The growth and development of artificial intelligence is not just a technological advancement; it is also impacting on the growth of other sectors in Southeast Asia. New research has shown that AI adoption is boosting cross-border trade by directly reducing costs and increasing the efficiency of small and large businesses. With well-developed digital policies and significant investment, the region is slowly beginning to reap the benefits of this transformation.
AI drives trade integration and redefines flows between Southeast Asian countries
The rapid advancement of AI is gradually changing the way countries in the region trade with each other. In 2024, more than US$30 billion was invested in AI-focused infrastructure, including the development of data centers, automation platforms, and trade analytics systems. Major companies in the sector, such as Google and Microsoft, have announced billion-dollar investments in countries like Malaysia and Indonesia.
The range of investments made, in addition to modernizing infrastructure focused on digital technology, also enables customs and logistics systems to operate much more efficiently. AI is already being used for actions that optimize processes, such as forecasting demand, improving routes, and reducing goods clearance times. The result is faster, more efficient, and more competitive trade.
According to estimates from ASEAN (Association of Southeast Asian Nations), this pace of development could increase regional GDP by 10% to 18% by 2030, equivalent to up to US$1 trillion in additional revenue for the economy. Much of this gain will come from the digitalization of trade and optimal integration between neighboring markets.
Companies adopt AI to address challenges and expand access to the regional market
Despite the level of encouragement and optimism surrounding the application, the pace of adoption among companies is still quite uneven. Research shows that 68% of online businesses in Southeast Asia recognize the value of AI, but despite this recognition, only 47% have implemented solutions in their daily operations. However, among those that have advanced to the point of including actions in their daily operations, the benefits are numerous: personalized offers, automated inventory management, and reduced errors in international transactions.
AI adoption empowers smaller firms and drives fairer competition
For small and medium-sized businesses, the expansion of cloud usage and accessible tools is helping their businesses grow. The 20% annual growth in the adoption of cloud computing services, which is comparatively higher than in Europe and North America, shows that digitalization is gradually becoming more widespread. This means smaller companies can now compete with large exporters, leveraging intelligent systems to plan routes and serve customers more accurately.
This movement isn’t limited to the private sector; governments are also getting involved. The ASEAN Digital Economy Agreement, set to come into force soon, aims to improve cross-border data rules and ensure that platforms operate seamlessly and clearly across member countries.
Infrastructure, polices, and trust: three pillars to support AI advancement
For the adoption of AI in international trade to become increasingly efficient, enabling these relationships to occur in increasingly optimized ways, it depends not only on technology but also on reliable infrastructure, coordinated and clear policies, and, above all, trust. Research such as that from the McKinsey Global Institute indicated that companies that proactively adopt artificial intelligence generate up to US$900 billion more in value than those that are slow to act.
It’s undeniable that AI advancements are transforming cross-border trade in Southeast Asia into an increasingly dynamic and connected force in a global race for technology development. With robust investment, coordinated polices, and increased digital access, the region has the potential to become a global example of technology-driven economic integration. The question now is no longer whether AI will change trade — but to what extent this change will redefine Southeast Asia’s role on the global stage.