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Harnessing AI for ASEAN’s Future: Governance, Adoption, and Sustainability under the DEFA

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  • Hilmy Priliadi

    (Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract

Artificial intelligence (AI) presents transformative opportunities for ASEAN, as its market is projected to reach US$30.30 billion by 2030. AI adoption is expected to contribute 10%–18% of ASEAN’s gross domestic product, benefiting key sectors such as manufacturing, health care, and energy. However, AI integration also highlights challenges, including governance gaps, disparities in AI readiness amongst ASEAN Member States, data governance issues, and sustainability concerns. While ASEAN has made progress through initiatives like developing the ASEAN Guide on AI Governance and Ethics, policy fragmentation and uneven AI adoption across ASEAN Member States underscore barriers to inclusive growth. The ASEAN Digital Economy Framework Agreement (DEFA) provides an opportunity to align AI governance in ASEAN with global standards, ensuring a regulatory framework that balances innovation with accountability. This brief highlights AI’s role in ASEAN’s digital economy and proposes policy recommendations to strengthen AI governance; enhance the population’s digital skills; support AI adoption amongst micro, small, and medium-sized enterprises; promote culturally diverse datasets; and advance sustainable AI infrastructure. By fostering regional cooperation and embedding AI-related commitments into the DEFA, ASEAN can harness AI’s potential while actively mitigating its risks. Latest Articles

Suggested Citation

  • Hilmy Priliadi, 2025. "Harnessing AI for ASEAN’s Future: Governance, Adoption, and Sustainability under the DEFA," Working Papers PB-2025-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:pb-2025-01
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