NEW YORK, March 27, 2025 / — As Southeast Asia’s artificial intelligence (AI) sector experiences rapid growth, regional governments are increasingly focused on establishing a regulatory framework that both encourages innovation and ensures public trust. According to global technology intelligence firm ABI Research, enterprise spending on business-to-business (B2B) AI solutions in Southeast Asia is projected to reach US$3.2 billion by 2028, growing at a compound annual rate of 13.7%.
This surge is fueled by large-scale investments from international tech giants and hyperscale cloud providers. In response, SEA governments are working to create an environment that supports AI innovation while safeguarding consumer rights and data privacy.
Regulatory Landscape: Watching Global Trends, Preparing Local Responses
“Most Southeast Asian nations still use the ASEAN AI Guide released in 2024 as a foundational reference,” said Benjamin Chan, Research Analyst at ABI Research. “However, governments are closely observing international developments—such as China’s forthcoming AI regulations and the European Union’s comprehensive AI Act—to inform their own regulatory strategies.”
The presence of major AI players like Microsoft, Google, Amazon, Nvidia, and Alibaba in the region has further heightened the urgency for local policies that balance AI expansion with ethical and legal safeguards. With these companies poised to expand operations, SEA regulators are working to manage the resulting wave of AI infrastructure growth and data usage.
National Initiatives and Emerging Legislation
Indonesia, Thailand, and Vietnam have all announced plans to introduce national AI regulations in 2025. Indonesia is expected to release its framework as early as the second quarter of 2025, while Thailand and Vietnam have already issued draft legislation on AI, digital technologies, and personal data protection for public consultation.
Governments are also prioritizing workforce readiness through technical reskilling programs and education reforms. These initiatives aim to develop AI-literate talent pools capable of supporting enterprise-level AI deployment.
Key country-specific strategies include:
Singapore: Enterprise AI subsidies to encourage innovation.
Indonesia: Sector-focused AI pilot programs.
Malaysia and the Philippines: Strengthened public-private partnerships to drive infrastructure and application development.
The Role of Industry Leaders in Shaping Policy
Beyond government action, major tech corporations are expected to play a pivotal role in shaping the regulatory direction of the region. “As countries like Malaysia, Indonesia, and Thailand strive to position themselves as major global AI hubs, tech giants such as Microsoft, Alibaba, Amazon, Google, and Nvidia will likely have a substantial influence on local regulations,” Chan added.
Additionally, support for regional startups and AI innovators—including companies like Wiz.AI, Suki.AI, and AnyMind—is seen as crucial to building a locally inspired AI ecosystem. Fostering collaboration between regulators and private sector leaders is expected to lead to more effective and adaptable governance models.
These insights are part of ABI Research’s latest AI Regulatory Trends in Southeast Asia report, published under its Southeast Asia Digital Transformation research service, which provides market data, analysis, and forward-looking insights.
