Southeast Asia is well-positioned to accelerate artificial intelligence (AI) adoption thanks to growing digital infrastructure, a young tech-savvy population and increasing regional cooperation, Singapore’s Digital Development and Information Minister Josephine Teo said on Thursday.

Speaking at a digital summit in Jakarta, Teo said ASEAN was making progress across the key pillars needed for widespread AI deployment, including infrastructure, workforce capabilities, governance frameworks and international cooperation.

“Overall, Southeast Asia is in a good position to deploy AI widely,” she said. “But we will not get there automatically.”

Teo said data center capacity across the region is expected to more than triple between 2025 and 2030, while expanding submarine cable networks are strengthening digital connectivity.

Beyond physical infrastructure, she highlighted the importance of software and policy layers, citing SEA-LION, an open-source Southeast Asian language model that has been downloaded more than 200,000 times.

She noted that businesses across sectors are increasingly integrating AI into operations, with banks using the technology for fraud detection and manufacturers deploying it to optimize supply chains and reduce downtime.

Companies such as Kata.ai are also developing AI tools to improve customer service in Bahasa Indonesia.

Teo welcomed efforts by the Philippines, ASEAN’s chair this year, to promote AI adoption among micro, small and medium-sized enterprises (MSMEs).

She added that the ASEAN Foundation aims to equip 100,000 MSMEs with digital tools.

The minister also highlighted examples of grassroots innovation, including AI-powered platforms developed by university students in Brunei and Indonesia to support dementia care and provide real-time flood alerts.

However, Teo warned that two major challenges could derail ASEAN’s AI ambitions: restrictive data policies and a narrow interpretation of technological sovereignty.

Calling data the “lifeblood of AI”, she said companies need access to quality data and trusted cross-border data flows to develop reliable AI systems and scale their businesses regionally.

While safeguards are necessary to protect personal information and national security, excessive restrictions could hinder innovation, particularly for smaller firms lacking resources to navigate complex compliance requirements, she said.

Teo pointed to the proposed ASEAN Digital Economy Framework Agreement (DEFA) as a key initiative to establish common digital trade rules and facilitate trusted cross-border data flows.

“Collectively, we should help these small companies thrive and scale, whether in Jakarta, Bandung, Hanoi or Bangkok,” she said.

On AI sovereignty, Teo cautioned against viewing the issue solely through ownership of the entire AI technology stack, including chips, models, data and applications.

“That view, while understandable, is neither realistic nor helpful for most countries,” she said, noting the high costs involved and the global nature of AI supply chains.

Instead, she said countries should focus on three priorities: ensuring the ability to govern and deploy AI for public benefit, maintaining autonomy in technology partnerships and procurement decisions, and strengthening domestic AI ecosystems through research institutions, developer communities and investment networks.

Looking ahead, Teo said Singapore, which will assume the ASEAN chairmanship next year, plans to build on current initiatives by expanding AI adoption among businesses and workers, investing in shared digital public goods such as language models and governance toolkits, and strengthening regional mechanisms for data flows and AI governance.

“This is not just Singapore’s agenda. This is ASEAN’s agenda,” she said, adding that the region’s strength lies in cooperation despite its diversity.

“As long as ASEAN moves ahead in step with one another, we can achieve much more.”

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