Southeast Asia’s enthusiasm for AI is unmistakable. With around 500 million internet users — roughly 10% of the global online population — the region is not merely AI-curious, but AI-ready.

Data from the e-Conomy SEA 2025 report underscores this momentum, showing consumer interest in both general and multimodal AI exceeding global averages, alongside a broadly positive perception of its benefits.

Yet translating enthusiasm into impact is far from straightforward. Trust remains a central hurdle. While consumers readily embrace AI for everyday conveniences, hesitation persists when it comes to complex, high-stakes decisions in finance or healthcare. For businesses, this makes transparency, user control and verifiability not optional features, but foundational requirements.

Economics further complicate adoption. Southeast Asia’s relatively low labour costs fundamentally alter the AI value equation. Unlike markets where automation is justified by high wages, AI investments here must demonstrate clear, localised returns without relying on large-scale labour displacement.

Layered onto this are structural complexities. Extraordinary cultural and linguistic diversity demands hyper-localisation, while fragmented and evolving regulatory regimes introduce uncertainty into long-term AI strategies. At the same time, AI is already reshaping consumer journeys, replacing linear search with algorithm-driven discovery.

Southeast Asia’s AI future will favour companies that balance ambition with nuance — building trust, respecting diversity, and deploying AI where it truly adds value.

REGIONAL

Ex-Terraform Labs CEO jailed 15 years for US$40B crypto fraud: Terraform Labs co-founder Do Kwon received a 15-year US prison sentence for fraud after TerraUSD’s 2022 collapse erased US$40 billion, impacting one million investors globally and triggering widespread financial devastation.

Indonesian regulator seeks role in Grab-GoTo merger on monopoly risk: The Indonesian Competition Commission noted that a merger between Grab and GoTo in Indonesia’s ride-hailing market would exceed monopoly thresholds, but the impact would depend on the final structure of the deal.

Temasek-backed SeaTown raises US$900M at second close of credit fund: The firm raised US$612 million at the first close in August. SeaTown is targeting a final fund size similar to its previous two private credit funds, which raised US$1.2B and US$1.3B.

MetaComp secures US$22M as Singapore emerges as Asia’s stablecoin hub: The investors include Eastern Bell Capital, Noah, Sky9 Capital, Freshwave Fund, and Beingboom Capital. With StableX and VisionX adoption rising, MetaComp prepares to expand regulated stablecoin settlement across SEA, South Asia and the Middle East.

Vietnam and Hong Kong join Singapore in global crypto top ten: Six Asia Pacific markets ranked among the world’s top 20, signalling a powerful mix of regulatory clarity, institutional participation and grassroots-driven use cases.

Validus secures US$30M in Series D from Khazanah Nasional: The SME financing marketplace will use the funding to scale up business operations as it aims to double its loan book over the next three years across Indonesia and Thailand.

Singapore’s RockFlow nets tens of millions of dollars in funding: Investors include Ant Group, Monolith Management, and Lanchi Ventures. The company will use the funds to expand globally and further develop Bobby, an AI agent for investment analysis and execution.

ComfortDelGro, Pony.ai get OK to test self-driving shuttles in Singapore: Singapore wants to roll out commercial AV services next year. For the initial phase, the city-state is eyeing a shuttle service that will ply a fixed number of locations within a specified district.

Saladin doubles down on digital insurance with Series A raise: Investors include SBI Ven Capital, Kyobo Securities, Monk’s Hill Ventures, and Peak XV Partners. Saladin’s Series A fuels expansion into digital life insurance as Vietnam’s insurtech market accelerates amid regulatory reform and consumer demand.

REPORTS & FEATURES

SEA is ready for AI, but not on Silicon Valley’s terms: The local economics present a unique calculation for AI adoption: business adoption of AI hinges on its affordability relative to labour costs. The weighted average wage in SEA is calculated to be just 5% of that in the US, and 36% of that in China.

Southeast Asia’s digital economy enters its “age of discipline”:
While the funding environment remains cautious, capital is being strategically deployed into areas with perceived long-term value, high-tech potential, and demonstrated financial discipline.

Digital wealth platforms hit scale in SEA as foreign investing apps outgrow local rivals: Key factors driving adoption of digital wealth platforms include lower fees compared to traditional instruments, a fully digital, seamless onboarding experience, and simple and clearly articulated financial products.

Southeast Asia’s next leap: QAI Ventures reveals how the region can accelerate deep tech development: QAI Ventures sees developments signifying a region ready to transition from tech adoption to true deep-tech integration.

INTERNATIONAL

South Korea launches US$102B fund for AI, chips, robotics: The fund will allocate US$51B to strategic industries with government backing, and US$51B from private sources, using a mix of financing tools such as bonds and low-interest loans.

Robinhood shares fall 8% as trading volumes drop: The US-based brokerage app reported cryptocurrency trading fall 12% from October to US$28.6 billion, a 19% year-on-year decline. Equity trading volumes also dropped 37% month-on-month to US$201.5 billion, though this figure was up 37% year-on-year.

South Korea to build US$3.1B foundry to boost chip production: The proposed 12-inch, 40-nanometre foundry aims to help fabless firms develop and test chips, according to the industry ministry. Officials will also seek to locally produce defence-related semiconductors, as the country currently imports 99% of these chips.

Palantir sues rival CEO over employee poaching: The US-based analytics software firm claims Percepta AI CEO Hirsh Jain, co-founder Radha Jain, and Joanna Cohen tried to recruit Palantir staff and misuse confidential information after leaving the firm.

S Korea to require labels on AI-generated ads from Jan 2026: The new rules come as AI-generated ads featuring fake experts and celebrity deepfakes have risen sharply, especially in the food and pharmaceutical sectors. Nearly 97,000 AI-generated ads for food and drug products were reported in 2024, up from about 59,000 in 2021.

SEMICONDUCTOR

China reportedly includes domestic AI chips in procurement list: AI processors from companies such as Huawei and Cambricon have been added to a government-approved supplier list. The move is part of Beijing’s ongoing efforts to reduce reliance on foreign technology, especially after US export controls limited access to advanced chips.

Former digital minister warns of growing cyber threats to TSMC: Digital minister Huang Yen-nun said hostile cyberattacks could be the most effective way to harm Taiwan’s semiconductor sector, emphasising the need for stronger industry precautions.

Senator calls for Nvidia CEO to testify on Trump’s chip approval: Senator Warren questioned Trump’s chip policy shift amid smuggling probes, as critics warn China risks, while the White House and Nvidia stressed licensing, legality differences, and limited China sales exposure.

Global chipmaker STMicro gets US$1.2B loan for Italy, France plants: The credit line came from European Investment Bank. About 60% of the funding is allocated to manufacturing facilities in Catania, Agrate, and Crolles, while the remaining 40% will go to R&D.

AI

The AI revolution in emerging markets: Local models, global impact: As AI transitions from early experimentation to everyday utility, platforms grounded in real user needs and sustainable model development may shape the next major chapter in global adoption.

The 3-day job that changed my perspective on work, adaptability, and AI: A three-day job dismissal prompts reflections on adaptability, initiative, and the growing importance of human determination in an AI-driven workplace.

What if AI spoke Singlish? How humour, language, and culture can make technology feel human again: Humour and local language help older adults engage with AI, turning Singlish playfulness into a pathway for digital inclusion.

Creating an AI playbook that works in SEA: Startups are usually first movers in deploying AI and can offer real world insights on where guardrails are needed, and what’s practically enforceable. Policymakers consult them before launching new rules and regulations.

The human touch endures: Why AI won’t replace all blue-collar jobs: Even as AI integrates into blue-collar jobs, human workers will still need to supervise, maintain, and collaborate with AI systems in the foreseeable future.

THOUGHT LEADERSHIP

5 hard truths from working with 200+ startups in SEA: Customer journey is rarely linear in SEA. Users move between platforms, languages, offline and online spaces. They discover brands through WhatsApp groups, TikTok creators, Telegram channels, niche communities or university networks long before they reach your website.

Bitcoin just broke US$94K: Here’s what the Fed’s next move means for your portfolio: Markets paused ahead of the Fed decision as strong labour data complicated rate expectations, while crypto surged on short squeezes, institutional inflows, and regulatory clarity, highlighting growing divergence from traditional financial markets.

Leadership, AI, and purpose: What 2025 taught us and what will shape 2026?: Whether speaking with operators in Indonesia, founders in Singapore, or policy voices in India, one pattern emerged: effective leaders in 2025 were those who embraced transparency, contextualised risk, and built cultures rooted in purpose rather than pressure.

 Livestreaming done right: How brands can turn viewers into loyal customers: Singapore’s e-commerce shift in 2025 shows brands must pair branded livestreams with consistent video content to build trust and sustainable sales.

Modernising the bank payments stack: How banks can compete and win in merchant acquiring: Banks can regain leadership in merchant acquiring by modernising their payments stack into modular, data-driven platforms that match fintech agility.

Fighting the chaos of growth: 5 practices to improve corporate governance beyond the board: In this article, there are five key learnings on how to build a company’s corporate governance muscle and reduce “governance debt” early on.

Decoding startup journey: Top 5 challenges entrepreneurs encounter: To succeed as a startup, it is essential to assemble a strong founding team, hire qualified staff, identify a specialised market, create a product that fits that market, and handle finances wisely.

The success algorithm: How life can mirror an AI model’s settings: A bold entrepreneur might experiment with multiple business ideas, while a stable professional follows a steady, predictable career path. The key is knowing when to adjust—too high, and decisions become chaotic; too low, and opportunities may be missed.

The post Ecosystem Roundup: SEA’s AI reality check; Terraform Labs’ ex-CEO jailed; Grab-GoTo merger scrutiny; Digital economy’s age of discipline appeared first on e27.

Singapore’s manufacturing sector remains a critical pillar of the nation’s economy, contributing significantly to GDP and employment. Yet, despite its importance, the majority of manufacturing businesses in Singapore continue to rely on basic invoicing and accounting systems with simple inventory management. These tools, while functional, lack the comprehensive production modules required to optimise operations in today’s competitive landscape. Alarmingly, over 95% of manufacturers in Singapore have yet to deploy a robust Manufacturing Execution System (MES), leaving them at risk of inefficiencies and missed opportunities.

What is MES?

A Manufacturing Execution System (MES) is a specialised software solution designed to monitor, track, document, and control the entire production process on the factory floor. Unlike traditional accounting or inventory systems, MES provides real-time visibility into manufacturing operations, enabling businesses to manage production schedules, quality control, resource allocation, and compliance seamlessly. MES acts as the digital backbone of modern manufacturing, bridging the gap between enterprise-level planning and shop-floor execution.

Standard requirements for a good MES

For an MES to deliver true value, it must meet several standard requirements:

• Real-time data collection and monitoring across production lines.
• Integration with ERP systems for seamless information flow.
• Quality management modules to ensure compliance with industry standards.
• Resource and workforce management capabilities.
• Scalability to support future growth and technological advancements.
• User-friendly dashboards and analytics for actionable insights.

These features ensure that manufacturers can achieve operational excellence, reduce waste, and improve productivity.

Differences between ERP and MES

While both ERP (Enterprise Resource Planning) and MES are critical to manufacturing success, they serve distinct purposes. ERP systems focus on high-level business processes such as finance, procurement, human resources, and supply chain management. 

MES, on the other hand, operates at the shop-floor level, managing production activities in real time. ERP answers the question of “what” needs to be produced, while MES addresses “how” it is produced. Together, they form a powerful synergy, but relying solely on ERP without MES leaves a significant gap in operational efficiency.

Also read: How IsCoolLab is shaping the future of industrial automation in Southeast Asia

How MES will benefit Singapore manufacturers

Deploying MES offers numerous benefits for Singapore’s manufacturing sector:

• Enhanced productivity through real-time monitoring and optimization.
• Improved quality control with automated compliance checks.
• Reduced downtime by identifying bottlenecks and inefficiencies quickly.
• Greater flexibility to adapt to changing market demands.
• Stronger integration with Industry 4.0 technologies such as IoT and AI.

For Singapore manufacturers aiming to remain globally competitive, MES is not just a tool—it is a strategic necessity.

Risk of ignoring the importance of MES

According to Steve Lai, an ERP expert from Multiable with over 25 years in manufacturing ERP solution, “Manufacturers who ignore MES risk falling behind in efficiency, compliance, and competitiveness. Without MES, businesses are essentially blind to what is happening on the shop floor. They may continue to rely on outdated systems that cannot provide real-time insights, leading to costly delays, quality issues, and missed opportunities in a fast-moving global market.” This perspective underscores the urgency for Singapore manufacturers to act now rather than later.

Also read: How CCTV-based vision AI is transforming manufacturing

Demystifying MES and ERP for businesses

At PRbyAI, we believe that knowledge empowers businesses to make smarter decisions. The purpose of this article is to share updated market news and insights, leveraging our team’s deep technical expertise. We aim to help B2B customers—especially those without a strong technical background—understand the importance of MES and ERP in the context of Singapore’s manufacturing landscape. By simplifying complex concepts, we hope to bridge the gap between technology and business strategy, enabling informed decision-making.

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This is the first part of a two-part series on why Bangladesh is becoming one of the most compelling markets for global investors. In this part, we explore the big picture forces shaping the opportunity, from economic momentum to digital adoption and the character of local founders.

Bangladesh, long overshadowed by flashier emerging markets, is fast proving itself an opportunity too big to ignore. Despite being Asia’s eighth-most populous nation and one of its fastest-growing economies, this ‘sleeping giant’ has until now remained off the radar of many global investors. With a booming consumer base, surging digital adoption, and a resilient economy, Bangladesh’s startup ecosystem is a diamond in the rough that savvy investors are waking up to.

The missed giant

Bangladesh, positioned between India and Southeast Asia, has historically fallen between the cracks of investor attention. Despite outperforming several neighbours in GDP growth, digital adoption, and consumer expansion, the country has not yet received proportional global investment. This gap stems not from a lack of opportunity, but from a lack of awareness. Bangladesh’s true potential remains largely untold.

Indeed, the nation of 180+ million has been consistently outperforming neighbours like India and Pakistan on many economic fronts, yet its startup sector has been dwarfed in funding by those countries. In 2021, Bangladeshi startups raised around US$165 million, a record high for the country, while Pakistan’s nascent ecosystem drew over US$350 million and India’s a staggering US$42 billion. This disparity stems not from lack of opportunity, but from lack of awareness.

Globally, Bangladesh is still often pigeonholed as a source of cheap labour or seen through the lens of its garment industry, rather than as a vibrant consumer and tech market. “Most global investors do not know that Bangladesh has more to offer than just cheap labour and goods”, notes Rahat Ahmed of Anchorless Bangladesh, a NY-based VC fund. In short, Bangladesh’s narrative hasn’t been told well; its booming economy and young, digital-hungry population remain an under-the-radar opportunity.

Why Bangladesh?

For investors seeking growth markets, Bangladesh checks all the boxes. The country boasts 180 million people, making it the world’s eighth most populous nation. Crucially, it’s a young nation, with a median age of just 28, yielding a massive demographic dividend of energetic, tech-savvy youth driving innovation and consumption. This consumer base isn’t just large; it’s getting more affluent each year.

Bangladesh’s per capita GDP growth has been among the highest in the world, even outpacing giants like China, India, Indonesia and Vietnam in recent years. An expanding middle class is fuelling domestic demand across retail, services and fintech.

Digital adoption is surging at an extraordinary pace, creating fertile ground for tech startups. Over 98 per cent of households now have a mobile phone, and smartphone usage jumped from 63 per cent to nearly 73 per cent of households just in the last two years. More than half of Bangladeshi households are connected to the internet, up from 44 per cent in 2018, meaning tens of millions of new internet users are coming online.

Rising mobile broadband access presents a huge opportunity for mobile-first services, from ride-hailing and food delivery to e-commerce and digital finance. Back in 2017, Dhaka was already ranked the #2 city in Asia for active Facebook users, a hint of how eagerly Bangladesh’s population embraces online platforms. Today, many Bangladeshis consume content predominantly on smartphones, scrolling Facebook, streaming YouTube or local services, rather than on television.

Also Read: Decoding startup journey: Top 5 challenges entrepreneurs encounter

In short, the country’s digital infrastructure and consumer readiness have reached a tipping point. A talented, hungry workforce is eager to try new apps and services, and with over 43 million students in the education system, the talent pipeline is only growing. The consumer economy, the digital rails, and the sheer retail market size have all been vastly underestimated by outsiders, making Bangladesh a compelling next frontier.

Why now?

If Bangladesh has long been overlooked, why is now the time to bet on this market? Simply put, multiple trend lines are converging in Bangladesh’s favour. First, the country’s economy is not only growing fast but also diversifying beyond garments. GDP has more than tripled in the past decade, crossing US$400 billion, with robust contributions from sectors like manufacturing, services, and now a budding digital economy. This growth comes with increasing stability (Bangladesh is on track to graduate from ‘least developed country’ status by 2026) and an economy anchored in fundamentals.

As one Forbes column recently argued, value-based investors see that now is the time to invest in Bangladesh, precisely when short-term worries have spooked the uninitiated. The country’s strong domestic demand and ‘resilience to global shocks’ set it apart. It weathered the pandemic and inflationary waves with less disruption than many peers, thanks to a large internal market and prudent policies.

Second, Bangladesh is entering a sweet spot of its demographic dividend. With a majority of the population of working age, and millions set to join the workforce, the nation will enjoy at least another decade where productivity can soar. This youthful cohort is entrepreneurial and plugged-in: they are launching startups, consuming digital services, and becoming first-time urban consumers en masse.

The surge in fintech and digital finance is a prime example of the timing. Services like mobile money have achieved massive scale – bKash, the country’s leading mobile financial platform, now serves over 68 million accounts (about 40 per cent of the population) and attracted a US$1 billion investment from SoftBank in 2018, making it Bangladesh’s first unicorn.

The digital rails are truly in place: mobile payments, eKYC, and nationwide 4G (soon 5G) connectivity provide the infrastructure for fintech and e-commerce booms. Smartphone prices have also plummeted due to local manufacturers like Walton, putting “almost everyone has a smartphone in their hands”, according to one local tech COO. The result is that market enablers are ready now in a way they weren’t just a few years ago – Bangladesh’s consumers have the devices, network, and digital literacy to embrace new apps and services.

Finally, the relative vacuum of foreign capital to date means valuations are attractive, and competition is low. Markets like India or Southeast Asia saw funding frenzies over the last decade; Bangladesh, left out of that party, still offers a ground-floor entry. Early movers can capitalise on the lack of saturation.

As global capital now looks for the ‘next Indonesia’ or ‘next Vietnam’, Bangladesh stands out as a 170-million-strong market that’s essentially greenfield. In short, Bangladesh’s moment is arriving: its fundamentals are strong, its people are ready, and the window to get in early is open right now.

A stable bet amidst turbulence

In a world rocked by geopolitical and economic turbulence, Bangladesh offers a surprising island of stability. The country has enjoyed decades of consistent GDP growth (averaging ~six per cent annually) and has avoided the crises that befell some neighbours. In fact, Bangladesh’s economy has grown into ‘one of Asia’s most resilient’, now the 33rd largest globally at US$411 billion GDP with US$52 billion in exports and US$31 billion in reserves.

Contrast this with Pakistan – a country often grouped in the same breath as Bangladesh in frontier market discussions. Pakistan today is ‘in economic disarray’: growth stuck around 3.5 per cent, inflation over 21 per cent, and forex reserves scraping below US$4 billion (much of it borrowed). It needed an IMF bailout to avoid default, and continues to face political chaos and currency freefall. Bangladesh, by comparison, has managed inflation, maintained healthy reserve coverage, and never defaulted on its obligations.

Also Read: Know thy customer: The only rule for startups looking to build trust on social media

Even Sri Lanka and some other regional peers have seen debt crises or political upheavals, whereas Bangladesh has been relatively steady. Yes, there is political noise – as any democracy in an election cycle – but by and large, the business and investment climate has remained predictable and investor-friendly.

Importantly, Bangladesh has kept a stable monetary and fiscal stance. The government has been pro-business and maintains incentives for investors (including tax holidays up to 15 years for foreign investors in infrastructure and tech). Massive infrastructure projects are actually bolstering stability and future growth: the country opened its US$3.6B Padma Bridge in 2022 (self-financed after donor pullouts), connecting underserved regions, and is building metro rail lines, a deep seaport, and new highways.

Such investments have improved Bangladesh’s Logistics Performance Index ranking to 88th (out of 139) in 2023, a significant jump that lowers the cost of doing business. While many emerging markets are tightening belts, Bangladesh is literally paving roads and powering up – a sign of confidence in its trajectory.

From a macro perspective, Bangladesh’s ‘strong macroeconomic stability’ has persisted despite global headwinds. It even entered a precautionary IMF program in 2023 to shore up buffers, demonstrating foresight. For investors, this relative stability means Bangladesh can be a safer port in the storm among frontier economies. As global LPs worry about volatility, Bangladesh offers a growth market where the downside (macro risk) is arguably less severe than in many peers.

The currency (taka) has depreciated gradually, not spiralled; inflation is high single digits, not triple digits; the banking system, while facing NPL issues, hasn’t collapsed. It’s a stable ship ready to sail once global winds turn favourable. In sum, Bangladesh represents a stable bet amidst turbulence – a place where investors can seek growth without betting on a powder keg.

Bangladeshi startups are built differently 

One reason Bangladesh hasn’t produced many overnight ‘unicorns’ is that its startups have had to grow the hard way, and that’s a good thing. Frugality and resilience are baked into the DNA of Bangladeshi founders. With foreign VC dollars scarce until recently, entrepreneurs here learned to do more with less, often funding growth with profits rather than blitz-scaling on venture burn. “The number one challenge is access to finance. Overcoming that is a much bigger challenge than building a company”, notes Sinha of Praava Health about the local startup journey.

The flip side of this challenge is a breed of founders who prioritise sustainable business models and real revenues from day one. Many Bangladeshi startups are solving fundamental, bread-and-butter problems, not building copycat apps for convenience’s sake, but tackling the kind of pain points that offer immediate value (and monetisation).

Crucially, these startups are often mission-driven, targeting issues that resonate with the masses. For example:

• Ride-hailing platform Pathao didn’t just introduce Uber-style convenience; it became a lifeline in Dhaka’s congested streets and even launched services like food delivery and digital payments to serve broader needs.
• Chhaya is Bangladesh’s first fully-digital micro-insurance platform that offers instant and paperless coverage accessible and affordable for blue-collar workers, small business owners, and informal-sector earners.
• Agritech venture Aunkur stands out because it helps farmers grow better crops using simple, affordable tools that test soil and give easy-to-use farming advice.
• Jatri uniquely digitises Bangladesh’s fragmented public transport by offering a full-stack mobility solution — combining real-time route discovery, digital ticketing, and operator-side fleet management into one integrated platform that serves both passengers and transport operators.

These examples show a pattern: Bangladeshi founders often build businesses that are deeply embedded in the local context – where success means improving everyday life for millions. Such businesses tend to be more defensible and socially valuable, not just chasing trends.

Also Read: The taste of innovation: Southeast Asia’s emerging F&B tech startups to watch

Moreover, the tough funding climate of the past has instilled discipline. Startups here measure success in sustainability and impact as much as in valuation. It’s telling that amid the 2022-23 global VC downturn, many Bangladeshi startups survived because they were already lean and accustomed to generating revenue.

Local angel networks and corporate investors have started stepping up (84 per cent of all startup deals in Q3 2023 involved local investors), which further encourages pragmatism and alignment with local market needs. The result: startups in Bangladesh are arguably built differently, with stronger fundamentals and a collaborative, impact-focused ethos.

For investors, this means less hype, more substance. A company that survives and scales in Bangladesh’s capital-starved environment is likely one with genuine product-market fit and solid unit economics. As global capital begins to flow in, these gritty startups could rapidly accelerate, but with a foundation far sturdier than many of their over-funded peers elsewhere.

In the second part of this series, we’ll dive into the real-world proof points behind this momentum. You will find case studies of high-growth Bangladeshi startups, a closer look at who is already investing, and a list of standout companies to watch as the ecosystem accelerates.

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As 2025 draws to a close, Web3 gaming is shedding its speculative skin. No longer mere blockchain experiments masquerading as games, the sector is pivoting toward seamless player experiences where digital ownership enhances — rather than defines — the fun. This maturation signals a robust future, with developers dissolving tech barriers to prioritise joy.

In an interview with Sunyoung Hwang, CEO of NEXPACE, this sea change came into sharp focus. “The industry’s perspective has completely shifted from ‘putting a game on the blockchain’ to ‘dissolving blockchain into the game’.”

Past projects often resembled financial products disguised as games. Now, post-bubble, the emphasis is on delivering utility of ownership for genuine gamers. “This return to fundamentals … sends a very positive signal for the industry’s health,” Hwang told e27.

Player-owned ecosystems will dominate next year, but success hinges on transcending simple item hoarding. “Moving beyond the one-dimensional concept of simply ‘owning game items,’ models that prove ‘what value those items hold outside the game’ will gain traction,” Hwang explained.

The key? “External Utility”. “The true value of ownership comes from utilisation, not just storage. The public will only feel the utility of blockchain when their items are actually used in other communities, secondary creations, or external platforms.”

Envision a virtual land parcel from one Web3 gaming title fuelling builds in another, or custom avatars crossing metaverses seamlessly. Nexpace is investing heavily here. On November 15, they launched a US$50 million ecosystem fund to back interoperability pioneers. Grants target AI-driven asset bridges, modular worlds and cross-game economies, propelling Web3 gaming from niche hype to scalable reality.

Also Read: The future of gaming: How AI technologies are shaping a new era of immersion

Smashing onboarding barriers in Web3 Gaming

Mainstream adoption lags due to persistent hurdles as many Web3 gaming projects still struggle with onboarding, user experience, and market scepticism. Yet Hwang pinpoints the core issue: “The biggest block is the high barriers to entry. Even with powerful IP and content, mainstream users will not enter if high thresholds like wallets, gas fees, regulations, and psychological resistance exist.”

Her antidote flips the script. “The game itself must be accessible via Web2 grammar, with blockchain features offered as optional choices only when the user desires them.”

This evolves the mindset from playing “because it’s a blockchain game” to “because it’s fun, and it happens to have extra features”. Traditional gaming titans, such as Fortnite, prove that accessibility wins.

“Gameplay is not a competitive advantage; it is the baseline qualification. A game without fun cannot survive, regardless of the technology,” Hwang stressed.

Blockchain evolves into an invisible infrastructure that quietly extends adventures. “The most advanced technology is that which the user doesn’t even notice; as the tech becomes more invisible, the game’s competitiveness rises.”

2025’s AI leaps in NPC behaviour and development pipelines set the stage for 2026 explosions. “AI will serve as the catalyst for ecosystem expansion,” Hwang forecasted.

Web3’s transparent rewards meet AI’s democratised tools, unleashing user-generated booms. Think casual players prompting AI to craft quests, skins or even mini-games, fairly monetised via blockchain.

Nexpace’s fund prioritises these hybrids, lowering production barriers. “If blockchain provides a transparent reward system and AI provides accessible creation tools, we will see explosive growth in a self-sustaining ecosystem of secondary content created by general users, not just professional developers.”

Also Read: AI in gaming: How Southeast Asia became the testing ground for virtual companions

Regulations loom as growing pains of a maturing industry. However, proactive steps such as anti-macro measures, security upgrades, and fraud prevention build trust first.

“2026 will be the year of moving beyond possibilities to tangible proof. The market will be reshaped by projects that prove – with numbers – that a balanced model works, ensuring user rights atop a stable service rather than pursuing vague decentralisation,” Hwang said.

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Image Credit: Josue Ladoo Pelegrin on Unsplash

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Singapore-based investment firm Turn Capital Opportunities Fund 1 has completed the 100 per cent acquisition of FRND, a leading influencer-driven fashion e-commerce platform in Taiwan. This marks another milestone in Turn Capital’s operator-led buy-and-build strategy across Asia’s consumer technology landscape.

The acquisition underscores Turn Capital’s ambition to identify and scale high-quality yet undervalued consumer-facing businesses by applying hands-on operational expertise rather than purely financial engineering.

Also Read: Turn Capital: Navigating turnarounds and sustainable growth

Founded in 2019, FRND has emerged as a category leader in Taiwan by partnering with prominent local influencers to co-create original fashion brands. Its model allows creators to build long-term intellectual property and deepen audience loyalty, while the platform benefits from high engagement, efficient customer acquisition, and strong repeat purchase behaviour.

“FRND has tapped into one of the most important segments of women’s fashion today — easy-to-wear, everyday essentials that are casual, reliable, and well-designed,” said Ho Kheng Lian, General Partner at Turn Capital.

“As someone with a deep appreciation for fashion, I have been consistently impressed by FRND’s influencer-led brands and their ability to deliver quality, modern basics that women can depend on to build their wardrobes. Their aesthetic is clean, comfortable, and versatile — pieces that empower women to feel confident in their daily lives,” Kheng Lian added.

Today, FRND operates seven influencer-led brands with a combined social reach of over 1.2 million followers. For its founder, the deal represents an opportunity to scale beyond its home market with a partner experienced in operating and integrating consumer technology businesses.

“Turn Capital has an exceptional track record in operating and scaling technology companies across Taiwan and Asia,” said Yao Ko Jen, founder of FRND.

“Their team brings a rare combination of operational discipline, digital expertise, deep understanding of influencer commerce, and genuine respect for the brands and people they work with. Turn Capital doesn’t just invest — they build, support, and elevate businesses,” added Ko Jen.

The acquisition adds to Turn Capital’s growing portfolio, which has pursued multiple buyouts and integrations since its inception. Past acquisitions include Zuvio, Taiwan’s leading college learning app; Goodnight, which later merged with SoundOn to form Taiwan’s largest audio media group; Dapp Pocket, which merged with Cappu to form digital asset manager Coinomo; and SoundOn itself. Collectively, Turn Capital’s portfolio companies serve more than 10 million users.

According to Joseph Phua, Managing Partner at Turn Capital, FRND aligns perfectly with the firm’s investment thesis. “FRND sits at the intersection of digital commerce, the creator economy, and community-led brands — areas where Turn Capital brings deep operational experience and a strong track record.”

“We see significant opportunities to scale FRND into one of Asia’s leading fashion powerhouses. It reflects exactly the type of business we seek to acquire and grow: strong fundamentals, robust profitability, under-optimised potential, high repeat purchase behaviour, and a scalable brand architecture,” he stated.

A scalable, operator-led playbook

Turn Capital’s approach aligns with a broader trend among buyout-focused investment firms globally, where operational improvements, technology adoption, and strategic integration drive value creation. Western firms, such as Thoma Bravo, Vista Equity Partners, Carlyle Group, and KKR, have long employed similar buy-and-build strategies, particularly in software and technology-driven sectors.

What differentiates Turn Capital is its regional focus and operator-led execution. Rather than minority investments, the firm has increasingly shifted towards complete acquisitions, allowing it to implement growth initiatives, automation, data analytics, and cross-portfolio synergies more effectively.

Also Read: Turn Capital acquires Flash Coffee’s Thai business

Founded in 2024, Turn Capital Opportunities Fund 1 targets majority stakes in early growth-stage consumer technology companies across Asia, particularly those undergoing founder transitions or operational turnarounds. The fund applies a hands-on approach to restore profitability, unlock strategic value, and deliver exits within its five-year fund life.

With nearly 50 years of combined operational experience among its partners — Joseph Phua, Ho Kheng Lian, and Shang Koo — including building the 17LIVE Group, which listed on the Singapore Exchange, Turn Capital positions itself as both an investor and operator.

As consumer behaviour across Asia continues to shift towards social commerce, creator-led brands, and digital-first engagement, Turn Capital’s acquisition of FRND signals confidence in influencer-driven models.

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Sheet after sheet amounting to more than 88 pounds of plastic was pulled out of a dead whale’s intestines in the Philippines. Clogged-up drainage systems exacerbated the impacts of deadly floods in Bangladesh during the devastating monsoon seasons.

Once beautiful lakes and rivers in India and China are now forever tainted by the irresponsible disposal of men. It is irrefutable that the issue of plastic waste has far-reaching consequences. Yet, this exact problem has been tactfully evaded for decades by governments and entrepreneurs alike. 

In 2017, the United Nations deemed that approximately seven billion of the 9.2 billion tonnes of plastic produced from 1950-2017 became plastic waste, ending up in landfills or dumped. The elephant in the room, our capitalistic society avoided re-imagining the final stages of many product life cycles, always opting for the most efficient, cost-effective and fastest way to get waste out of sight.

At the centre of the plastic waste problem stands Asia, a continent that has long chosen to turn a blind eye to its root causes and insidious impacts. Luckily, the effects stemming from decades of ignorance and oversight have finally forced us to divert more attention to this area, following the wave of growing innovations in other more-developed regions in the world, namely North America and Europe.

As we delve deeper into the plastic industry in Asia, I implore you to ponder more about the kinds of solutions the region needs as we evaluate the root causes, main challenges and key innovations that have emerged in Asia in recent years. 

In the first edition of this three-part series on the Asian plastic waste ecosystem, I would like to explore some of the major factors that have contributed to the problem, especially in the context of Asia.

You may ask – why Asia? 

Also Read: How climate tech companies in Asia measure the impact of their work

To begin, Asia stands as the world’s largest plastic-producing region, manufacturing approximately 51 per cent of the total global production of plastic materials. Furthermore, in 2019, statistics released by Our World in Data showed that Asia was the greatest emitter of plastic waste into oceans, at a whopping 80.99 per cent.

Not only does this affirm the extent of plastic produced in Asia, but it also sheds light on the underdevelopment of proper waste management systems in the region that could have facilitated the proper disposal of plastic waste. For comparison, total mismanaged waste from North America and Europe was less than five per cent, speaking volumes about the amount of improvement required of the plastic waste management systems in Asia. 

Coupled with the fact that the recycling systems and technologies in the region are still years behind, it is evident that plastic waste has become one of Asia’s most salient problems. Yet, though many deals and commitments to change have been made, plastic remains firmly entrenched in the region’s economy, especially in Southeast Asia (SEA).

Rising affluence

Firstly, the burgeoning middle class and population growth in many Asian economies have led to the rise of consumerism and a multi-faceted increase in the consumption of plastics.

The past few years of rapid economic growth in this region have led to a collective increase in middle-class income, directly increasing their purchasing power and, in turn, the ability to purchase goods and services both locally and from overseas.

Directly, this translates to an increase in the consumption of goods that contain plastics. More indirectly, this has also resulted in the explosive growth of the packaging industry, exponentially increasing the incidences of companies using single-use plastics to deliver their goods.

Also Read: How to navigate the investment opportunity in climate tech sector

This type of delivery model was pioneered in South and Southeast Asia and has become so “entrenched” that big industries now use it as a “justification”, says Von Hernandez, a renowned Filipino environmentalist and Goldman Prize winner.

Thus, it is arguable that the roots of plastic consumption in Asia lie in socio-economic factors such as rising affluence and a change in consumers’ tastes and preferences. 

Inadequate waste management infrastructure

Secondly, many Asian countries, especially in SEA, often have inadequate waste management infrastructures. Their primary method of disposal is still heavily reliant on landfills and open dumping.

Thus, it is indicative that the investments into the waste management systems are insufficient for good municipal waste management, let alone be enough to inject further value into the system through recycling.

Evidently, only 18 per cent to 28 per cent of recyclable plastic is recovered and recycled in the region, as compared to 38 per cent in Europe. Hence, there is a greater need for governments to prioritise and invest heavily in this area. 

The volume of imported waste 

Yet, while the statistics seem to suggest that Asia should be regarded as the epicentre of the plastic problem, the reality is often much more muddled. There is another part of the narrative that has not been explored much — the percentage of plastic waste that was not generated domestically and, in fact, arose due to developed countries importing their waste to less developed ones, especially those in SEA.

Case in point, about 74 per cent of the exported plastic waste in the world has entered Asia in recent years. From this lens, the plastic problem becomes much more global and interconnected, and thus much more difficult to attribute responsibility to.

Hence, it is pertinent to note that the plastic waste problem is not a regional but a global responsibility. More developed countries with the appropriate technologies and methods should aid less-developed countries, be it formally through international treaties or through technological transfers.  

In this part, I briefly touched on some of the key causes of the growing plastic problem in Asia. In part 2, I will be covering the main problems faced by stakeholders like corporations and regulators as they try to tackle the plastic problem.

This article is part of a three-part series adapted from the Plastics and Circularity Report under the HyperScale Waste-Tech Accelerator 2023 programme. For more information on the programme and how you can be a part of the inaugural Waste-Tech Accelerator problem in the world, find out more here: https://hyperx.global/hyperscale.

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The last four years have seen an exodus by household names such as Birkenstock, IKEA, and Nike from powerhouse marketplace Amazon. Once considered a “must-have” channel in any successful selling strategy, the high-profile exits from the world’s top online marketplace were each triggered by their own catalyst, but all of which centered around customer experience.

Nike withdrew from Amazon citing its desire for more direct, personal relationships with its own customers. Birkenstock pulled its products from Amazon’s virtual shelves due to concerns of brand dilution that arose from counterfeit products and predatory pricing from third-party retailers.

While these withdrawals have not had an impact on Amazon’s position as the world’s top online marketplace, they provide important learnings for both brands and marketplaces here in Asia looking to develop effective customer experience strategies.

Marketplaces still a significant part of the shopping experience

The e-commerce industry continues to be dominated by marketplaces that play a vital role in the shopping journey. A study on the Southeast Asian e-commerce industry revealed that 89 per cent of online purchases in Singapore takes place via marketplaces– even if select brands chose not to list their products, marketplaces remain crucial to an ecosystem that sees brands and marketplaces mutually dependent on each other for their survival.

For brands, particularly smaller businesses, marketplaces provide existing infrastructure and audiences that can immediately be leveraged.

Also Read: From co-working to co-living, these 7 brands in Southeast Asia have got you covered

Marketplaces, on the other hand, need a wide collection of sellers. From these small businesses to large, well-known brands, variety is essential to provide the range of products needed to attract and retain their audiences.

After all, today’s shoppers are savvy and compare offerings, selecting preferences based on a range of criteria including price and customer experience.

How brands and marketplaces can deliver a seamless customer experience

Both brands and marketplaces alike are realising the importance of the overall customer experience. This has seen 89 per cent of companies shifting to a model of competing primarily on the basis of customer experience. As partners, the onus is no longer only on the brands to deliver this experience, but also on the marketplaces, as an extension of the brands.

With this in mind, there are three key things both brands, as well as marketplaces, need to keep in mind when looking to deliver a seamless customer experience.

Deliver a strong brand experience across every touchpoint

The best customer experience is one where every customer who has ever interacted with the brand is able to communicate exactly who the brand is and what they stand for.

Customers should receive a consistent image and experience, no matter if they are purchasing from a retail store, the brand’s website, or a marketplace. This speaks to the products listed, language used, pricing strategy and overall interface.

Also Read: Myanmar-based logistics startup Kargo rebrands to Karzo as it refocusses on the B2B segment

Take, for example, Apple which has become synonymous with the clean, white aesthetic, and conversational tone of language across all their touch points – from the Apple Store employees, to that moment you turn on your Apple product and see “hello” for the first time.

A strong overall brand experience enables brands to inspire confidence and build stronger, sticky relationships with their customers.

Leverage data for a customised experience

Brands and marketplaces today have access to more customer data than ever before, whether through their websites, or their social channels. This also means that the customer of today expects more from brands and marketplaces than ever before, seeking an experience tailored to their needs and wants.

This makes it imperative for all players to leverage this data, responsibly, and in a way that complies with the Personal Data Protection Act, to deliver a personalised experience for each shopper.

Whether displaying suggestions for products they may like or timely reminders on items they have purchased regularly, each personalised aspect of the experience builds loyalty from customers inundated with options.

Recognising the importance of customer experience, J&T Express works with our partners to equip them with insights around buying patterns of their product category segmented by location.

Also Read: 10 ways to get a customer to buy from your e-commerce site

For example, Orbis, a collagen drink brand was looking for advice on their customer outreach strategies. Leveraging the data collected, we understood that Singapore was home to many customers who purchased consumables within the Health & Beauty category.

With this information on hand, Orbis was able to identify their target audience and potential opportunities within Tampines, and further amplify their presence through targeted offline sales events and delivering the right offerings to the right audience. This led to a month-on-month sales growth of 223 per cent supported by a median growth rate of 200 per cent within a seven-month period.

Delivery partners are another extension of your brand

A recent study by J&T Express found that the two most important factors to shoppers in Singapore are having their parcel delivered safely and in good condition, and the cost of delivery.

In fact, 83 per cent of respondents indicated that the overall delivery experience would determine whether they would make a repeat purchase with the same retailer.

As an extension of brands and marketplaces, the responsibility falls on delivery partners to implement the necessary processes to deliver these parcels on time and safely, helping to encourage a repeat purchase by the consumer.

They also need to cater to the changing needs and preferences of consumers who seek convenience and flexibility from their delivery options. Understanding this is key to the experience of our partners’ brands, we offer a range of delivery services, 365 days a year.

Also Read: HostelHunting rebrands into LiveIn.com; to expand into Indonesia, Philippines

Aside from express door-step delivery, our growing network of more than 1,000 collection points island-wide ensures that customers have greater control over their delivery experience. We also offer delivery for our customers seven days of the week, a first in Singapore.

Seamless experiences will help brands and marketplaces rise above

In an increasingly crowded market space where customers are spoilt for choice, it is a seamless customer experience that will help brands break through and retain the attention and loyalty of an increasingly savvy audience.

By focusing on creating the most seamless experience possible, throughout the customer journey and in collaboration with delivery partners, both brands and marketplaces can ensure they stay ahead of the very tight e-commerce race, whether alone or together.

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In this commentary, we take a closer look at the current digital maturity of Singapore’s government and propose key principles for its further advancement in the realm of digital transformation. We reflect on the government’s progress to an advanced stage of digital maturity as defined by Gartner’s Maturity Model and identify areas for improvement, particularly in terms of fluid data sharing, advanced analytics, and predictive AI, including principles that could propel the government’s digital transformation journey forward.

Elevated digital maturity of Singapore’s government

Singapore’s journey towards digitalisation has been marked by the launch of a multitude of public applications, ranging from transactional tools like BizFile to citizen-centric platforms like ScamShield. With strategic initiatives on data and Artificial Intelligence (AI) since around 2015, Singapore’s government has progressed to what we view as Level 3 (Figure 1 below) on the Gartner Digital Government Maturity Model 2.0.

This five-tier model gauges the digital maturity of governments. This ongoing transformation has enhanced citizen services, improved governmental productivity, and empowered more informed decision-making.

Astonishingly, 99 per cent of government services are now digital end-to-end, fostering satisfaction among citizens and businesses alike. The international community has also recognised Singapore’s accomplishments in digital transformation through various rankings and accolades.

Unleashing further potential through digital advancement

While commendable strides have been made, there remains untapped potential for achieving more advanced levels of digital maturity. Bridging the gaps to reach Levels 4 and 5 of the Gartner model requires a focus on seamless data sharing across agencies, the integration of advanced big data analytics, and pervasive predictive AI throughout the government apparatus.

Also Read: Why the growing UHNI population in Singapore is good news for Indian startup ecosystem

Necessity for next-level digital transformation

We advocate for the government to embrace digital transformation to elevate its digital maturity. Several compelling reasons underpin this imperative:

• Navigating uncertainties: In an era characterised by volatility and complexity, enhanced adaptability is crucial. The escalating economic uncertainties, geopolitical tensions, and emerging social challenges underscore the value of bolstering digital maturity. By doing so, the government can effectively anticipate, mitigate, and respond to crises.
• Overcoming legacy constraints: Legacy systems prevalent across agencies are often inflexible, limiting agility and resilience in the face of disruptions. Failure to modernise these systems can engender bottlenecks that hinder nimble responses to change.
• Data accessibility and speed: Siloed government IT systems impede swift access to data across agencies. The current lead time for obtaining core government datasets on the Government Data Architecture (GDA) can be cumbersome. Rapid data mobilisation, as witnessed during the pandemic, necessitates a unified data landscape.
• Harnessing emerging technologies: Cutting-edge technologies present opportunities to grapple with data surges and better serve citizens. This includes employing technologies like computer vision, X analytics, dynamic data stories, natural language processing, metaverse, and predictive AI to derive insights, enhance services, and predict trends.

Principles guiding next-level digital transformation

Outlined below are the key principles that could steer the government’s journey toward next-level digital transformation:

Principle 1: Unified data view

The government is already working towards a consolidated, real-time data view encompassing a wider array of agencies and data types. Doubling down on this initiative would expedite decision-making and enhance data pattern recognition for improved analytics.

Principle 2: Reinforcing AI

With AI making unprecedented advancements in recent months, the technology can positively impact strategic decision-making and service delivery. AI-driven insights derived from comprehensive big data analysis can enable proactive decision-making.

The government should leverage AI for policy prediction and formulating strategies to address diverse economic, social, and environmental variables. Furthermore, AI can be instrumental in optimising city operations and enhancing service delivery across agencies.

Principle 3: Accelerating tech modernisation

To enhance agility and user experience, the government can expedite the modernisation of legacy systems. Flexibility, integration, and user interface must be central to new system design, ensuring seamless data flows and a unified view of information.

Principle 4: Innovating with emerging tech

The government can adopt a two-pronged approach to innovation. This involves proactively identifying emerging technologies relevant to solving key challenges while simultaneously exploring how new technologies can tackle existing problems.

In the face of an increasingly volatile and complex global landscape, Singapore’s government must embrace adaptability across all dimensions, and I believe these four guiding principles will enable Singapore to achieve Gartner’s Levels 4 and 5 of digital maturity.

This transformation will pave the way for a digital government that is adaptable and forward-looking, even as Singapore seeks to preserve its prominence as a Smart Nation on the global stage.

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Artificial intelligence is rapidly reshaping creative industries, offering powerful tools that enhance artistic expression, streamline workflows, and make creative pursuits more accessible. Platforms like MidJourney and other AI-driven tools allow individuals with no formal artistic training to generate stunning visuals, music, and even literature.

While this democratisation of creativity presents exciting opportunities, it also raises serious concerns about originality, authorship, and the future of human artists, especially fresh graduates entering the field.

The bright side: Accessibility and efficiency

One of AI’s most significant contributions to creativity is accessibility. AI-powered tools lower the barriers to entry for people who may lack technical skills but have strong creative ideas. Someone with no experience in digital illustration can now generate professional-grade artwork in minutes, and writers can use AI-assisted tools to refine and generate ideas more efficiently.

For businesses, AI is a game-changer. It speeds up content creation, helps automate repetitive design tasks, and enables rapid prototyping. Companies can produce high-quality marketing materials, concept art, and branding assets with minimal human input, reducing costs and increasing output. The efficiency AI offers is undeniable, allowing creatives to focus on strategy and high-level conceptual work rather than manual execution.

The dark side: Originality, copyright, and job displacement

However, the integration of AI into creative work comes with serious challenges. One of the most pressing concerns is originality. AI generates work based on pre-existing data, often pulling from millions of images, texts, and sounds without truly “creating” in the human sense.

This leads to questions of authorship—if an AI creates an image based on thousands of existing works, who owns the final product? The artist who input the prompt? The developers of the AI? Or the countless creators whose works were used to train the model?

Also Read: Is AI the end of originality or a new dawn for creativity?

Copyright issues are already causing legal battles. Many artists and photographers have accused AI companies of using their works without consent to train models. The lack of clear legal frameworks means AI-generated content exists in a grey area, making it difficult for human creators to protect their intellectual property.

Beyond legal concerns, there’s also the issue of job displacement. Fresh graduates in art, design, music, and other creative disciplines now face an increasingly competitive market where companies might prefer AI-generated content over hiring human artists. Why pay for a designer when an AI tool can generate 10 different versions of a logo in seconds? This shift threatens the traditional paths that many creatives rely on to build their careers.

AI and the myth of the “non-creative”

Another interesting consequence of AI’s rise is the potential for non-creatives to produce high-quality work. Someone with no artistic background can now generate a gallery-worthy digital painting, raising philosophical questions about what it means to be an artist.

Is creativity about the final product, or is it about the process? If a person uses AI to generate an idea but refines it manually, are they still an artist? These questions challenge the traditional definitions of creativity and talent.

My opinion: Adapt or be left behind

AI is not an existential threat to human creativity, but it is a force that cannot be ignored. Trying to resist AI’s advancement is futile—technology will continue to evolve whether we like it or not. The most successful creatives will be those who learn to integrate AI into their workflow rather than seeing it as competition.

Fresh graduates and emerging artists should focus on what AI cannot replicate—deep human emotion, originality, and personal storytelling. AI can generate content, but it lacks the human experience that gives art its soul. Those who embrace AI as a tool, rather than a replacement, will find themselves at an advantage in an industry that is constantly evolving.

At the same time, ethical concerns around copyright and fair compensation for artists must be addressed. Governments and industry leaders must develop clear regulations to protect human creators while allowing innovation to flourish. Without proper oversight, we risk devaluing human artistry in favour of machine-generated convenience.

Ultimately, creativity is not about how art is made but about the ideas, emotions, and narratives it conveys. AI is just another tool—how we use it will determine whether it enhances or undermines human creativity.

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The latest OpenAI’s version of ChatGPT, an AI-enabled chatbot allows users to generate images of themselves, their pets, films or memes in the distinct “Ghibli” style of Studio Ghibli, the acclaimed Japanese animation studio. Notably, not all users are on board with the “Ghiblification” of images by OpenAI’s new tool. This post looks at the legal issues surrounding this new ChatGPT feature.

Blurring the line between homage and outright infringement

Legally speaking, artistic styles per se may not be protected under copyright law. However, specific characters or scenes like Totoro or a frame from Princess Mononoke are legally protected.

However, when ChatGPT allows a user to generate an image in an ‘Ghibli-style,’ OpenAI may likely be considered as trading off the goodwill of Ghibli’s trademarks (i.e. using Ghibli’s identifiable style) which may lead to a likelihood of confusion among consumers that such a function is indeed endorsed or licensed by Studio Ghibli.

Therefore, if ChatGPT produces a “Ghibli”-fied image that may be too close to the originals, such image may be subject to a potential lawsuit.

Walking on the thin line of copyright law

To date, there isn’t any legal precedent to determine if OpenAI contravenes the copyright law.

AI companies like OpenAI for training data for its models have used the “fair use doctrine” under copyright law as a legal protection. The “fair use doctrine” is a legal grey zone. The doctrine allows limited access to copyrighted materials without prior permission (e.g. quotations, research, teaching, news reporting, and other non-infringing uses).

However, OpenAI is already facing several lawsuits over its approach to scrapping the internet for training data for its models, including plenty of copyrighted material. In 2023, The New York Times, a news company sued OpenAI that the AI company infringed its copyright by using its material without permission to train its AI models.

To summarise, it may be likely that OpenAI’s model was trained on Studio Ghibli’s work. That in turn may raise the question if OpenAI has obtained a license or permission to do such training or not? Therefore, if we may look at the output of generative AI and see identical elements or substantially similar elements in that output, and such type of use was  happening without consent and compensation, it may be problematic.

Also Read: With AI comes huge reputational risks: How businesses can navigate the ChatGPT era

Time to rewrite the rulebook?

Copyright laws, developed centuries for a pre-AI world will need an overhaul. Instead of relying on the courts to interpret the existing copyright law, lawmakers worldwide must act quickly to discuss with a view to modernise copyright law for the age of AI. Should AI creation be copyrighted? What counts as fair use when machines exploit such original work?

A potential compromised scenario may include where artists agree to a system where the AI developers will compensate them as the copyright holders, and credit them where their content is used (in producing AI output).

AI developers should be transparent on data sources such as disclosing how they source their data (e.g. public domain, licensed content, or under fair use). Or they may likely face further legal challenges from copyright owners.

Final thoughts

When Studio Ghibli Co-Founder Hayao Miyazaki saw an AI demo in 2016, he was ‘utterly disgusted’ by it, as captured in documentary footage. He had warned in the past that AI could become ‘an insult to life itself’ if it loses sight of the human soul.

Can we prove him wrong? “Ghiblification” may be just the beginning, as we foresee future clashes between copyright law and AI. The challenge lies in whether we can strike a balance between rewarding innovation and upholding artistic integrity. Lawmakers need to act swiftly to provide regulatory clarity on the fair use of AI for the benefit of all.

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Image credit: Studio Ghibli

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