Balancing Innovation and Regulation: AI’s Impact in Southeast Asia

As Southeast Asia drafts its AI governance, workers share concerns over jobs, creativity, and privacy in an evolving digital landscape.

SINGAPORE – For freelance animator Denise Yap, artificial intelligence (AI) presents both inspiration and anxiety. Tools like Midjourney and Stable Diffusion have revolutionized digital art, enabling the rapid creation of innovative visuals. Yet, Ms. Yap laments the absence of regulations requiring consent from artists whose works are used to train AI models.

The past year has seen AI’s rise as a transformative force across industries, sparking debates on intellectual property, job security, and ethical use. While some fear AI’s potential to displace millions of workers, others see opportunities for automation and innovation.

The Global Race to Regulate AI
Nations worldwide are grappling with how to manage AI’s dual promise and peril. The recent UK-hosted AI Safety Summit united over 25 countries, including the US and China, to pledge safe AI development. The European Union is finalizing its AI Act, categorizing AI systems by risk and imposing development requirements.

In Southeast Asia, ASEAN is drafting an AI governance guide aimed at fostering ethical and secure use of the technology. Experts anticipate this regional framework will encourage member states to legislate locally while offering less-developed nations a roadmap for AI advancement.

Concerns Over Jobs and Creativity
AI’s rapid adoption raises fears of economic disruption. A Goldman Sachs report predicts up to 300 million jobs globally could be impacted by AI-driven automation. In countries like the Philippines and Thailand, where call centers and routine administrative roles dominate, millions risk obsolescence.

Thai worker Kulvadee Pounglaph uses Google’s AI chatbot Bard to draft speeches, saving time but worrying about AI’s capacity to replace her role. She advocates for laws mandating human workforce quotas in AI-reliant industries.

Meanwhile, in creative fields, artists like Ms. Yap seek stronger copyright protections. Singapore’s recent Copyright Act amendments attempt to balance innovation with fairness, allowing lawful use of copyrighted works for AI training while safeguarding creators’ rights.

ASEAN’s Unified Approach
ASEAN’s forthcoming AI playbook aims to guide regional regulation while respecting the bloc’s diverse socio-economic landscapes. By emphasizing data protection, cybersecurity, and intellectual property, ASEAN hopes to align its AI standards with global norms.

Dr. Karryl Sagun-Trajano from RSIS notes the importance of regional collaboration: “ASEAN’s contextual approach could serve as a model for balancing technological progress with ethical safeguards.”

Innovation vs. Overregulation
Experts warn that overly rigid AI regulations could stifle innovation, especially for small- and medium-sized enterprises. However, a lack of oversight risks societal harm.

Josh Lee, Asia-Pacific managing director of the Future of Privacy Forum, suggests a hybrid approach: combining voluntary industry standards with targeted legal frameworks. “Poorly drafted regulations could deter investment and innovation,” he cautions, emphasizing the need for clear and adaptable rules.

Striking the Right Balance
As Southeast Asia drafts its AI policies, it faces the challenge of fostering innovation while protecting workers and creatives. For Ms. Yap and others navigating AI’s evolving impact, regulation offers hope for a fairer digital future.

“We need to ensure AI becomes a force for good,” says Dr. Sagun-Trajano. “Thoughtful regulation will bring us closer to that goal.”

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