Why Asean’s AI ambition may lead to widening economic and tech divide

While countries such as Singapore and Malaysia are ahead in the AI race, others like Cambodia and Laos risk being left behind, analysts say

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An illustration of stock market trading using artificial intelligence. Asean is aiming to expand the use of AI across sectors. Photo: Shutterstock

Published: 5:15pm, 21 Nov 2025Updated: 5:31pm, 21 Nov 2025

As countries and economies around the world scramble for a slice of the growing artificial intelligence pie, Southeast Asia is also aiming to usher in a new dawn of higher productivity, fuelled by more investment and research opportunities in the technology.

But tech experts warn that a deepening economic and tech divide is looming as nations in the region adopt AI at a different pace.

On Wednesday, Google DeepMind announced the opening of a research lab in Singapore, focused on researching and developing existing AI models such as Gemini.

“Southeast Asian markets make up some of the highest AI adopters in the world,” Lila Ibrahim, chief operating officer of DeepMind, said. “The fact that the hub here is now in Singapore makes us closer to the ground to be able to respond to that, to develop partnerships and so on.”

It is DeepMind’s first hub in Southeast Asia and third in Asia-Pacific, with its labs in Japan and India having started operations earlier this year.

It joins other tech titans that have invested in AI research and development efforts in the region. In July in Singapore, Microsoft opened a lab and Alibaba Cloud launched its innovation hub. Last year, Microsoft pledged US$2.2 billion to develop Malaysia’s AI infrastructure.

AI could potentially raise the region’s gross domestic product by 10 to 18 per cent by 2030, through benefits such as productivity gains and revenue increments, according to a 2020 study by consulting firm Kearney.

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Why Asean’s AI ambition may lead to widening economic and tech divide

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}While countries such as Singapore and Malaysia are ahead in the AI race, others like Cambodia and Laos risk being left behind, analysts say

While countries such as Singapore and Malaysia are ahead in the AI race, others like Cambodia and Laos risk being left behind, analysts say