D3 Labs, a provider of blockchain solutions for enterprises in Indonesia, has announced a partnership with Tether, a global blockchain platform designed to facilitate the use of fiat currencies in a digital manner.

This partnership aims to assess the deployment of a cutting-edge blockchain-based asset management platform and Web3 ecosystem to transform the fintech industry in Indonesia.

Also Read: What are the possible investment strategies after ETH spot approval?

The parties will also explore new use cases for USDt and EURt tokens, with the possibility of driving their adoption at an institutional and banking level using Real-World Asset (RWA) solutions.

They will also evaluate the development of comprehensive educational blockchain-related events to foster innovation and collaboration within the local blockchain community.

The partnership will also facilitate discussions on collaboration opportunities with industry participants in Indonesia to promote the crypto ecosystem, highlighting the benefits of Bitcoin, Stablecoins, Blockchain, and P2P technology.

Chung Ying (CY), CEO of D3 Labs, said: “We are confident that our efforts will potentially bring significant advancements to the fintech landscape, particularly in asset management. The upcoming launch of SeaSeed Network will enable revolutionary use cases in the Web3 ecosystem. This MoU is pivotal in driving blockchain education across Southeast Asia and beyond.”

D3 Labs aims to leverage programmable assets and blockchain technology to revolutionise the financial landscape. Powered by blockchain technology, programmable assets can bridge the gap between underserved individuals, businesses, and the formal financial sector. They provide broader access to digital financial services, enabling seamless and secure transactions while removing barriers such as geographical limitations, high costs, and lack of transparency and documentation.

“This MoU with D3 Labs could potentially expand our footprint in Southeast Asia as part of our commitment to fostering a thriving blockchain ecosystem and exploring new opportunities for growth and development,” said Paolo Ardoino, CEO of Tether.

Also Read: Tether under scrutiny: A deep dive into cryptocurrency crime allegations

Launched in 2014, Tether facilitates the digital use of traditional currencies (a familiar, stable accounting unit) to democratise cross-border transactions across a blockchain. It allows customers to transact with traditional currencies across a blockchain without the inherent volatility and complexity typically associated with a digital currency.

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Image Credit: D3 Labs.

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With Southeast Asia experiencing unprecedented growth in startup activity and investment, understanding the future of venture capital is crucial for entrepreneurs, investors, and ecosystem players alike.

As part of e27‘s flagship conference, the Echelon X panel discussion, titled ‘Unveiling VC 2.0 or Navigating the Chaos? Decoding the Future of SEA Venture Capital in 2024’, delved into the evolving landscape of venture capital in Southeast Asia, exploring the trends, challenges, and opportunities shaping VC 2.0.

Moderated by Jeremy Au, an investor and podcaster from BRAVESEA.com, the distinguished panellists included Audra Pakalnyte, Partner at First Move; Ray Alimurung, Partner at Kaya Founders; and Ankit Upadhyay, Founder and CEO of A2D Ventures.

The discussion highlighted the potential of early-stage startups, regional resilience, and diversification opportunities, highlighting the importance of understanding local markets for fair valuations, balancing founder dilution with investor stakes, and having supportive regulatory frameworks to foster innovation and technology adoption.

Evolution of venture capital dynamics in Southeast Asia

A distinct approach to VC fundraising emphasises a localised strategy rather than dependence on US-based limited partners (LPs). With significant funding sourced from the Philippines and occasional support from Singapore and the US, VCs in the region remain resilient amid fluctuating US interest rates.

The confidence in Southeast Asia’s resilience fosters a trend towards establishing smaller pre-seed funds. This strategic diversification aims to mitigate risks while capitalising on the lucrative potential of early-stage investments. The 500 Rise report, which forecasts robust growth in Southeast Asian economies, affirms the region’s appeal for long-term investment, particularly in the nascent pre-seed stage.

The evolving landscape sees non-institutional entities like family offices and micro LPs becoming increasingly pivotal in early-stage funding. This diversification counters conventional investment challenges, buoyed by a surge in angel investments despite market downturns.

Impact of technological advances

Upadhyay observes a growing trend in Southeast Asia, where derivative AI products are gaining traction. While these may not match the scale of large-scale models like GPT-5, regional founders are innovating with hyper-localised solutions. This includes applications like GPS-enabled speech-to-text technology tailored to address regional challenges effectively. Upadhyay remains optimistic about these localised innovations, foreseeing enhanced efficiency as broader AI capabilities evolve.

Investors like Pakalnyte stress the importance of discernment in AI investments, emphasising practical applications over hype. Despite strides in talent development and regulatory frameworks, the region faces challenges in deep AI expertise. Pakalnyte advocates for investments that demonstrate genuine technological advancement and tangible benefits across sectors.

Also Read: Funding the future: A guide for social entrepreneurs

Alimurung adopts a cautious approach towards AI investments in Southeast Asia. Reflecting on global trends from events like Y Combinator’s Demo Day, he notes a proliferation of AI startups, albeit with mixed success stories in the region. Kaya’s investment strategy prioritises AI applications that augment existing solutions, such as enhancing communication and data interpretation in B2B and freight forwarding sectors. This practical approach aims to leverage AI to streamline operations and solve specific business challenges effectively.

Promising sectors in Southeast Asia’s VC landscape

From a VC perspective, a consumer-centric approach is pivotal, with a strong focus on health tech and preventive healthcare solutions. This includes innovations in localised consumer products and services, such as beauty and healthcare offerings tailored to regional needs and the expanding middle class.

Strategic initiatives in Southeast Asia drive interest across diverse sectors. There’s a notable push towards enhancing tourism efficiency and rejuvenating traditional industries like agriculture and consumer packaged goods (CPG). Innovations in functional and alternative energy drinks underscore a broader shift towards sustainable agricultural practices and product innovation within the CPG sector.

In the Philippines, the startup ecosystem presents abundant early-stage opportunities across various sectors. Investment strategies emphasise vertical marketplaces, B2B solutions, and critical gaps in sectors such as construction materials and agricultural inputs. Healthcare solutions targeting underserved markets and software-as-a-service (SaaS) platforms for SMEs further highlight growth potential and strategic investment priorities in the region.

Strategic approaches to startup valuation and metrics in VC investments

A balanced approach is crucial in navigating startup valuation. Founders are advised to conduct comprehensive market analysis, examining local, regional, and global benchmarks to gauge fair valuations. Avoiding outdated metrics from previous years, startups should aim for a valuation that aligns with current market trends and investor expectations. This ensures realistic expectations and minimises undue pressure on future performance.

Historically, startups have grappled with overvaluation during market peaks, which risks excessive founder dilution. Conversely, undervaluation can hinder growth potential and investor interest. It’s essential to align valuation with fund constraints and investment mandates to maintain equitable founder stakes and sustainable growth trajectories.

Ultimately, achieving a mutually beneficial valuation involves iterative discussions and adjustments based on market dynamics and negotiation strategies. Understanding these complexities is crucial for founders seeking to secure investments that accurately reflect their enterprise’s potential.

Predictions for Southeast Asia’s venture landscape by 2030

Looking ahead to 2030, stakeholders in Southeast Asia’s venture landscape foresee several transformative shifts and opportunities:

Evolving ecosystem and success stories

There’s a collective aspiration for increased exit stories across the region. Successes in exits are pivotal as they fuel the ecosystem by inspiring new founders and attracting reinvestment from both entrepreneurs and capitalists. This anticipated growth in exits is expected to bolster confidence and stimulate further venture activity, particularly in sectors like AI, agritech, healthcare, and consumer goods. Audra also anticipates advancements in regulatory frameworks, similar to those seen in fintech, which could facilitate broader adoption of innovative technologies.

Philippine perspective and foundational tech

The Philippines is in an advantageous position, being several years behind its regional peers like Indonesia. This lag presents an opportune moment for strategic investments, especially in foundational technologies. Key areas such as APIs for data integration across sectors (e.g., financial services, healthcare, government) are highlighted as critical for enabling the next wave of startups. Regulatory reforms that mandate data accessibility could unlock significant entrepreneurial potential akin to developments observed in more advanced markets.

Also Read: Echelon Philippines opens growth opportunities in the Philippines and beyond

Impact of AI and regulatory changes

AI emerges as a transformative force capable of enhancing operational efficiency and reshaping business landscapes across Southeast Asia. Despite current hesitancy among some businesses regarding tech adoption, the next five years are expected to witness a significant shift towards AI-driven solutions. This transition promises accelerated business processes and cost efficiencies, potentially altering market dynamics fundamentally.

Talent and innovation

The influx of talent is crucial for driving innovation in Southeast Asia. The current surplus of skilled individuals, driven by recent economic shifts, presents a unique opportunity for the region. This talent pool is poised to innovate regionally relevant solutions, fostering sustainable growth and attracting further investment.

In conclusion, the evolution of VCs in Southeast Asia over the next few years promises significant transformation. More VC partners will bring deep operational and entrepreneurial experience, acting not only as financiers but also as mentors and coaches to founders. This approach aims to enrich the ecosystem by providing startups with strategic guidance and expertise.

The growing trend of early-stage VCs led by former founders or operators will further enhance decision-making capabilities and accelerate funding for nascent startups, potentially catalysing broader recognition and increased investment interest from larger VCs.

Ultimately, there is optimism that VCs will be increasingly sought after by investors and communities, highlighting their pivotal role in national development while ensuring relevance and resonance with early-stage founders through strong operational backgrounds.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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TikTok Shop surpasses Tokopedia to become the second-largest e-commerce platform in Southeast Asia in 2023, according to a Momentum Works report.

Shopee still maintained its dominant position with a GMV of US$55.1 billion, securing a 48 per cent market share.

TikTok Shop, which quadrupled its annual GMV to US$16.3 billion in 2023, is now at the same scale as Lazada and Tokopedia. TikTok Shop’s merger with Tokopedia pits it against Shopee at a similar scale.

Also Read: TikTok vs Shopee EC battle in SEA: Unveiling strategies for startups

There is more to this report; while Shopee, Lazada, and Tokopedia all reduced their workforce between 2022 and 2024, TikTok Shop has expanded its workforce to over 8,000 employees since December 2021. It means it optimises its investments for healthier growth in the region.

The findings were part of Momentum Works’s ‘The Ecommerce in Southeast Asia 2024’ report. which provides comprehensive insights into the region’s six key e-commerce markets, analysing the competitive landscape and ecosystem players, including logistics.

The report further revealed that Southeast Asia’s e-commerce market continues its impressive growth, achieving a total Gross Merchandise Value (GMV) of US$114.6 billion in 2023, a 15 per cent increase from the previous year, reveals a study.

Indonesia remains the largest e-commerce market in the region, contributing 46.9 per cent to the region’s GMV. This is a lower share compared to 54 per cent in 2022. However, the archipelago’s e-commerce growth rate of 3.7 per cent is the slowest in the region.

Vietnam and Thailand are the fastest-growing markets, with GMV increases of 52.9 per cent and 34.1 per cent year-on-year, respectively. Vietnam has now surpassed the Philippines to become the third-largest e-commerce market in the region.

The other three key markets, the Philippines, Malaysia and Singapore, all registered double-digit or very close to double-digit growth.

Also Read: The evolution and regulation of social commerce in Indonesia: The TikTok Shop ban

Temu, Pinduoduo’s global arm that shook up the e-commerce landscape in the US, has also entered Southeast Asia in 2023. While it is finding a way to enter Indonesia, its current cross-border model will not be welcome in the country. However, the platform might turn more attention to the region after ROl declines in other markets such as North America and Europe.

The report also highlighted four key trends shaping Southeast Asia’s e-commerce landscape:

Live commerce: Leading Key Opinion Leaders (KOLs) in Vietnam, Thailand, and Indonesia are achieving multi-million dollar sales in single live sessions.

Generative AI: E-commerce platforms in the region are beginning to adopt generative AI applications, enhancing user experience and operational efficiency.

E-commerce enablers: Faced with market constraints and reduced brand market shares on platforms, many e-commerce enablers are diversifying their business models.

E-commerce logistics: Third-party logistics providers are experiencing increased pressure as platforms begin to in-source parcel delivery services.

According to Jianggan Li, Founder and CEO of Momentum Works, “The competitive landscape of e-commerce in Southeast Asia remains dynamic and constantly transforming. With markets like Vietnam and Thailand showing remarkable growth and platforms like TikTok Shop rapidly expanding, it’s clear that innovation and adaptation are key to success in this region. The adoption of generative AI and the evolution of live ecommerce are reshaping the industry, and we are excited to see these trends drive continued growth and opportunities for businesses across Southeast Asia.”

Also Read: GoTo completes merger with TikTok Shop Indonesia

Headquartered in Singapore, Momentum Works builds, scales, and manages tech ventures across emerging markets. The company leverages its extensive knowledge, community, and experience to inform, connect, and enable the tech and new economy ecosystem. Key business areas include ventures, insights, immersions, and advisory services.

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The National Innovation Agency (Public Organisation), or NIA, continues its mission to drive Thailand towards becoming a nation of innovation. This year, NIA is set to host the highly anticipated “STARTUP THAILAND x INNOVATION THAILAND EXPO 2024” (SITE 2024), under the theme “Innovation for Growth and Sustainability.” The event, designed to foster sustainable growth for Thai businesses and startups, will take place from July 22-28, 2024, at the Queen Sirikit National Convention Center in Bangkok.

Dr Krisphaka Bunfueang, Director of NIA, emphasised the significance of this event in advancing Thailand’s position on the global innovation stage. “Our goal is to propel Thailand into the top 30 of the Global Innovation Index by 2030. Through strategic collaborations with both domestic and international partners, NIA aims to support innovation-based entrepreneurs, creating sustainable economic and social impacts. SITE 2024 is a crucial platform to elevate Thai startups and entrepreneurs, fostering continuous innovation,” stated Dr Krisphaka.

Also read: Kitabisa bolsters online giving through improved user journey

Highlights of SITE 2024

1. Forum: A prestigious stage featuring leading Thai and international innovators and experts, providing insights into global innovation trends and inspiring innovation development.
2. Marketplace: An extensive showcase of over 300 startups and innovative entrepreneurs, presenting cutting-edge products and services that align with future business sustainability trends.
3. Business Matching: A pivotal opportunity for startups and innovative entrepreneurs to expand their ideas into thriving businesses, find partners, and receive expert advice for robust business growth.
4. Prime Minister Award: A ceremony recognising and honouring individuals and organisations that have significantly contributed to the development of Thailand’s startup ecosystem and enhanced the potential of Thai startups on the global stage.
5. Startup Thailand League 2024: The national pitching competition, where the top 14 teams from higher education institutions compete under the theme “Change your dreams, create a business with a different idea.”

Also read: Asia’s climate tech: Communicating solutions and avoiding greenwashing

Special feature: SCI Power

This year, SITE 2024 introduces the “SCI Power” expo, promoting the sustainable use of resources through interdisciplinary collaboration. This platform showcases the potential of economic development driven by higher education, science, research, and innovation, inspiring scientific learning and improving the quality of life for all ages.

Dr Krisphaka concluded, “SITE 2024 will ignite new ideas and technologies, enhancing commercial opportunities and business expansion for startups. With support from the government and related agencies, this event will boost Thailand’s international competitiveness and economic reputation.”

To check out the registration details, visit NIA and follow them on Facebook: NIA – National Innovation Agency, Thailand.

Explore more about NIA and its initiatives at NIA.

For more information, contact the National Innovation Agency (Public Organisation) through Dujrapee Chaovanapricha at dujrapee.c@nia.or.th

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This article is sponsored by NIA.

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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With the emergence of blockchain and AI, the digital landscape is starting to change in front of our eyes. Established Web2 business models are starting to get disrupted by Web3 ideas. The emergence of generative AI opens up a lot of business opportunities that were totally
unimaginable before.

Let’s identify the business models poised for disruption in the coming years. Rather than examining each specific model, I want to concentrate on innovative business structures that can transform multiple sectors.

Business models poised for disruption

It has always been clear that blockchain has a huge potential to disrupt traditional business models in finance and beyond. We have experienced different attempts to apply blockchain tech to various business sectors, from logistics to loyalty programs and real estate.

These attempts have been varied in nature; some focused on integrating blockchain into the business infrastructure itself, creating business-specific enterprise blockchains, while others concentrated on bringing more Web3-like business models and tools, such as tokenisation or NFTs, to real-world business.

The enterprise blockchain trend, championed by major corporations like IBM with its Hyperledger blockchain, seems to have lost some momentum. Originally, the idea was to implement closed (permissioned) blockchains in businesses requiring coordination between different units, automated business logic execution, and enhanced transparency.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

While this approach has seen moderate success in financial applications, such as interbank settlement networks, its future might hinge on the adoption of Central Bank Digital Currencies (CBDCs).

However, the trend is currently being overshadowed by the use of open blockchain tools and techniques, such as tokenisation, in traditional business models. This shift is quite telling, as the core principle of blockchain technology is openness—an aspect that holds significant potential for improvement.

Areas for disruption: Finance, marketing, and social networking

One of the major areas for disruption is, of course, traditional finance. There’s a tangible improvement when we put finance applications on a blockchain footing. A lot of inefficiencies in traditional finance get immediately eliminated when underpinned by blockchain. The execution of traditional finance business logic, as seen in trade finance, can be fully automated through blockchain smart contracts.

Blockchain also creates financial markets that are available 24×7, which significantly improves on traditional platforms. For the new generation of millennials, it is probably totally unclear why they cannot trade Tesla stock on Sundays (but can trade any crypto token any time they wish).

It is inevitable for finance to move to blockchain rails; it is just a natural development fueled by the obvious improvements that blockchain brings to finance, which will be unfolding in the next decade.

Tokenisation can also be a great marketing tool for businesses. NFTs have already been used by major businesses to engage customers. Triggered by the obvious success of meme coins (tradable crypto assets associated with popular memes), we will see similar instruments being used in traditional business marketing and customer acquisition.

Loyalty reward programs can be tokenised, and token airdrops can be used to onboard new customers. It is important to note that open blockchain tools, which are publicly available, are required for this. No blockchain integration into business structures themselves is needed; rather, traditional Web2 businesses start to absorb Web3 ideas and instruments into their operations.

Also Read: Mastering the art of fundraising: Winning strategies to engage investors

Another major area for disruption is social networking. Web2 has been successful in onboarding billions of users into major social networks, but now their inefficiencies and drawbacks are becoming more apparent. Being a very traditional centralised structure, they can be heavily abused when moderation algorithms fail to deal with bot activity efficiently.

This, in turn, leads to tighter centralised control over the posted content and censorship. Social network users do not pay to use it since they are essentially the product; their private data, shared with the network, is used for targeted advertising and resold without explicit consent from the user. Emerging Web3 social networks allow explicit control of all the data shared by the user, which can be monetised by the users themselves.

We should also mention the (in)famous Metaverse narrative, which is also closely connected to blockchain. Although its successful adoption may be more distant, an immersive andall-encompassing digital experience is something that the digital world is converging towards. Despite its early setbacks, we will definitely see a revival of interest in the Metaverse, fueled by progress in hardware and AI.

Final thoughts

The disruption brought about by AI will be massive, and it is really hard to estimate its scale yet. It really depends on how fast we will be able to achieve Artificial General Intelligence (AGI), whose potential role in human progress can probably only be compared to the invention of the wheel.

Large Language Models and generative AI will be disruptive in changing roles in the digital world; most mundane tasks will be handled by LLMs, which can free up a lot of human resources to deal with the tasks that AI can’t handle yet.

Despite the current rather authoritarian trends in the world, which are also partially enabled by IT technology, we can see that the ideas of openness that blockchain brought about are finding their way into the business world, and this trend will be growing.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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The world of cryptocurrency is wild. It’s full of crazy ideas, high risk, and yes, even some laughs. Lately, meme coins, digital currencies based on internet jokes and pop culture have been all the rage. They’ve drawn in investors with their wild price swings and passionate online communities.

Dogecoin, the Shiba Inu dog that started it all, might have begun as a lighthearted jab at Bitcoin, but some meme coins have skyrocketed in value. This leaves many wondering: how do you invest in this wacky but risky corner of the crypto market?

The truth is, there’s no guaranteed way to win with meme coins. Their value depends on a weird mix of things, so the usual ways of judging investments don’t apply as much here. A strong community and lots of trading can be good signs, but you need to look deeper when it comes to these crypto jokesters. Here are some key things to consider, along with a healthy dose of caution:

Looking beyond the hype: A strong community

A big and enthusiastic online following on Reddit, Discord, or Telegram can be a good thing but don’t just look at the surface. Here’s what you really need to see:

• Real talk, not just memes: A good community talks about the memecoin’s future plans, how it might be used for more than just laughs, and how it might work with other projects. Look for people who genuinely care about the coin’s future, not just those mindlessly cheering it on.
• Coders on the case: A dedicated team actively working on the tech behind the meme coin is a good sign. Look for frequent updates, code posted on platforms like Github, and clear ways to talk to the developers.
• Keeping things clean: A well-moderated online community helps get rid of negativity, false information, and scams where people try to pump up the price and then dump their coins for a quick profit. Look for active moderators who keep the conversation healthy.

Trading volume: A double-edged sword

Lots of trading means there’s a lot of interest in the meme coin, which can make the price go up in the short term. But be careful:

• Fake pumps: Beware of sudden spikes in trading that come out of nowhere. These could be the work of “whales” (people with huge amounts of coins) trying to drive the price up so they can sell for a quick profit.

Also Read: How your business can benefit from the NFT phenomenon

• Slow and steady wins the race: Look for trading that gradually increases over time. This suggests real growth, not just a temporary burst of excitement.
• Big exchanges are good: Being on well-known cryptocurrency exchanges makes the meme coin more visible and easier to trade, which can lead to higher trading volume.

Beyond the basics: The x-factors

While a strong community and active trading are important, there are other things that can affect a meme coin’s success:

• Celebrity tweets: A tweet from a big name like Elon Musk can send a meme coin’s price through the roof (remember Dogecoin?). However, relying on celebrities is risky because their interest can fade fast. Ideally, the celebrity actually holds and believes in the meme coin.
• Real-world use: Memecoins that have a real-world purpose, like being used in online games or making payments, are more likely to stick around for the long haul than those that are just hype.
• Fear of missing out (FOMO): This is when people buy something because they’re scared they’ll be left behind if they don’t. Be careful of buying sprees fueled by FOMO, and always do your own research before investing. We’ve seen this happen a lot with meme coins on Solana lately. Hopefully, they’ll show more stable growth later this year.

Laughter is great, but don’t invest based on it

Memecoins can be a fun and interesting part of the crypto world. They create a sense of community and offer the chance to make a lot of money (or lose it all). But if you only invest in them because they’re funny or because there’s a lot of buzz online, you’re setting yourself up for disaster.

By looking at data like how engaged the community is, trading volume, and other important factors, you can approach meme coins with a bit more caution and maybe even some success (without the tears).

Remember, a good meme might make you laugh, but it shouldn’t be the only reason you invest your hard-earned money. And hey, maybe someday we’ll even get that Dogecoin ETF!

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page.

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As we approach the latter half of 2024, the cryptocurrency landscape is poised for significant transformation. Among the myriad of emerging trends, one stands out as particularly revolutionary: the intersection of artificial intelligence (AI) and blockchain technology. This convergence promises to redefine the crypto ecosystem, offering unprecedented opportunities and challenges.

In this opinion piece, I will delve into why this trend is set to dominate the crypto space, backed by data, expert insights, and a personal perspective on its potential impact.

The convergence of AI and blockchain: A new frontier

The integration of AI and blockchain is not merely a speculative trend; it is a burgeoning reality that is already beginning to reshape various sectors. AI, with its ability to process vast amounts of data and learn from it, complements blockchain’s decentralised, transparent, and secure nature. Together, they form a powerful synergy that can address some of the most pressing issues in the digital world.

One of the most compelling aspects of this convergence is its potential to revolutionise smart contracts. Traditional smart contracts, while innovative, are limited by their static nature. AI can enhance these contracts by making them dynamic and adaptive, capable of learning from past transactions and optimising future ones. This could lead to more efficient and secure decentralised finance (DeFi) applications, reducing the risk of bugs, hacks, and errors that have plagued the sector.

Market data and expert insights

The market’s response to the integration of AI and blockchain has been overwhelmingly positive. According to a report by Gemini, AI-related tokens have seen a notable surge in prices, signalling growing interest and confidence in this emerging trend. This is further corroborated by data from CoinMarketCap, which highlights a significant increase in institutional investments in AI and blockchain projects.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

Experts in the field are equally optimistic. Scott Tripp, CEO of Neurai, an AI Startup based in Singapore, notes that the combination of AI and blockchain is leading to innovative projects that merge web3 monetisation, provenance tracking, and digital content attributions. He predicts that AI agents will soon handle most on-chain payments, interfacing with blockchain’s user experience and presenting transactions in a human-friendly manner.

Anndy Lian, a best-selling book author, echoes this sentiment, emphasising the potential of AI and blockchain to create decentralised compute protocols and marketplaces for AI outputs. He believes that while early activity may be driven by hype, the long-term promise of this combination is immense.

Real-world applications and use cases

The practical applications of AI and blockchain are vast and varied. One of the most promising areas is in the realm of secure data solutions. AI can enhance blockchain’s ability to provide secure, transparent, and tamper-proof records, making it ideal for industries such as healthcare, finance, and supply chain management.

In healthcare, for instance, AI can analyse patient data stored on a blockchain to provide personalised treatment plans, predict disease outbreaks, and streamline administrative processes. This not only improves patient outcomes but also reduces costs and inefficiencies.

In finance, AI-powered blockchain platforms can offer more accurate risk assessments, fraud detection, and automated compliance, making financial services more secure and accessible. The integration of AI can also enable more sophisticated trading algorithms, leading to better investment strategies and higher returns.

Supply chain management is another area where AI and blockchain can have a transformative impact. By combining AI’s predictive analytics with blockchain’s transparency, companies can optimise their supply chains, reduce waste, and ensure the authenticity of products. This is particularly important in industries such as pharmaceuticals and luxury goods, where counterfeiting is a major concern.

The role of regulation and security

As with any emerging technology, the integration of AI and blockchain is not without its challenges. One of the primary concerns is regulation. The decentralised nature of blockchain and the autonomous capabilities of AI pose significant regulatory hurdles. Governments and regulatory bodies will need to develop new frameworks to address issues such as data privacy, security, and ethical considerations.

Also Read: Boosting efficiency and care: How AI is transforming medical records

Security is another critical concern. While blockchain is inherently secure, the addition of AI introduces new vulnerabilities. AI algorithms can be manipulated, and the data they rely on can be corrupted. Ensuring the security and integrity of AI-powered blockchain systems will require robust encryption, continuous monitoring, and advanced threat detection mechanisms.

The future of AI and blockchain

Looking ahead, the future of AI and blockchain appears bright. The potential for these technologies to transform industries and create new economic opportunities is immense. However, realising this potential will require collaboration between technologists, regulators, and industry stakeholders.

One of the key drivers of this trend will be the development of AI-powered decentralised applications (dApps). These applications can leverage the strengths of both AI and blockchain to offer innovative solutions in areas such as finance, healthcare, and supply chain management. For instance, AI-powered dApps can provide personalised financial advice, automate complex supply chain processes, and offer real-time health monitoring and diagnostics.

Another important aspect of this trend is the role of AI in enhancing blockchain’s scalability. One of the main challenges facing blockchain technology is its limited scalability, which restricts its ability to handle large volumes of transactions. AI can help address this issue by optimising transaction processing and improving consensus mechanisms, making blockchain more efficient and scalable.

Personal perspective

From a personal perspective, the convergence of AI and blockchain represents a significant leap forward in the evolution of technology. As someone who has closely followed the development of both AI and blockchain, I am excited about the possibilities that this integration offers. The potential to create more secure, efficient, and transparent systems is truly transformative.

However, it is important to approach this trend with a balanced perspective. While the potential benefits are immense, there are also significant challenges that need to be addressed. Ensuring the security and integrity of AI-powered blockchain systems, developing appropriate regulatory frameworks, and addressing ethical considerations will be critical to the success of this trend.

In conclusion, the intersection of AI and blockchain is set to be the standout trend in the crypto space in the latter half of 2024. This convergence promises to revolutionise industries, create new economic opportunities, and address some of the most pressing issues in the digital world.

By leveraging the strengths of both technologies, we can create more secure, efficient, and transparent systems that have the potential to transform our world. As we move forward, it will be essential to address the challenges and ensure that this trend is developed in a responsible and ethical manner.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page.

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As artificial intelligence (AI) continues to revolutionise industries worldwide, Southeast Asia (SEA) finds itself at a critical juncture.

A recent study by Deloitte states that developing economies in the APAC region are actively implementing generative AI at a faster pace, with a 30 per cent higher share of gen AI users embracing AI with more enthusiasm compared to developed nations with more digitally native workers.

The report cautions that businesses that fail to adopt AI will feel the impact; CEOs and senior leaders should not only focus on integrating generative AI to enhance efficiency but also reconsider their processes to adapt to the AI surge and avoid disruption. 

Interestingly, despite the increased usage of generative AI by employees, businesses may not be maximising the full benefits of their investments in AI. In fact, only half of surveyed employees felt they were fully utilising the potential of generative AI. Out of Searce’s 200+ customers in South East Asia, only five per cent of them have Gen AI use cases deployed in production. 

With companies jumping onto the AI bandwagon, it’s imperative that they are clear on their strategies for AI, maximising their investments to achieve business results and to generate revenue. 

We’ve observed  four categories of companies on the AI journey:

• AI-Explorers: Companies exploring initial use cases with varying degrees of data readiness to harness the power of AI and machine learning (ML) 
• AI-Augmented:  Companies seeking to drive operational efficiencies, using AI & ML to support their operations, with AI secondary to go-to-market (GTM) strategies
• AI-Powered: Companies utilising AI for competitive advantage, using large language models (LLM) to power their primary GTM offerings with products/services seamlessly embedded with AI
• AI-Disrupters: Companies creating new markets, producing LLMs or core AI products for external parties to utilise

We observe that many enterprises fall under the AI Explorer category while most of the investment is going to AI Disrupter organisations. This has created an immediate urgency for organisations to adapt to products/services built by AI Disrupters, but there is a lack of clarity on impactful use cases. 

Adoption framework

To drive the strategic adoption of  AI amongst our clients, we have been deploying the above framework to drive the strategic adoption of AI in businesses. The journey begins with the Discovery phase, where organisations define use cases, conduct design thinking workshops, and create innovation prototypes. This lays the groundwork for understanding how AI can address specific business needs.

Also Read: Transforming customer service: AI’s ‘artificial empathy’ holds the key

The second phase focuses on establishing a solid data foundation and building a compelling business case. This involves checking and upgrading the data infrastructure, calculating ROI, defining expected outcomes, and establishing AI foundations.

The third phase is about execution, with MVP launches, A/B testing, and business case validation. Finally, the framework culminates in scaling and optimising AI solutions, building machine learning operations (MLOps) end-to-end, and scaling business cases.

By following this structured approach, companies can mitigate risks, align AI initiatives with business objectives, and avoid costly missteps in their AI adoption journey.

Cost levers during adoption

The adoption of AI and machine learning technologies involves several key cost levers that organisations must consider for effective budgeting and implementation. 

Technology Costs encompass the core infrastructure needed to run AI systems. This includes expenses for LLMs, CPUs, GPUs, and SaaS subscriptions. 

Additionally, organisations need to factor in costs for API gateways, data acquisition, storage, and processing. The implementation of testing frameworks and MLOps pipelines also falls under this category. Security and Compliance form another crucial cost centre, covering data privacy measures, regulatory approvals, and potential issues such as legal pushback and litigation.

This area also includes the development of ethical and explainable AI systems, which is becoming increasingly important. Lastly, organisational costs involve addressing the skills gap through training, managing change within the company, facilitating cultural shifts, and adapting business models and GTM strategies.

By understanding and planning for these diverse cost levers, organisations can create a comprehensive framework for assessing and managing the financial implications of AI adoption, ensuring a more strategic and cost-effective implementation.

Measuring the ROI 

The framework presented in this image outlines a systematic approach to calculating the ROI of AI adoption, which can be crucial for understanding and managing the costs associated with implementing AI solutions. 

The journey begins with reimagining existing processes through an AI lens, identifying key impact KPIs and their current costs, and mapping out potential business cases for the project. This lays the foundation for a comprehensive understanding of where AI can add value. The identified KPIs and associated costs will anchor the overall ROI calculations. 

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

The second step involves selecting appropriate technologies, and benchmarking KPIs with AI to create best and worst-case scenarios, which may involve proofs of concept, pilots, or high-impact, low-effort (HumanInTheLoop) initiatives. Partnering with the right set of consulting organisations and using the right technology vendor has a significant impact. 

The third step focuses on mapping costs across all three cost levers, identifying both one-time and recurring expenses, and validating the business case by mapping these costs to an ROI model benchmarked against the identified KPI costs.  

The final step is about execution with tight governance, continuous monitoring of benchmarked KPIs, and leveraging MLOps to improve metrics continually. This structured approach ensures that organisations not only understand the full spectrum of costs associated with AI adoption but also have a clear path to measuring and optimising their return on investment.

Overall, the adoption of AI should ideally lead to lower operations costs, increased revenue, or innovation that supports growth metrics for the organisation. 

Managing your AI deployments 

AI adoption involves more than just initial implementation — ongoing management is crucial for maintaining performance and value. AI models, once trained, remain static, but they operate in a dynamic world where reality continuously diverges from the initial training data. This mismatch leads to a gradual decrease in model accuracy over time. To counter this, periodic retraining becomes necessary to maintain performance levels.

Effective AI management requires continuous monitoring and reinforcement. Organisations need to regularly assess model outputs, collect new data, and prepare it for model updates. This ongoing process is essential for keeping AI solutions relevant and accurate.

These guidelines emphasise the importance of viewing AI adoption as a continuous journey rather than a one-time deployment. By recognising the need for persistent maintenance and adaptation, companies can better prepare for the long-term commitment required to maximise the benefits of their AI investments.

The path forward

For SEA businesses, the path forward involves embracing AI not just as a tool but as a strategic asset. This requires a commitment to continuous learning and adaptation. Companies must invest in training their workforce, ensuring they have the skills and knowledge to harness AI’s full potential. This investment pays off in the form of increased efficiency, innovation, and competitive advantage.

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In today’s rapidly changing business environment, having a dynamic and engaged workforce is more critical than ever. One way to achieve this is by delegating authority and empowering employees. 

Delegating authority involves entrusting specific tasks and responsibilities to your team members, while empowerment consists of giving them the autonomy and authority to make decisions and take ownership of their work.  

But it can be scary

Delegation and empowerment can be scary if you are used to being in control of every aspect of running your business. But failing to delegate only holds back your business’s potential. 

However, if you are not ready to delegate work entirely, you could follow the concept significant businesses rely on, such as leveraging business software. However, you will want to pick an industry-specific solution to ensure you get the most out of your investment. 

For example, if you are in the brewery business, a tool like Ollie can help you delegate some of your operations. This way, your employees will have some form of autonomy while maintaining some level of control by limiting their autonomy through the tool. 

Importance of delegating authority and empowering employees

Better time management

Delegating authority to your team members can help you manage your time more effectively. Better time management becomes possible because you can get some tasks off your hands so you can focus on tasks and activities that matter the most. 

Moreover, when you delegate authority, everyone on the team will have to handle what they can, which means you will have more work done within a specific time rather than having one or a few people doing all the hard work.

Improved team morale

Delegating authority and empowering employees can also positively impact team morale. When team members are given a sense of ownership and responsibility for their work, they feel more invested in their jobs. 

When employees feel empowered, they are more likely to communicate with their colleagues, share their ideas and expertise, and work together to achieve common goals, leading to a more cohesive and effective team.

Also Read: The unsung hero: Why every CEO needs a strong second-in-command

Increased productivity

Improved team morale helps create a sense of ownership and responsibility. In other words, your employees start looking at your organisation’s success as their own, ultimately leading to increased productivity. 

Empowered employees are also more likely to take risks and be innovative. They are not afraid to try new approaches and experiment with different methods, which can lead to better outcomes, improved processes, and more effective solutions.

Better decision making

When team members feel empowered, they will be more eager to share their minds with you, leading to a culture of collaboration and shared decision-making where everyone’s perspectives and expertise are valued.

Having more than one or just a few people involved in decision-making benefits from diverse perspectives and insights, leading to better decisions, improved problem-solving, and more innovative approaches to business challenges. 

You do not always have to go with all the decisions your team shares, but you will definitely find ideas you may never have thought about on your own occasionally.

Skill development

Empowering employees allows them to develop new skills and take on new challenges. This, in turn, helps build their confidence and expertise and can benefit your organisation in the long term.

Employees want to work in an organisation where they feel their careers are advancing. This can lead to higher job satisfaction and lower turnover rates. You could also consider coupling delegation and empowerment with training to make your employees more effective at their responsibilities and further promote job satisfaction.

Succession planning

Delegating authority and empowering employees can also be crucial in succession planning. By developing your team members’ skills and providing them with opportunities to grow, you can ensure that your organisation is well-prepared for future challenges and transitions.

This can lead to a smoother transition and a more stable leadership team. It also helps to retain institutional knowledge and expertise.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page.

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The post Boost your business: How delegation and empowerment lead to success appeared first on e27.

Dear reader,

The turmoil at Indonesia-based waste management startup Octopus highlights the severe consequences of financial mismanagement and poor leadership.

The company, led by CEO and co-founder Moehammad Ichsan, has failed to pay employee salaries for months, leading to widespread distress among its staff. Despite assurances of forthcoming payments, Ichsan has remained unresponsive since mid-May. This lack of communication has exacerbated the crisis, leaving over 100 employees owed approximately 7 billion rupiah (US$428,800) in unpaid wages.

The company’s downfall was marked by significant financial missteps, including excessive hiring and overcompensation, which rapidly drained its resources.

After securing US$5 million in a July 2022 funding round, Octopus faced immediate cash-related troubles, ceasing payments to vendors and employees. This financial strain led to the termination of partnerships with high-profile clients and left the company non-operational.

Efforts to sell assets and explore mergers have not alleviated the financial woes, with proceeds from asset sales covering only a fraction of the debts. The lack of formal bankruptcy declaration further complicates the resolution of financial obligations. Employees, driven to desperate measures to survive, are now seeking legal action against Ichsan and the company.

The situation at Octopus serves as a stark reminder of the critical importance of transparent financial management and responsible leadership in maintaining business sustainability and employee welfare.

Sainul,
Editor.

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NEWS

Octopus sinks amid unpaid staff wages, stalled acquisition talks
The Indonesia-based waste management startup has not paid employee salaries for months, and it has been exploring M&A and the sale of its assets to settle outstanding wages.

SoftBank acquires UK AI chipmaker Graphcore
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Temasek returns to black in FY 2024
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Grab’s Trans-cab buy would significantly reduce competition, watchdog says
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Nika.eco bags funding to develop AI-powered climate data and insights platform
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Singapore gets Net Zero-X exchange for investors to invest in climate tech projects
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Tesla reportedly delays ‘robotaxi’ event to October
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X is building a ‘dislike’ button for downvoting replies
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FEATURES

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Rey seeks to redefine health insurance in Indonesia with a Netflix-style subscription model
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FROM OUR CONTRIBUTORS

Embracing AI in Southeast Asia: The strategy for avoiding cost overruns
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Can you build an app without coding? My experiment might surprise you
Creating a kids’ meditation app with AI and no-code tools provided a rewarding challenge, allowing me to develop a valuable resource for my children.

Skill-based hiring vs industry-based hiring: How should one decide?
Before an employer starts the hiring process, it is imperative to note the pros and cons of both to proceed.

In Tokyo, DAOs aren’t the future – They’re the present
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Asia’s tech potential: How self-taught education is shaping the next generation of developers
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Boosting efficiency and care: How AI is transforming medical records
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Beyond the hype: Taking Gen AI mainstream with next-level automation
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FROM THE ARCHIVES

The journey of Alternō: A tale of innovation, sustainability, and friendship
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The future of mobility is in public-private collaboration
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How Radiant1 helps hotels optimise room rate pricing in real time, maximise revenue
Radiant1’s USP lies in its ability to synthesise multiple datasets and turn those into actionable recommendations and automated action.

5 things to consider before launching a business in Taiwan
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‘HUGgy’ng innovation: Dolbomdream’s tech vest aims to bridge mental healthcare gap
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The case for coexistence on the journey to core modernisation
The coexistence approach offers banks the opportunity to blend legacy systems with modern tech for a balanced transition.

Beyond Singapore and Indonesia, SEA startups are working their way out of global crises
Singapore and Indonesia continue to top startup funding list despite ongoing slowdown. What does this mean for the rest?

Why the right framework creates impactful apps
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Why these startups focus on informal plastic waste workers in the fight against climate crisis
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How to hack product growth and user acquisition in Thailand
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The post Ecosystem Roundup: Indonesia’s Octopus in dire straits | Grab, Trans-cab asked to address competition concerns appeared first on e27.