While the U.S. and China might clash on many fronts, they share a common urgency in regulating artificial intelligence (AI). In March, the U.S. endorsed a nonbinding United Nations General Assembly resolution—sponsored by China—calling for increased oversight of AI. Later, Washington also backed another China-sponsored UN resolution aimed at narrowing the AI capability gap between wealthy and poorer nations.
But where does this leave Southeast Asia, a rapidly growing region with a tech-savvy population?
“We’re a hybrid region,” noted Gullnaz Baig, executive director of the nonprofit Angsana Council, during her address at the Fortune Brainstorm AI Singapore conference. “We embrace each other, but we’re also constantly aware of what our neighbors are doing.”
This cautious yet cooperative approach is fostering a balanced environment between regulation and innovation in Southeast Asia. “Regulation here tends to be swift and decisive,” Baig explained. “However, we also strive to maintain an ecosystem that encourages innovation.”
Globally, different regions have taken varied approaches to AI regulation, which can complicate operations for companies navigating multiple markets. Evi Fuelle, director of global policy for Credo AI, emphasized the need for consistency across these regulations. “Businesses are searching for common ground,” Fuelle said. Despite different approaches, she pointed out that there are significant similarities between frameworks like the EU AI Act and the White House’s executive order on AI.
However, Southeast Asia faces unique challenges compared to regions like the U.S., China, or the European Union. The diversity of development levels and political systems across Southeast Asian countries adds complexity to creating a unified regulatory framework.
Take Singapore, for instance—a small but affluent free-market city-state with living standards surpassing even some of the most developed nations. In contrast, Vietnam’s rapidly growing economy is heavily influenced by state-owned enterprises, while the Philippines boasts a vibrant democracy with a service sector deeply integrated into Western economies.
“It’s challenging to operate across borders,” Baig observed, highlighting issues such as business recognition, cybersecurity, and cross-border data flows as obstacles to fully unlocking the potential of Southeast Asia. She also mentioned that some of the region’s larger markets are hesitant to commit to a regional AI plan, preferring to protect their domestic markets by imposing regulatory barriers.
For example, Indonesia recently prohibited social media platforms from offering e-commerce services, citing the need to protect local small businesses. Additionally, the country reimposed tariffs on Chinese textiles just this week.
Despite these challenges, there is broad agreement among experts on the value of establishing a common framework for AI regulation in Southeast Asia. Zee Kin Yeong, CEO of the Singapore Academy of Law, noted that “there is a fairly consistent set of principles around responsible AI,” which Southeast Asian governments could use as a foundation for their own AI regulations.
“It’s really up to us to take action,” Yeong concluded, “and not just wait for disruption to force our hand.”
Source Link: https://fortune.com/asia/2024/08/07/southeast-asia-countries-work-together-regulate-ai-gullnaz-baig-angsana/
