Sovereign AI needs more than model launches

A recent announcement from Globe Telecom that it will expand its digital and AI capabilities to support Philippine businesses looking to grow across the region is a useful signal of where the digital economy is heading. As reported in philstar.com, the move aligns with the Philippines' broader push for deeper digital integration with its Southeast Asian neighbors. While national AI strategies often make headlines, the substance of digital sovereignty lies in the less visible infrastructure that underpins these ambitions.

The Infrastructure Imperative

The development of sovereign AI is a stated goal for many governments in the region. The aim is to create AI ecosystems that are not wholly dependent on foreign technology, thereby ensuring digital self-determination and economic security. However, focusing only on the development of national large language models or other AI applications misses the fundamental point. The true measure of sovereign AI is not in the models themselves but in the control over the foundational layers of the digital economy.

As the book "ASEAN Rising" notes, the ultimate test is "who controls the compute, the data layer and the digital identity rails that sit underneath everyday economic life." Globe's investment in its data center capacity and other digital infrastructure is a direct engagement with this reality. Without sufficient domestic or regionally controlled computing power, any national AI model will be reliant on foreign providers, which can introduce risks related to cost, access, and data governance.

Data and Digital Identity

Beyond compute, control over data and digital identity systems is a core component of digital sovereignty. As businesses like those served by Globe seek to expand across ASEAN, they will increasingly operate within a complex web of data regulations. The ability to store and process data locally or within trusted regional frameworks is essential for compliance and for building citizen trust.

Digital identity is the other side of this coin. Secure and interoperable digital ID systems are the rails for a modern digital economy, facilitating everything from financial transactions to access to public services. For ASEAN to function as a truly integrated digital market, progress is needed on harmonizing these systems. Efforts like Singapore's Singpass and its integration with other national platforms provide a glimpse of what is possible, but scaling this across a region of ten countries with varying levels of digital development requires sustained institutional focus.

Capital and Execution

Executing a vision for a sovereign or at least more resilient digital infrastructure requires immense capital and deep technical expertise. The expansion by Globe is one example of a private sector firm stepping up to build this capacity. Public-private partnerships will be indispensable across the region, as governments alone cannot fund the scale of investment needed for competitive data centers, fiber optic networks, and 5G rollout.

Investment in talent is just as important. Building and maintaining this infrastructure, not to mention the AI models and services that run on top of it, requires a skilled workforce. National skills development programs, aligned with the long-term needs of the digital economy, are a necessary complement to the physical and institutional infrastructure. The private sector's role in upskilling and reskilling its employees is a critical part of this talent equation.

What to watch

As ASEAN governments continue to announce national AI strategies, watch for the details on investment in the underlying infrastructure. Pay attention to which entities, whether state-owned, domestic private sector, or foreign players, are building and controlling the data centers and digital identity systems. The allocation of capital into these foundational layers will be a more accurate indicator of the future of the region's digital economy than the launch of any single AI model.