Making Southeast Asia’s AI Numbers Stack Up
As AI investment floods into Southeast Asia, governments should be neither AI optimists nor pessimists, but pragmatists.
Southeast Asia is seeing a surge in AI-related investments, including data centres, cloud computing, and new generative AI models.
These investments will be prudent if they deliver a significant increase in productivity; otherwise, they will prove to be more of a bubble than a breakthrough.
To determine the difference, we need to ask what rate of productivity growth would be required for these AI investments to deliver the expected returns, and whether such gains are feasible based on current predictions.
While the answers vary across Southeast Asia, some countries should be worried, as AI investment is booming globally, with five US companies planning to spend over $325 billion on AI in 2025 alone.
governments should be neither AI optimists nor pessimists, but pragmatists
Author's summary: AI investments in Southeast Asia require careful evaluation.
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