Voice of ASEAN Enterprises: Outlook on Data, AI, Cybersecurity, and Sustainability
As ASEAN gears up to become a global economic powerhouse by 2030, the 2023/24 AIBP ASEAN Enterprise Innovation Market Overview offers insights into the region’s digital transformation. The Philippines currently leads with a 5.6% GDP growth in 2023, becoming Southeast Asia's fastest-growing economy, outpacing the economies of Indonesia (5.01%), Vietnam (5.0%) and Malaysia (3.8%). The region's GDP growth rate is expected to reach 4.3% (ADB) in 2023, surpassing the global average of 3.0% (IMF).
Held annually since 2016, AIBP Innovation Survey annually captures the pulse of ASEAN enterprises, offering invaluable insights into digital transformation, innovation strategies, and the hurdles businesses face in this journey.
ASEAN's Journey Towards Sustainable AI and Digital Safety
The 23/24 AIBP Innovation Survey reveals a marked increase in ASEAN enterprises' investment intentions toward Artificial Intelligence (AI) and Machine Learning (ML), increasing from 34% in 2020 to 76% in 2023. Concurrently, there has been a 13% growth in big data analytics investments, rising from 65% in 2020 to 78% in 2023, indicating a robust trend towards adopting advanced data analysis and AI-driven technologies.
Yet, talent scarcity and cybersecurity emerge as critical challenges, impeding full-scale innovation implementation. 40% of the surveyed enterprises identified a lack of talent and expertise as a major challenge in executing their innovation vision. At the same time, 32% of companies view cybersecurity as a stumbling block to their digital progress. The financial implications of cyber attacks, particularly in the financial sector, underscore the urgency of these challenges.
Extract from 2023/24 AIBP ASEAN Enterprise Innovation Market Overview Report
Tina Alvarez , CIO, JG Summit Holdings Inc., shares her firsthand experience in addressing these issues through strategic outsourcing and AI-enhanced cybersecurity measures, reflecting the proactive steps businesses are taking to navigate these complex landscapes.
“Four years ago, we had a huge attrition in our cybersecurity team. We were faced with, “how do we now support our operations and continue to protect our assets?” The cybersecurity attacks are increasing.. And our incidents were piling up… We had to do something and expand our outsourcing to actually cover (cyberattack) investigations.. We chose a partner who uses their AI technology to help us in the threat hunting, conduct analyses and analyse our vulnerabilities.”
Tina Alvarez, Chief Information Officer, JG Summit
The findings of the 2023/24 AIBP ASEAN Enterprise Innovation Market Overview resonate with the critical discussions held at the 4th ASEAN Digital Ministers’ meeting. A key focus of the meeting was to establish governance standards for emerging technologies, particularly AI, enhancing digital infrastructure collaboration, and promoting trust in digital data use and sharing.
By endorsing the ASEAN Guide on Artificial Intelligence Governance and Ethics and approving the ASEAN Regional CERT Financial Model, the ministers echoed the survey's insights, further validating the urgent need for responsible AI use and strengthened cybersecurity measures across the region. This alignment underscores the relevance and timeliness of the survey's findings.
Sustainable Transformation in ASEAN
The survey also spotlights a growing commitment to ESG-aligned innovations, reflecting a broader business paradigm shift towards sustainability, as ASEAN enterprises prioritise resource efficiency and data-driven ESG risk management. Findings showed that in the next 1 to 2 years enterprises anticipate that their innovation strategies will focus more on ESG-aligned innovations and sustainable solutions. Moreover, 45% have already begun using ESG indicators to measure success of their innovation initiatives which reflects on a broader shift in the business mindset where success is not only measured by financial metrics but also evaluated based on sustainable impact. The urgency of such transformation is underscored by the recognition that current growth models depend on the overconsumption of limited resources.
In addition, improving resource efficiency and reducing waste as well as supporting data driven decision making for ESG risk management are the two ESG aspects that have the highest potential to benefit from technology and innovation.
Discover the trends shaping ASEAN's future in the AIBP ASEAN Enterprise Innovation 2023/24 Market Overview. Dive into how economic growth, technological innovation, and sustainable development are interlinked within the region. Download a copy of your report today.
Interested in the Philippines and Indonesia markets? Read more insights from our recent discussion.
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