ASEAN’s AI moment: Why we must work together or risk falling behind

I recently had the opportunity to participate in the Digital and AI track of the latest ASEAN-Business Advisory Council (ASEAN-BAC) meetings together with my colleagues from the Global AI Council Philippines, where I currently serve as chair. Representatives from across Southeast Asia gathered to discuss one of the most important issues facing the region today: how the ASEAN can collectively navigate the rapid rise of artificial intelligence and the broader digital economy.

There is now broad recognition across the ASEAN that artificial intelligence will reshape industries, labor markets, education, governance, and even geopolitical influence over the next decade. At the same time, there is also a growing realization that no ASEAN country can fully maximize AI on its own. The opportunity is too large, the competition too intense, and the technological shifts too fast for fragmented approaches to succeed over the long term.

One of the most important topics discussed during the meetings was the Digital Economy Framework Agreement, more commonly known as DEFA. While it may still sound highly technical to many outside government and technology circles, DEFA could eventually become one of the most significant economic initiatives in the ASEAN’s modern history. It is the first regional digital economy framework agreement of its kind in the world, and it reflects the ASEAN’s attempt to move from broad digital ambitions toward a more coordinated regional strategy.

This matters because digital opportunities are often discussed in very general terms. Every country wants to become a digital hub. Every economy wants more startups, more innovation, and greater participation in digital trade. However, ambition without coordination often creates fragmentation. Countries end up building different standards, different regulations, and disconnected digital ecosystems that slow down growth instead of accelerating it. Rather than creating one strong regional digital economy, ASEAN risks creating 10 separate systems that struggle to work together.

The significance of DEFA lies in its effort to create alignment. Instead of each country pursuing entirely separate digital directions, the framework encourages the ASEAN to identify common priorities and shared opportunities. In the context of artificial intelligence, this becomes even more important because AI thrives on scale. It depends on large markets, large datasets, broad adoption, and deep talent pools. No single ASEAN country, not even the region’s largest economies, can individually match the scale of the United States or China. But collectively, the ASEAN represents more than 680 million people, one of the youngest populations globally, and one of the fastest growing digital economies in the world.

The region’s real strength therefore lies not in acting separately, but in acting together.

One of the more meaningful discussions during the ASEAN-BAC meetings centered around agriculture. Across Southeast Asia, millions of livelihoods still depend on farming and food production, yet many agricultural sectors continue to struggle with low productivity, climate risks, inefficient supply chains, and inconsistent market access. Artificial intelligence has the potential to significantly improve these conditions. Predictive analytics can help farmers improve crop planning, AI-driven weather forecasting can help communities prepare for climate disruptions, and smart systems can optimize irrigation, fertilizer use, and logistics management.

However, the challenges facing agriculture are increasingly regional rather than purely national. Climate disruptions do not stop at borders. Supply chain interruptions affect neighboring economies simultaneously. Food security itself is becoming an ASEAN concern, not just a domestic one. Sharing data, research, and AI-driven agricultural models across the ASEAN would create far greater impact than isolated national initiatives operating independently of one another.

The same point applies to micro, small and medium enterprises or MSMEs, which remain the backbone of the ASEAN economies, including the Philippines. Many MSMEs still struggle with digital adoption, access to financing, productivity tools, and regional market access. Artificial intelligence can help level the playing field by allowing smaller businesses to automate operations, improve customer engagement, forecast demand, and participate more effectively in digital commerce. Yet these benefits can only scale meaningfully if the ASEAN creates interoperable systems and aligned digital frameworks. If every country develops entirely different digital standards and compliance systems, smaller businesses will face even greater barriers when attempting to expand regionally.

This is why regional cooperation can no longer be viewed as optional.

The ASEAN has traditionally operated through consensus-building, and understandably so. Aligning 10 economies with different political systems, development levels, and national priorities is never easy. However, the pace of AI development globally means the ASEAN cannot afford to move too slowly. The uncomfortable reality is that artificial intelligence may become the defining economic divide of this generation. Countries and regions that adopt AI effectively will improve productivity, attract investments, strengthen competitiveness, and create higher-value industries. Those that hesitate risk becoming dependent on technologies, platforms, and systems developed elsewhere.

This shift is already happening globally. The United States and China continue investing heavily in AI infrastructure, semiconductor ecosystems, and talent development. Europe is accelerating efforts in AI governance and regulation. India is rapidly building digital public infrastructure integrating identity systems, payments, and data platforms at national scale. Against this backdrop, the ASEAN faces an important choice. The region can either move together with strategic clarity or continue operating in silos while the rest of the world advances at far greater speed.

I believe the private sector has a critical role to play in helping move this conversation forward. Governments will shape policies, but businesses will drive adoption. Industry groups, the academe, technology leaders, and enterprises across the ASEAN must work together to ensure that the region’s digital future becomes collaborative rather than fragmented. The Philippines itself is well positioned to contribute meaningfully to this effort because of our strengths in digital services, analytics, creativity, and human capital. However, we must think beyond national competitiveness alone. The larger opportunity lies in helping the ASEAN succeed collectively.

If the ASEAN works together on AI and digital transformation, the region can emerge as one of the world’s most dynamic and competitive economic blocs. If we continue approaching artificial intelligence country by country, we risk being left behind together.

The discussions during the ASEAN-BAC meetings reminded me that the opportunity before us is enormous, but so is the urgency. Artificial intelligence will reshape industries, economies, governance, and labor markets far faster than many organizations are prepared for. The question is whether the ASEAN will shape that future collectively or merely react to it individually.

This may very well be the ASEAN’s defining AI moment, and history rarely waits for regions that move too cautiously.

Dr. Donald Patrick Lim is the founding president of the Global AI Council Philippines and the Blockchain Council of the Philippines, and the founding chair of the Cybersecurity Council, whose mission is to advocate the right use of emerging technologies to propel business organizations forward. He is currently the president and COO of DITO CME Holdings Corp.