A World Economic Forum (WEF) projection in its Future of Jobs report in January 2025 stated that eleven million jobs will be created due to artificial intelligence (AI) and information processing technologies from 2025 to 2030. However, in the same period, nine million jobs are expected to be displaced. It is a disruption with such significant ramifications for the global workforce that it was among the talking points during the G7 Summit in Italy in June 2024, where leaders recognized “the need to make sure (AI) enables increased productivity, empowers workers, and creates inclusiveness and equal opportunities” (WEF website).
In relation to opportunities, AI could increase efficiency and productivity byautomating repetitive tasks and freeing up human employees to focus on more creative and strategic work. AI can also boost productivity by automating tasks, analyzing data for insights, and enabling better decision-making. It can also enhance collaboration and personalize experiences, freeing up human resources for more strategic work.
The Southeast Asian region is emerging as a significant hub for AI investments, attracting billions from both domestic and foreign sources. The region is experiencing a surge in AI-related investments, including those in cloud infrastructure and data centers, but local AI startups are lagging in capitalizing on this growth (Channel News Asia, 2 Jan 2025). Examples include Social+ (Thailand), Wiz (Singapore), Sprout Solutions (Philippines), Alethea AI (Singapore), and Bluesheets (Singapore), which are developing solutions for customer engagement, conversational AI, HR management, synthetic media, and financial data automation.
The investment projects by companies such as AWS, Microsoft, and Google range from US $1 to nine billion. Amazon has pledged $9 billion to increase infrastructure in Singapore. Microsoft has invested billions in AI data center infrastructure across the region, including Indonesia, Malaysia, and Thailand. In 2024, Microsoft also committed $1.7 billion to build AI infrastructure in Indonesia and provide AI skilling in Indonesia and Thailand. Singapore is emerging as a key hub for AI development and adoption, with initiatives like OpenAI’s upcoming office and the government’s plan to work with one hundred leading corporations to accelerate AI adoption.
AI will also significantly impact Southeast Asia’s economy and society, potentially boosting the region’s GDP by 10 to 18 percent by 2030 (Kearney 2020). This could translate to a value of nearly US$1 trillion across various sectors with the adoption of AI. The GDP growth is due to increased productivity through AI automating tasks, improving efficiency, and enabling better decision-making, leading to higher productivity across various industries. These include industry sectors like e-commerce, travel, and gaming.
Consultancy firm Access Partnership, in its AI analysis, highlighted that general AI (GAI) may impact 164 million workers in Southeast Asia. Women and Gen Z may face disproportionate impacts, with over 70 percent of women and up to 76 percent of younger workers in roles augmented or disrupted by GAI (Access Partnership, 17 January 2025).
AI use does increase productivity through automation by automating repetitive and time-consuming tasks, such as data entry, scheduling, and even some aspects of customer service. This frees up employees to focus on more complex, creative, and strategic work. For example, AI-powered chatbots can manage basic customer inquiries, reducing the workload for human service agents (Tech Collective, 12 June 2023).
The region is experiencing a surge in AI-driven innovation, particularly in areas like smart automation, manufacturing, and healthcare. However, there is also a growing unease about the potential impact on employment, especially for low-skilled workers (Channel News Asia 28 March 2025). Many workers are worried about their jobs being automated, especially in countries like Indonesia and the Philippines.
However, some see AI as a tool for augmentation, allowing humans to focus on higher-order tasks (Channel News Asia 31 Jan 2024). Several major technology companies are investing in AI in Southeast Asia, including Google, Microsoft, Amazon, and Huawei, with a focus on AI skilling and digital infrastructure. Local governments are also working to build AI-friendly regulatory environments. Southeast Asian governments are partnering with these tech giants to leverage their expertise in building the necessary digital infrastructure for AI development.
The key sectors of AI and automation in Southeast Asia included manufacturing, whereAI is being used to optimize production processes, improve quality control, and enhance supply chain management. For example, AI tools are assisting in diagnosis, treatment planning, and drug discovery, addressing shortages in healthcare professionals. AI is being deployed to automate tasks, detect fraud, and improve customer service. This gap in talent is hindering the region’s ability to fully leverage AI’s potential for economic growth and innovation (Tech for Good Institute 20 Feb 2025).
Southeast Asia also faces challenges in AI development, including talent shortages, digital infrastructure gaps, and the need for robust regulatory frameworks. The region also grapples with ethical considerations and the potential for bias in AI algorithms, as well as the need for inclusive AI development that caters to its diverse cultural and linguistic landscape (South China Morning Post, 22 Dec 2024). Southeast Asian governments are partnering with these tech giants to leverage their expertise in building the necessary digital infrastructure for AI development.
AI-powered tools can create new revenue streams by driving personalized recommendations, enhancing customer engagement, and increasing revenue for businesses. AI and automation are significantly impacting employment in Southeast Asia, leading to both opportunities and challenges. While AI can automate routine tasks, potentially displacing some jobs, it also creates new opportunities and enhances existing roles by improving efficiency and productivity. The region’s rapid adoption of AI and digital technologies is reshaping the skills needed for various jobs, particularly in sectors like manufacturing, logistics, and customer service.
Many AI-related job openings are going unfilled due to a lack of qualified candidates, especially those with deep knowledge in areas like data science, machine learning, and software development (Business Times, 22 June 2024). While technical skills are important, domain-specific knowledge is crucial, as many businesses also need AI professionals who understand their specific industry, such as healthcare, finance, or retail, and can tailor AI solutions to their unique needs (Kearney, 7 October 2020). The lack of skilled AI professionals is impacting businesses’ ability to implement and scale AI projects, potentially slowing down their growth and competitiveness.
However, Southeast Asian countries are implementing various initiatives to address the AI skills gap. These include education and training that has governments and businesses investing in AI training programs to upskill and reskill the workforce. Seeking international collaboration, some companies are exploring global hiring strategies to find talent from other regions (Marsan, 2021).
Among ASEAN member countries, Singapore is emerging as a key hub for AI development and adoption, with initiatives like OpenAI’s upcoming office and the government’s plan to work with one hundred leading corporations to accelerate AI adoption. Several major technology companies are investing in AI in Southeast Asia, including Google, Microsoft, Amazon, and Huawei, with a focus on AI skilling and digital infrastructure. Local governments are also working to build AI-friendly regulatory environments.
To thrive in an AI-driven world, workers and managers need to focus on developing skills that complement AI’s strengths. These include critical thinking, problem-solving, creativity, adaptability, and effective communication and collaboration skills. Technical skills like programming, data analysis, and understanding AI and machine learning concepts are also crucial. By investing in education, implementing social safety nets, and promoting ethical AI development, the region can harness the benefits of AI while mitigating the risks of job displacement and ensuring a more inclusive and prosperous future.
The key skills to complement AI include critical thinking and problem-solving becauseAI can analyze data and identify patterns, but humans are needed to evaluate the information, consider different perspectives, and solve complex, nuanced problems. Creativity and innovation becauseAI can automate many tasks, but human creativity is essential for generating new ideas, developing innovative solutions, and adapting to changing situations. Adaptability and Continuous Learning: Because the field of AI is constantly evolving, the ability to learn new technologies, adapt to changing roles, and embrace lifelong learning is crucial.
Effective communication and collaboration, both written and verbal, are essential for explaining complex AI concepts, collaborating with diverse teams, and fostering collaboration between humans and AI systems. In relation to technical skills, and in particular programming, proficiency in languages like Python, R, and Java, especially for AI and machine learning applications, is highly valuable. In the domain of data analysis, understanding how to interpret and analyze data is essential for leveraging AI insights and making informed decisions. With the scope of AI and machine learning, the knowledge of AI concepts, machine learning models, and relevant tools like TensorFlow or PyTorch can enhance your ability to work with AI systems.
Other complementary AI skills include emotional intelligence with reference to domain knowledge. This refers to having deep expertise in a specific industry or field that enables the individual to apply AI tools and technologies effectively and identify opportunities for innovation. The increasing need for ethical judgment: as AI systems become more integrated into various aspects of life, the ability to make ethical decisions and consider the societal impact of AI is increasingly important. In the process ofeffectively working alongside AI systems, skills in prompt engineering and understanding of AI limitations are crucial for maximizing productivity.
By focusing on these complementary skills, individuals can not only adapt to the changing job market but also thrive in an AI-driven world, contributing their unique human capabilities to innovation and progress.