into live business environments, embedded across email, customer support, internal messaging, cloud applications and collaboration workflows.

That shift is creating an enormous opportunity. AI can help organisations move faster, automate routine work, improve customer experience and support better decision-making. But it is also changing the security equation. As AI becomes part of how work gets done, it is expanding where risk appears, how quickly incidents move, and how difficult it is for security teams to investigate what happened.

Proofpoint’s 2026 AI and Human Risk Landscape report shows that AI adoption in Singapore has already moved well beyond the pilot stage. 87 per cent of organisations in Singapore have deployed AI assistants beyond the pilot stage, and 70 per cent are actively piloting or rolling out autonomous agents. Yet security readiness has not kept pace. Close to three-fifths of these organisations describe their AI security posture as catching up, inconsistent or reactive. 38 per cent have already experienced a suspicious or confirmed AI-related incident.

This is the gap that should concern security leaders. AI is not waiting for governance frameworks to mature. Security leaders in Asia are under more pressure to address key areas of concern.

AI has expanded the attack surface

For many years, cybersecurity strategies were built around familiar control points: email, endpoints, cloud applications, identities and data repositories. Those still matter. But AI is now connecting these environments in new ways, allowing risk to move across workflows at machine speed.

In Singapore, email remains the most common AI-related threat vector, affecting 58 per cent of organisations. But exposure now extends much further: SaaS and cloud applications at 44 per cent, AI assistants or agents at 41 per cent, and collaboration tools such as Teams or Slack at 44 per cent. Among organisations that experienced an AI-related incident, exposure rises across every channel, including 61 per cent in file sharing platforms and 58 per cent involving collaboration tools.

Also Read: Singapore’s data analysts trust AI to work, not to think

This matters because enterprise work no longer happens in a single channel. A sensitive document may move from email into a collaboration platform, be summarised by an AI assistant, stored in a cloud application, and referenced by an autonomous workflow. Each step creates another point where data, identity and intent need to be understood.

Many organisations already have some forms of AI security controls, for example, monitoring shadow AI applications. However, the critical visibility is whether those controls can see across the connected environment how AI is actually being used.

Data security and AI security are the same problem

One of the most common structural errors in how organisations approach AI security is treating it as a separate workstream from data security. It is not. They are facets of the same problem, and solving one without addressing the other creates compounding exposure.

The earliest AI security challenge was clear: employees were using consumer AI tools to process sensitive business information. In 2025, 63 per cent of employees who used AI applications uploaded confidential company data, such as source code and customer records, to personal chatbot accounts. According to IBM’s Cost of a Data Breach Report, shadow AI breaches cost an average of US$670,000 more than standard security incidents, driven by delayed detection and difficulty determining the scope of exposure.

The second wave is more complex. As organisations moved to enterprise AI platforms — Microsoft Copilot, Salesforce Einstein, and others — the question became not whether data was leaving the organisation, but whether AI tools were accessing only the data they were supposed to. That is a data security problem expressed through an AI lens.

The third wave is real-time and agentic. Autonomous agents do not just respond to prompts. Similar to humans, they connect to external tools and MCP servers, acquire new capabilities, and act on data across connected systems. Understanding what an AI agent is doing requires capturing not just the prompt and response, but every tool call and downstream action in between. When security teams do not have visibility into what AI is connecting to and acquiring, they cannot tell the board they have it under control.

Also Read: AI-powered business automation: How SMEs are transforming operations in Southeast Asia

Gartner projects that by the end of 2026, up to 40 per cent of enterprise applications will integrate with AI agents, up from less than five per cent in 2025. It also predicts that by 2028, 25 per cent of all enterprise GenAI applications will experience at least five minor security incidents per year, up from nine per cent in 2025. The risk is scaling faster than governance.

Security and data governance teams need a shared view: what data exists, who and what has access to it, and how AI agents are actually using it. Having a clear view of all your data is not fictional, and it should be the foundation of building robust AI security for any organisation.

Tool sprawl is holding security teams back

Fragmented security stacks are compounding the challenge. Almost all organisations in Singapore say managing multiple security tools is at least moderately challenging, and 61 per cent describe it as very or extremely difficult. Respondents cite operational cost pressures, integration challenges and difficulty correlating threats.

When controls sit in separate systems, security teams lose time moving between dashboards, reconciling alerts and trying to connect activity across email, cloud, collaboration and AI systems. That delay matters when incidents can spread across workflows quickly.

As AI scales, security architecture becomes a strategic priority. More than half of Singapore organisations are actively pursuing vendor and tool consolidation, and 58 per cent believe a unified platform is more effective than point solutions. This reflects a broader shift. Organisations are recognising that AI security cannot be solved with isolated controls. It requires an architecture that can protect people, data and AI systems across the channels.

AI adoption in Singapore and Asia Pacific is not slowing down. The boards and CEOs driving it are right that falling behind carries a real competitive cost. The security leaders are now in a perfect position to enable this AI innovation with the visibility to secure it, govern it, and defend it. That is what setting the pace looks like.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. You can also share your perspective by submitting an article, video, podcast, or infographic.

The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of e27.

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Grab invests in EBOOST as Vietnam’s EV charging race shifts into higher gear

Vietnam’s electric vehicle (EV) market is entering a more practical phase. After years of attention on vehicle launches, subsidies, and consumer adoption, the next question is becoming harder to ignore: where will all these cars and motorbikes charge, and who will pay to build the network?

That question sits at the centre of Grab’s latest move in Vietnam. On July 10, the Singaporean superapp company announced a direct investment in EBOOST, a Vietnamese electric vehicle charging platform and infrastructure provider.

Also Read: Why rising fuel costs are pushing drivers towards EVs

The investment size was not disclosed, but the deal is notable for what it says about the next stage of EV adoption in Vietnam: charging is no longer just a real estate or infrastructure problem. It is becoming a platform business tied to mobility, payments, driver economics, and fleet utilisation.

The investment follows a memorandum of understanding signed by the two companies last November. At that point, the partnership was framed around giving Grab’s driver-partners easier access to EBOOST’s charging network. The new investment deepens that relationship and gives EBOOST additional financial capacity to expand its footprint across Vietnam.

Before the Grab partnership, EBOOST had already built one of the country’s larger independent charging networks, with more than 2,500 charging points and over 10,000 EV users nationwide. Its charging locations cover office buildings, residential developments, public destinations, parking facilities, and other everyday sites where vehicle downtime can be turned into charging time.

For Vietnam, this kind of distributed network matters. Unlike markets where charging infrastructure is concentrated along highways or in suburban homes, Southeast Asian cities are denser, more fragmented, and heavily reliant on two-wheelers. A successful EV charging strategy must serve office workers, apartment residents, ride-hailing drivers, delivery riders, and taxi fleets, often in the same neighbourhood but with very different charging habits.

From MoU to in-app charging

The clearest sign of the partnership’s commercial value is the integration of EBOOST’s network into the Grab Driver app.

Since April, Grab-Car driver-partners have been able to use the app’s EV Charging feature to find nearby EBOOST stations, start charging sessions, and complete payments without switching platforms. Hundreds of charging points have already been connected to the system.

Also Read: Electrifying Southeast Asia: Unleashing the radical potential of electric vehicles

That may sound like a product detail, but it addresses a real barrier for drivers. Charging is not just about the price per kilowatt-hour. It is also about route planning, waiting time, payment friction, reliability, and confidence that a charger will be available when needed. For ride-hailing drivers, every extra minute spent hunting for a charger is potential income lost.

Early usage data suggests the service is finding a repeat audience. More than 70 per cent of driver-partners continue using the service within the first seven days. For EBOOST, that points to stronger charger utilisation and recurring revenue. For Grab, it helps make EV use more practical for drivers whose daily income depends on predictable vehicle uptime.

The next phase will extend the same charging experience to electric motorbike driver-partners. That could be more consequential than the car segment alone. Vietnam remains one of the world’s largest motorbike markets, and the electrification of two-wheelers will be central to any meaningful shift in urban transport emissions.

Integrating thousands of additional charging points for motorbike users could give Grab a stronger role in shaping driver behaviour at scale.

Why Grab needs charging partners

Grab’s interest in EV infrastructure is not surprising. Across Southeast Asia, ride-hailing and delivery platforms face growing pressure to reduce emissions, while drivers remain highly sensitive to operating costs. EVs can lower fuel and maintenance expenses, but only if charging is convenient, affordable, and reliable.

That is where charging operators such as EBOOST become strategically important. A platform can encourage drivers to switch to EVs, but it cannot afford a poor charging experience that disrupts earnings. By embedding charging access into its driver app, Grab can reduce friction for drivers while gathering data on demand patterns, station performance, and charging behaviour.

Also Read: Grab’s US$600M deal could save Taiwan from a delivery monopoly

The model also reflects a broader shift in EV infrastructure. In early markets, charging networks were often built as standalone assets. In more mature ecosystems, they are increasingly tied to software layers: booking, payments, fleet management, energy optimisation, loyalty, and data analytics. EBOOST’s proprietary software platform is designed to support both electric cars and motorbikes, giving it room to serve mixed fleets and different user groups.

For Vietnam, that flexibility is important. The country’s EV market is not moving in a straight line. Private car adoption, taxi electrification, delivery fleets, e-motorbikes, and public charging demand are developing at different speeds. Charging companies that can serve multiple vehicle types may be better placed than those built around a single use case.

A crowded but still-open market

EBOOST is not building in an empty field. Vietnam’s EV charging landscape is shaped heavily by VinFast and its related infrastructure ecosystem, particularly V-Green, which has been expanding charging access to support the country’s largest domestic EV manufacturer. Regional players are also watching the market closely, including Singapore-based Charge+, which has been building cross-border charging ambitions in Southeast Asia, and other energy and mobility companies exploring EV infrastructure across the region.

The competitive question is whether independent networks can create enough utilisation outside manufacturer-led systems. EBOOST’s partnership with Grab gives it one potential answer: aggregate demand through a large mobility platform rather than relying only on walk-in consumer charging. If Grab’s EV driver base grows, EBOOST could benefit from more predictable charging volumes, while Grab gains a charging layer without having to build and operate the entire network itself.

That matters because EV charging is a capital-intensive business. Hardware deployment can be expensive, site acquisition is complex, and payback periods depend heavily on utilisation. A charging station in the wrong location can sit underused; one tied to a reliable flow of commercial drivers can become a recurring revenue asset.

The Southeast Asian test case

Vietnam is emerging as one of Southeast Asia’s most closely watched EV markets. Its combination of urban density, motorbike dependence, local manufacturing ambition, and fast-growing digital services makes it a useful test case for the region. If companies can solve charging access for ride-hailing cars and motorbikes in Vietnam, similar models could be adapted in Indonesia, Thailand, and the Philippines.

Also Read: Grab’s US$425M Stash acquisition is about AI coaching, not America

Still, execution will decide the outcome. EBOOST will need to expand without sacrificing reliability, while Grab must ensure the economics work for drivers, not only for platform targets. Charging access has to be priced and located in ways that make daily use practical.

The investment gives EBOOST stronger backing at a time when Vietnam’s EV ecosystem is moving from headline ambition to operational detail. The next contest will not be won only by who installs the most chargers. It will be won by the companies that make charging invisible enough for drivers to build their working day around it.

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Bitcoin volume drops 6.14%, and everyone calls a bottom, I disagree

Bitcoin sits at US$66,188.15 this morning, down 0.65 per cent over the past 24 hours, and the number tells only a fraction of the story. The cryptocurrency pulled back from a one-month high near US$67,000 as WTI crude oil surged above US$85 and then climbed further toward US$94 per barrel amid an escalating US-Iran conflict now in its second week.

The broader crypto market cap slipped 0.47 per cent alongside Bitcoin, volume contracted 6.14 per cent, and Bitcoin dominance held near 59 per cent with no meaningful capital rotation into altcoins. On the surface, this looks like a gentle consolidation after a recovery rally from July lows.

But when I step back and look at the full macro picture unfolding on July 23, 2026, I struggle to share the optimism that we have found a floor. The global factors stacking up right now suggest Bitcoin has more downside to endure before any sustainable recovery takes shape.

The oil story dominates everything else at this moment. Crude prices above US$94 per barrel represent the highest levels since June, and they carry direct implications for inflation expectations and Federal Reserve policy. The US-Iran conflict shows no signs of de-escalation as it enters its second week, which means supply disruption risks remain firmly on the table. Higher energy costs feed into transport, manufacturing, and consumer prices across the board. Airlines already face margin compression.

Treasury yields hover near 2026 peaks as bond markets price in the possibility that the Fed keeps rates higher for longer. The July 28 FOMC meeting looms as the next critical catalyst, and if the statement hints at delayed rate cuts or, worse, another hike, risk assets, including Bitcoin, will absorb the blow directly. Bitcoin in this environment behaves exactly like a leveraged tech stock rather than a decoupled store of value, and that correlation works against holders when macro conditions deteriorate.

Also Read: Bitcoin just broke US$66,000: Is this the start of the next bull run or a trap for late investors?

The equity backdrop reinforces my caution. Wall Street benchmarks finished lower overnight, with S&P 500 and Nasdaq futures slipping as megacap tech earnings delivered mixed signals. Tesla fell around four per cent after missing both revenue and margin estimates. Alphabet reported strong Q2 cloud growth but slid in extended trading as investors baulked at plans to increase capital expenditures. Yes, Super Micro Computer surged 20 per cent on strong AI server margin forecasts, but that single bright spot does not offset the broader disappointment.

The AI narrative that has propped up markets for over one year now faces scrutiny on whether spending translates into returns. When growth stocks wobble, Bitcoin wobbles harder. The 6.14 per cent drop in crypto trading volume suggests buyers have stepped back and lack the conviction to defend current levels. This is not the behaviour of a market that has found its bottom.

Technically, Bitcoin tests its daily pivot near US$66,103 right now. The immediate Fibonacci support sits at US$64,750, representing the 23.6 per cent retracement level. Below that, the US$63,000 to US$63,400 zone serves as the next meaningful floor. Overhead, the 100-day EMA near US$68,000 caps any rally attempt. The structure looks neutral on paper, but I read it as fragile.

A close below US$64,750 opens the trapdoor toward US$63,000, and given the macro headwinds I just described, I think that break becomes more probable with each passing day of elevated oil prices and unresolved geopolitical tension. The recovery channel from July lows remains intact for now, but channels break, and they tend to break in the direction of the prevailing macro wind.

Also Read: Bitcoin reclaims key technical levels, Ethereum leads broader market gains

Grayscale research head Zach Pandl offers a more constructive view, suggesting Bitcoin’s recent price low might hold if the Federal Reserve ends interest rate hikes and economic growth remains stable. He treats Bitcoin as a mature asset influenced by growth and Fed policy, rather than by the traditional four-year cycle model, which would predict a longer bear market and deeper declines.

Grayscale also points to the CLARITY Act and Strategy’s improved financial position, including a US$216 million Bitcoin sale that strengthened cash reserves and reduced forced selling risks, as structural positives. I respect that framework, but it relies on the Fed cooperating and growth holding steady. With oil above US$94 and inflation concerns resurfacing, the Fed has every reason to stay hawkish. The conditions Pandl requires for a bottom simply do not exist right now.

SkyBridge founder Anthony Scaramucci argues that Bitcoin will grind higher from here and cannot get much worse. I appreciate the sentiment, but the global picture tells a different story. Mixed Asian markets preparing for a cautious open, a steady US Dollar against the Yen and Euro that signals continued risk aversion, and geopolitical tensions with no resolution timeline all point toward sustained pressure. The AI boom cushions some of the blow in equities, but it does not immunise crypto from a liquidity squeeze if yields push higher.

Here is where I land. Bitcoin at US$66,188.15 reflects a market in pause, not a market in recovery. The 0.65 per cent daily decline understates the vulnerability beneath the surface. Oil above US$94, an active US-Iran conflict, disappointing tech earnings, yields at 2026 peaks, and an FOMC meeting five days away create a cocktail of risk that has not fully priced into crypto.

The 6.14 per cent volume decline confirms that participants are waiting on the sidelines rather than accumulating. Bitcoin dominance at 59 per cent shows no rotation, no excitement, no fresh capital entering the ecosystem. I do not think we have bottomed.

The US$64,750 level will face a serious test before July ends, and if the FOMC disappoints or oil pushes toward US$100, the US$63,000 zone becomes the realistic near-term target. Patience, not optimism, serves holders best in this environment. The macro picture has not given us permission to call a bottom, and until it does, every rally toward US$68,000 looks like a selling opportunity rather than a breakout.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. You can also share your perspective by submitting an article, video, podcast, or infographic.

The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of e27.

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Deeptech and a fracturing world: Why Southeast Asia needs a new playbook

Deep tech in a fractured world needs something very different.

For much of the last 30 years, the working assumption behind technology and capital was simple: the world was converging into one increasingly integrated market. If you could build a product that scaled, global demand and global capital would be there to meet you.

That assumption is now clearly breaking down. Supply chains are being rewired, export controls are spreading, and critical technologies are being treated as instruments of statecraft rather than just engines of growth. The question for Southeast Asia is whether it wants to be a spectator to this shift, or a protagonist.

Deep tech sits right in the middle of this story. It is capital intensive, politically sensitive, and deeply entangled with physical infrastructure and long-term industrial policy. Yet many of the funding models we rely on were designed for asset‑light software, not for advanced manufacturing, new energy systems, or frontier materials.

If Southeast Asia wants a meaningful role in this new order, it cannot rely solely on importing technology and exporting talent. It has to build its own deep tech platforms – and it has to do so with an investment model that acknowledges fragmentation rather than assuming frictionless global markets.

The deep tech paradox

There is a paradox at the heart of deep tech today.

On one hand, governments and corporates worldwide describe it as strategically important. Climate solutions, AI for science, semiconductors, and advanced manufacturing all sit near the top of policy agendas. In Southeast Asia, reports like DealStreetAsia’s The State of Deep Tech in SE Asia 2025  note that deep tech’s share of overall funding is rising, even as absolute capital fell during the recent funding winter.

On the other hand, a lot of the IP that could underpin these sectors still struggles to leave the lab. High‑value patents and prototypes often stall in what investors like to call the “valley of death”: that messy, expensive space between proof of concept and commercial scale.

Traditional venture capital evolved around “optionality”: spread small cheques across many companies, keep ownership light, and hope a handful of outliers carry the fund. That logic made sense when the product was software you could ship globally at marginal cost. It is misaligned with deep tech, where outcomes depend on engineering discipline, regulatory engagement, and long-term offtake contracts.

Also Read: Deeptech’s secret: Ignore the market, master the engineering, and let opportunity find you

In a fracturing world, that misalignment becomes more dangerous. Export controls, national security reviews, and shifting sustainability rules can redraw a company’s viable markets overnight. Treating deep tech as a spray‑and‑pray portfolio of lottery tickets is no longer just inefficient; it increases the risk that strategically important IP never reaches scale at all.

From exposure to control

Fragmentation doesn’t just increase risk. It also changes what “good” looks like for investors and builders.

In a flat world, the main question was often, “How do I maximise exposure to a theme?” In a fractured one, the more relevant question becomes, “Where do I need real control – over governance, capital structure, supply chains, and commercialisation?”

In Southeast Asia, a new pattern is emerging in that “messy middle” between traditional venture capital and private equity. Instead of spreading capital thinly, some platforms are taking significant stakes in a small number of ventures, combining capital with operating control, and standardising parts of the commercialisation process.

A key design choice is to start at higher Technology Readiness Levels – TRL 7 to 9 – where core scientific risk has already been resolved through public–private research ecosystems. In Singapore, for example, institutes such as ASTAR and university labs have built a deep pipeline of such IP, and recent work by McKinsey, the Singapore Economic Development Board (EDB) and Tech in Asia in AI in Southeast Asia: An era of opportunity shows how AI and related technologies are moving beyond pilots into scaled deployment.

By entering at this stage, investors and operators can focus on market design, go‑to‑market architecture, and capital efficiency rather than basic feasibility. Just as importantly, they can design governance and cap tables from the outset, which matters when regulatory and geopolitical risks are as material as technological ones.

Deep tech as a “non-aligned” asset class

In this environment, it’s helpful to think of deep tech as a potential “non‑aligned” asset class.

The most valuable technologies of the next decade – from advanced manufacturing and energy systems to critical materials – are likely to be contested by multiple blocs, rather than dominated by a single geography. Companies structurally tethered to one jurisdiction or standard can find their freedom to operate constrained as policies shift.

By contrast, platforms that anchor IP and governance in trusted hubs, while diversifying markets and manufacturing across regions, can become shared infrastructure rather than instruments of any one industrial strategy.

Southeast Asia, and Singapore in particular, is unusually well positioned to build such platforms. The region sits at the intersection of US, Chinese, and regional supply chains. Singapore offers a credible legal and regulatory environment, and its AI and tech ecosystems are maturing quickly. The AI in Southeast Asia: An era of opportunity report, for example, finds that nearly half of companies surveyed in the region have moved beyond AI pilots, putting Southeast Asia ahead of the global average. A Business Times summary notes that more than 80 per cent of companies are already piloting and scaling AI projects.

Anchoring IP in Singapore while designing ventures that can route production and customers across Asia, Europe, and beyond is one way to turn fragmentation into optionality. In practice, that means thinking early about export controls, dual‑use risks, data localisation, and AI governance frameworks such as ASEAN’s AI governance guide and Singapore’s Model AI governance guidelines.

Also Read: Why traditional marketing fails for complex B2B and deeptech products

From discovering to industrialising

The deeper shift, though, is recognising where the real bottleneck lies.

We are no longer constrained primarily by a lack of scientific discovery. Labs around the world – including those in Southeast Asia – are full of promising high‑TRL IP. The real constraint is institutional: our ability to take that IP and industrialise it, turning it into companies with credible revenue, governance, and liquidity paths.

Some emerging platforms treat company building explicitly as an engineering problem. They standardise finance and governance templates, regulatory pathways, and operational playbooks, and apply these across a concentrated portfolio where they hold meaningful ownership from inception.

Rather than backing dozens of experiments, they co‑build a smaller number of high‑conviction ventures, often with the aim of reaching public markets within a defined timeframe. Exchanges such as SGX, HKEX, and NASDAQ are already home to advanced manufacturing and deep tech listings. EDB’s Destination Southeast Asia 2024 report shows how the region’s tech hubs are attracting more sophisticated capital, while DealStreetAsia’s deep tech reviews highlight a growing share of deep tech deals in the overall venture mix, even after a pullback in funding.

In a fracturing world, this approach has two advantages. It keeps cap tables and governance relatively clean, which simplifies regulatory engagement and cross‑border partnerships. And it gives investors a clearer line of sight to liquidity, which matters when global IPO windows are more volatile, and capital is becoming more selective.

Where Southeast Asia fits

All of this brings us back to the original question: where does Southeast Asia fit in a fracturing world?

On one level, the region is another theatre in a global competition for capital, talent, and supply chains. On another, more interesting level, it can be a builder of the deep tech platforms that fragmentation actually requires: resilient, multi‑market, and anchored in trusted institutions.

If Southeast Asia can consistently take high‑quality IP from its research institutions and partners, industrialise it, and bring it to market with credible governance and liquidity, it becomes more than a manufacturing base or testbed. It becomes a generator of infrastructure‑grade deep tech – platforms that multiple blocs can depend on, but none can easily dominate.

That is ultimately how the region’s voice becomes part of the conversation, rather than reacting after the fact: not by recreating Silicon Valley’s venture playbook, but by building the kinds of deep tech institutions that a fracturing world will increasingly need.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. You can also share your perspective by submitting an article, video, podcast, or infographic.

The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of e27.

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The evolution of trust: From early adoption to institutional maturity

Most leaders entering a new market think first about demand. They ask whether the problem is large enough, whether the timing is right, whether regulation is favourable, whether distribution can be acquired at acceptable cost, and whether the economics can support scale. Those are sensible questions, but they often arrive too early. Before a market can scale, before it can standardise, before it can attract sustained capital and serious institutional participation, it has to solve something more basic. It has to establish a trust primitive.

By trust primitive, I do not mean brand warmth or a vague sense of confidence. I mean the foundational mechanism that allows strangers, institutions, and counterparties to participate despite uncertainty. It is the smallest reliable unit of belief that makes the market usable. In some categories, that primitive is escrow. In others, it is identity verification, a guarantee, a clearing mechanism, transparent pricing, dispute resolution, regulatory oversight, or auditability. The exact form changes by sector, but the strategic truth does not. Every new market becomes real only when participants know what they can rely on, what happens when something goes wrong, and who absorbs the consequences.

That is why so many markets look promising in theory and fragile in practice. 

New markets do not fail because of weak demand

A surprising number of early market failures are misdiagnosed. We often say customers were not ready, adoption was too slow, or the proposition was not compelling enough. Sometimes that is true. But in many cases, the real problem is that the market asks people to take too much on faith.

When a market is new, uncertainty exists at every layer. Buyers do not know whether quality claims are real. Sellers do not know whether they will be paid fairly or on time. Partners do not know whether standards will hold. Regulators do not know whether risks are visible early enough. Investors do not know whether apparent growth is durable or merely subsidised experimentation. In that environment, even a strong product can struggle because the surrounding conditions are too ambiguous for meaningful commitment.

This is where strategy often gets superficial. Teams focus on proposition design, pricing, or acquisition before addressing the deeper question of assurance. What would make a rational participant comfortable enough to depend on this market, not just sample it? That question sounds softer than it is. In reality, it is structural. 

Trust is not a brand outcome; it is market infrastructure

Consumers may say they trust a brand, but what they often mean is something more concrete. They believe payments will settle correctly. They believe data will be handled properly. They believe there is recourse if something goes wrong. They believe quality has been checked by someone other than the seller. They believe abuse will be contained. They believe the rules will be applied consistently. In other words, what looks like trust is often confidence in invisible infrastructure.

Also Read: How creativity, commerce and AI collide in mid-2026 marketing mix

This matters because markets do not stabilise through aspiration alone. They stabilise through mechanisms that reduce the cost of belief. That may include insurance, certification, guarantees, identity systems, standard contracts, transparent governance, independent oversight, or rules around loss allocation. Once these mechanisms are in place, the market no longer depends on every participant making a heroic judgment call every time they engage. The system does more of the work.

The first trust primitive is rarely the final one

Another mistake is assuming trust is solved once a market gets early traction. In reality, trust evolves in stages, and the primitive that unlocks early adoption is often different from the one required for institutional maturity.

Early consumer platforms, for example, often rely on visible signals such as reviews, ratings, social proof, and simple guarantees. Those mechanisms can be enough to establish initial confidence among retail users. But once the market seeks enterprise adoption, regulatory approval, or critical mass across a more complex value chain, those same mechanisms become insufficient. Institutions do not make decisions on the basis of community sentiment. They want process controls, audit trails, contractual clarity, governance standards, measurable accountability, and credible remediation.

Every serious market solves the question of loss

If I had to reduce the trust primitive to a single test, it would be this. When something fails, who carries the loss, and how quickly is that answer known?

This is where abstract conversations about trust become concrete. Markets that scale are not markets without failure. They are markets where failure is legible, containable, and allocable. Participants know the boundary conditions. They know whether a transaction can be reversed, whether liability sits with the platform or provider, whether disputes can be adjudicated, whether fraud is insured, whether records are accepted as evidence, and whether harm can be corrected without destroying participation.

This is one reason payments matured through rules, networks, chargeback mechanisms, and settlement disciplines. It is why financial services depend so heavily on supervision, capital requirements, complaints handling, and conduct frameworks. It is why digital identity remains such a hard problem in many emerging categories. It is why AI markets will increasingly be judged not only by capability, but by traceability, explainability, and responsibility when decisions cause harm.

The best growth strategy is often trust architecture

A well-designed trust primitive compresses adoption friction. It shortens decision cycles. It reduces the burden on frontline sales teams to overexplain risk. It lowers compliance anxiety. It improves repeat behaviour because participants are not renegotiating uncertainty every time they return. Most importantly, it changes the shape of the market itself. More counterparties become willing to join, more workflows can move from exception handling into standard process, and more capital becomes comfortable backing long-term participation.

Also Read: The future of marketing isn’t about AI, it’s about judgment

This is why the most consequential strategic moves in a new market often look unglamorous from the outside. They involve rule setting, standard creation, liability design, governance forums, audit models, certification systems, customer protections, and interoperable controls. These are not usually celebrated as growth stories in the early narrative. But they are precisely what separates a category that remains interesting from one that becomes durable.

The paradox is that trust architecture can feel like friction in the short term while creating expansion in the long term. Weak leaders avoid it because it slows the initial story. Strong leaders invest in it because it changes the ending.

The first question should not be market size

When evaluating a new market, the smartest first question is not how large it could become. It is what participants need in order to trust it enough to rely on it.

That framing changes the quality of strategic thinking. It moves the conversation away from enthusiasm and towards structure. It forces clarity on institutions, incentives, safeguards, and failure management. It also reveals whether the company is actually building a market or merely exploiting a temporary gap before trust catches up with reality.

This matters especially for leaders trying to build new businesses in complex sectors. The closer a market is to money, identity, data, safety, or operational continuity, the less room there is for trust to remain informal. In these domains, trust must be engineered, evidenced, and governed. Without that, scale tends to arrive before legitimacy, and that is usually when the real problems begin.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. You can also share your perspective by submitting an article, video, podcast, or infographic.

The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of e27.

Join us on WhatsAppInstagramFacebookX, and LinkedIn to stay connected.

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