AI and the Digital Economy Framework Agreement: Preparing ASEAN for the Next Tech Wave

Artificial intelligence is advancing rapidly worldwide, transforming industries and reshaping economies. By boosting productivity, optimizing processes, and enabling the creation of innovative products and services, AI is driving economic growth and holds the promise of significantly improving societal outcomes.

In this era of technological evolution, the Digital Economy Framework Agreement (DEFA) of the Association of Southeast Asian Nations (ASEAN) emerges as a critical initiative to strengthen and integrate the region’s digital economies. DEFA fosters collaboration and innovation, positioning ASEAN to harness AI’s potential, prepare for the next technological wave, and maintain global competitiveness.

As a strategic initiative, DEFA seeks to accelerate digital transformation across Southeast Asia. It provides a unified framework to embed digital technologies into various sectors, enhancing connectivity and fostering a secure, inclusive digital environment. The framework emphasizes harmonizing digital policies and regulations among member states, reducing barriers to digital trade, attracting investment in digital infrastructure, and developing the digital skills of the region’s workforce. By doing so, DEFA aims to double ASEAN’s digital economy to an estimated US$2 trillion by 2030. With member states at varying stages of AI policy development, DEFA is poised to unify and guide the creation of a cohesive regional AI regulatory framework.

DEFA is instrumental in accelerating AI adoption within ASEAN. By promoting robust digital infrastructure and harmonized regulations, it creates an environment conducive to investment and innovation. Standardized technical protocols for interoperability and unified data protection regulations streamline cross-border data flows, lowering barriers to AI deployment. DEFA also prioritizes common policies and ethical guidelines for AI development, balancing innovation with privacy and security. Additionally, it fosters innovation by supporting research, start-ups, and talent development—key elements of a thriving AI ecosystem. Through regional collaboration and knowledge sharing, ASEAN can collectively address challenges and expedite AI integration across member states.

As ASEAN moves toward embracing AI and implementing DEFA, the region must address various challenges to unlock AI’s full potential and achieve the framework’s ambitious goals…

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