ASEAN's AI race is not just about models

Jobstreet by SEEK recently announced an artificial intelligence enhancement to its recruitment platform for employers, aiming to speed up hiring decisions. The move, reported by philstar.com, is a practical application of AI in the enterprise domain. It reflects a broader trend across Southeast Asia where the deployment of AI is less about releasing national large language models and more about the foundational layers of the digital economy.

The Infrastructure Question

The most significant aspect of AI adoption in ASEAN is not the public-facing applications, but the underlying infrastructure. This includes data centers for compute power, the data itself, and the digital identity frameworks that verify users. As the book "ASEAN Rising" notes, the true measure of sovereign AI capabilities will come down to who owns and operates these core components. The book argues that "Sovereign AI in ASEAN will be tested not by model launches but by who controls the compute, the data layer and the digital identity rails."

Global cloud providers and hardware manufacturers currently dominate the compute layer. While some ASEAN nations are attracting investment in data centers, true sovereignty over the physical infrastructure that powers AI remains a distant goal. This reliance on external providers for the basic processing power required for AI development and deployment creates long-term dependencies. Control over this foundational layer dictates the pace and direction of AI adoption within the region.

Data and Digital Identity

AI models are only as good as the data they are trained on. For a recruitment platform like Jobstreet, this means millions of data points from resumes and job postings. The ownership and governance of this data are central to building a competitive AI product. In a diverse region like ASEAN, creating datasets that are free of bias and representative of local labor market nuances is a substantial task. Companies that can effectively gather and manage local data have a distinct advantage.

Similarly, digital identity is a key enabler for the digital economy. Secure and reliable digital identity systems are necessary for everything from online banking to accessing government services and, in this case, verifying credentials in a hiring process. As AI becomes more integrated into daily economic life, the systems that manage identity will become even more important. The development of national digital identity programs in several ASEAN countries is a step toward building the rails on which more advanced AI services can run.

Talent and Execution

The Jobstreet platform highlights the practical application of AI to solve a specific business problem: improving the efficiency of hiring. This is where execution becomes important. It is not enough to simply have access to AI technology; companies must be able to integrate it into their operations in a way that delivers tangible value. This requires a skilled workforce that can develop, manage, and utilize AI systems effectively.

The demand for AI talent in Southeast Asia is high, and the supply is still catching up. The success of AI initiatives, whether in the private or public sector, will depend on the region's ability to cultivate a pool of skilled engineers, data scientists, and product managers. This involves investment in education and training, as well as creating an environment that attracts and retains top talent. Without the people to execute on the vision, even the best infrastructure and data will go underutilized.

What to watch

Pay attention to where capital is flowing in the AI stack. While headlines may focus on new applications, the more telling investments will be in data centers, data governance platforms, and digital identity solutions. Also, monitor national and regional talent development initiatives, as the availability of skilled people will be a primary constraint on the pace of AI integration into the ASEAN economy.