NEW YORK, March 26, 2025 – As Artificial Intelligence (AI) adoption accelerates across Southeast Asia, regional governments are approaching a pivotal moment: how to support rapid AI-driven innovation while ensuring proper regulatory safeguards. According to global tech 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 13.7% CAGR.
This surge in AI investment—fueled by global hyperscalers like Microsoft, Google, Amazon, Nvidia, and Alibaba expanding their operations in the region—has prompted regulators to act. Countries are now developing AI governance frameworks to protect data privacy and consumer rights without stifling technological progress.
“Southeast Asian regulators are still largely aligned with the 2024 ASEAN AI Guide,” says Benjamin Chan, Research Analyst at ABI Research. “However, many are watching closely as global powers like China finalize their own AI regulations and the EU rolls out its AI Act. These developments will inform SEA countries’ next steps in shaping national policies.”
Wave of Local Regulations on the Horizon
Several Southeast Asian countries are expected to introduce formal AI regulations in 2025:
Indonesia has announced plans to release its national AI policy as early as Q2 2025.
Thailand and Vietnam have published draft laws covering AI, digital technologies, and personal data protection for public consultation.
In addition to regulatory controls, there’s growing recognition of the need to build an AI-ready workforce. Governments across the region are implementing education reforms and technical reskilling initiatives to equip workers with the skills needed to operate and apply enterprise AI systems effectively.
Policy Tools Driving Regional AI Growth
Southeast Asian countries are deploying a variety of policy instruments to encourage AI adoption, including:
Enterprise AI subsidies in Singapore
Industry-specific AI pilot projects in Indonesia
Public-private partnership initiatives in Malaysia and the Philippines
These strategies reflect a broader regional commitment to nurturing an AI ecosystem that is not only competitive globally but also inclusive and secure.
Tech Giants & Startups to Play Key Role in Shaping Regulations
Beyond national governments, major technology firms are expected to influence the region’s AI policy landscape. Chan notes that companies like Microsoft, Alibaba, Google, Amazon, and Nvidia are poised to shape regulatory trends through deeper investment and partnerships.
At the same time, Southeast Asia’s homegrown innovators such as Wiz.AI, Suki.AI, and AnyMind are helping to drive locally inspired AI development. Public-private collaboration is emerging as a key strategy for advancing the region’s AI agenda while preserving sovereignty and ensuring broad economic benefit.
