Artificial Intelligence (AI) continues to redefine the socioeconomic landscape across the globe, bringing transformative changes to industries, public services, and daily life.
As the technology matures, its influence permeates sectors ranging from healthcare and education to agriculture and urban planning.
Notably, future developments highlight that the world is not only rapidly adapting to AI’s potential but also leveraging it to address long-standing challenges, drive innovation, and enhance global competitiveness. In 2024, the Asia-Pacific region experienced a significant surge in AI adoption, with over 70 per cent of employees utilising generative AI (GenAI) tools for work purposes and 16 per cent engaging with these tools daily.
The integration of AI is reshaping how societies operate, creating opportunities for growth while sparking conversations about ethics, governance, and inclusivity.
AI agents revolutionising efficiency and automation
Among these, AI agents are at the forefront of streamlining operations across critical sectors, driving transformative change in agriculture, finance, and customer service. By automating complex processes and delivering precise, actionable insights, AI is unlocking unprecedented efficiency and growth opportunities worldwide.
AI agents are significantly impacting industries like customer service, finance, and technology. In India, AI-powered chatbots and virtual assistants are enhancing customer interactions across various sectors. For instance, during the 2024 Indian general elections, AI was utilised to translate political speeches in real-time, enabling broader voter engagement.
In Southeast Asia, AI is driving growth in the digital economy. The e-Conomy SEA 2024 report highlights that Southeast Asia is ideally positioned as a fertile ground for AI development and adoption, with strategic investments in areas like GenAI adoption, talent development, and AI infrastructure. In just two years, profitability has surged 2.5 times, rising to US$11 billion in 2024.
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In Singapore, 80 per cent of financial institutions use AI-powered fraud detection systems, significantly reducing cybercrime risks. Additionally, government initiatives like the National AI Strategy 2.0 aim to up-skill 15,000 individuals by 2026.
Staying competitive in the corporate landscape
Large corporations are increasingly embedding artificial intelligence (AI) across their workflows to drive efficiency, innovation, and competitive advantage. For instance in Malaysia, Petronas has revolutionised its oil refinery operations with AI-driven predictive maintenance systems.
Meanwhile, Amazon is preparing to relaunch its Alexa voice assistant as an AI “agent,” capable of performing complex, practical tasks. However, the company is solving technical challenges, including reducing AI hallucinations, improving latency, and ensuring reliability.
Likewise, AWS is deepening its collaboration with Anthropic, which includes deploying its Claude AI models on AWS Bedrock and using AWS Trainium chips for training advanced AI systems.
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AI’s impact across everyday services
AI’s influence extends to tools directly enhancing individual experiences. In 2024, Deciphex, a Dublin-based medical technology company, introduced AI-driven platforms like Diagnexia and Patholytix to assist in diagnostics and address the global shortage of pathologists. These tools help pathologists diagnose diseases faster and more accurately, significantly increasing productivity by up to 40 per cent.
Grab, Southeast Asia’s ride-hailing giant, uses AI to optimise routes and reduce passenger wait times. Through its partnership with AWS, Grab has launched nearly 1,000 AI models across various use cases, including route optimisation and pricing. The company also employs AI for dynamic delivery batching, enabling drivers to handle multiple deliveries on the same route, cutting costs and improving efficiency, while boosting earnings for drivers.
What’s next for the AI-powered workforce?
Key AI trends are also defining the trajectory of the region’s technological ecosystem. Notably, in Southeast Asia, 84 per cent of GenAI projects progressed from ideation to production within six months, with 74 per cent achieving a return on investment within a year.
Meanwhile, Malaysia, Thailand and Singapore have attracted over US$30 billion in AI infrastructure investments in the first half of 2024, positioning the regions as Southeast Asia’s hub for AI development.
Despite advancements, privacy concerns remain a hurdle with consumers oblivious of AI’s data collection practices, prompting stricter regulatory measures from authorities.
But one trend is crystal clear: AI is driving unparalleled change across Southeast Asia, enabling industries to innovate and individuals to thrive. However, addressing challenges such as workforce adaptation, infrastructural bottlenecks, and consumer trust is essential for ensuring equitable and sustainable growth.
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