Generative AI (GenAI) is transforming industries globally, and ASEAN is no exception.
With startups leveraging GenAI to enhance productivity, revolutionise healthcare, and redefine customer engagement, the region is poised to become a hub for AI innovation.
Key sectors such as productivity tools, healthcare, financial services, and education are leading this wave of transformation, creating significant opportunities for startups, enterprises, and investors.
Productivity and business solutions: The backbone of ASEAN’s GenAI ecosystem
Productivity tools are the cornerstone of ASEAN’s GenAI adoption, comprising 26 per cent of all startups surveyed in the ASEAN GenAI Startup Report 2024. These solutions enhance operational efficiency, automate repetitive tasks, and enable smarter business decision-making.
Startups like Singapore-based Kroolo epitomise this trend. Kroolo offers AI-driven project management and workflow automation tools, streamlining team collaboration and boosting productivity.
Similarly, Malaysia’s Shieldbase uses GenAI to provide secure enterprise search and workflow automation, ensuring data privacy while improving business operations.
These innovations are particularly impactful in ASEAN, where small and medium enterprises (SMEs) form the backbone of the economy. By adopting GenAI-powered productivity tools, SMEs can compete more effectively in the global market, overcoming constraints such as limited resources and high operational costs.
However, challenges remain. Thin productivity gains in ASEAN compared to developed markets, driven by lower workforce salaries, make it difficult for some enterprises to justify replacing manual workflows with AI-based solutions. Despite this, the demand for
AI tools tailored to local needs ensures continued growth in this sector.
Healthcare and wellness: Personalising care and improving outcomes
Healthcare is another key sector for GenAI in ASEAN, accounting for 13 per cent of startups. The region’s unique challenges, such as limited access to medical services in rural areas, drive the adoption of AI solutions to improve healthcare delivery.
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Startups like Thailand’s Meticuly are at the forefront, using GenAI to design personalised medical implants that enhance surgical outcomes. In Singapore, KeyReply provides AI-powered virtual assistants that automate healthcare workflows and enable personalised patient care.
These solutions demonstrate the potential of GenAI to address critical healthcare gaps, such as improving diagnostic accuracy, streamlining administrative tasks, and enhancing patient engagement.
GenAI also empowers telemedicine innovations, non-invasive health monitoring, and caregiver support. These advancements are particularly important for ageing populations in Singapore and Thailand, where personalised and accessible healthcare is a growing priority.
Despite the sector’s potential, barriers to adoption include regulatory challenges, the need for extensive datasets, and concerns about data privacy. Startups must navigate these issues carefully while ensuring compliance with local laws and maintaining public trust.
Financial services: Automating and optimising the future of finance
The financial services sector is undergoing a transformation, with GenAI driving automation, personalisation, and enhanced decision-making. This sector accounts for 13 per cent of GenAI startups in ASEAN, reflecting strong demand for innovative solutions in areas like accounting, insurance, and investment.
Startups like Singapore-based Bluesheets are leading the charge by automating financial data workflows, enabling businesses to increase operational efficiency. Similarly, AI-powered trading bots and personalised insurance products are emerging as key applications, providing consumers and businesses with tailored solutions.
GenAI’s ability to detect fraud and improve anti-money laundering (AML) processes is another financial game-changer. By leveraging AI, banks and financial institutions can strengthen compliance and reduce risks, which is especially crucial in a region with diverse regulatory landscapes.
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However, competition from established players remains a significant challenge. Big Tech companies and global SaaS providers are increasingly integrating AI into their financial services offerings, making it critical for ASEAN startups to differentiate through localised solutions and superior customer experiences.
Edutech: Transforming learning experiences
While accounting for a smaller share of GenAI startups (seven per cent), the edutech sector holds immense potential in ASEAN. GenAI enables personalised and interactive learning experiences, addressing the diverse educational needs of the region’s populations.
Startups like Vietnam’s Dory exemplify this innovation by offering AI-generated flashcards and quizzes tailored to individual learning styles. Other applications include adaptive content creation, virtual tutors, and tools for language learning, which are particularly valuable in a multilingual region like ASEAN.
As governments prioritise upskilling and digital literacy, GenAI-powered edutech solutions can play a crucial role in equipping students and professionals with the skills needed for a rapidly evolving job market. Initiatives like Singapore’s AI Verify Foundation and Vietnam’s collaboration with Google to provide AI scholarships further highlight the importance of this sector.
However, challenges such as unequal access to technology and infrastructure disparities must be addressed to ensure equitable adoption of GenAI in education.
The adoption of GenAI across key sectors in ASEAN is transforming the region’s economic and social landscape. Productivity tools, healthcare, financial services, and education are leading this revolution, showcasing AI-driven innovation’s diverse applications and impact.
These sectors represent immense opportunities for startups to create value, address critical challenges, and achieve sustainable growth. Governments and investors, too, have a vital role in supporting this ecosystem by fostering innovation, ensuring regulatory clarity, and enabling equitable access to technology.
As ASEAN’s GenAI ecosystem matures, the region is set to become a global leader in AI innovation, driving meaningful change across industries and improving lives at scale.
The journey from innovation to impact has only just begun.
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This article is the second in a series from the ASEAN GenAI Startup Report 2024. GenAI Fund invests in early-stage GenAI startups across Southeast Asia, focusing on growth strategies and exit opportunities. Stay updated with new articles in this series by subscribing and following us on our channels. For more articles, visit: https://e27.co/category/gen-ai-series/.
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