Opinion
Go Deeper: Asia’s AI Revolution – A Journey of Growth, Challenges, and Promise
The global surge in Artificial Intelligence (AI) has transformed societies around the world. Asia, with its diverse cultural landscape and cutting-edge technology, is at the forefront of this revolution. This deep dive article delves into the dynamic AI ecosystem across various Asian countries, revealing how they are shaping the future of this technology.
TL;DR:
- AI development in Asia has seen spending in reach $49.2 billion by 2026, with a CAGR of 24.5%
- China, Japan, India, South Korea, and Singapore leading AI development in various sectors
- Ethical AI development and regulation are key focus areas for Asian countries
Introduction: Asian AI Ecosystem
The global surge in Artificial Intelligence (AI) has transformed societies around the world. Asia, with its diverse cultural landscape and cutting-edge technology, is at the forefront of this revolution. This deep dive article delves into the dynamic AI ecosystem across various Asian countries, revealing how they are shaping the future of this technology.
Asian AI Investments
The AI landscape in Asia is as diverse as the continent itself. Leading countries like China and Japan are driving innovation with significant investments and advancements. Meanwhile, emerging markets like India and Southeast Asian nations are rapidly catching up. This diversity is further influenced by government policies, with some countries adopting AI more aggressively than others.
Traffic to ChatGPT in May 2023 (1):
Investment across Asia is staggering as governments and companies all try to maximise the abundant opportunities, riches and efficiencies (savings!) which AI offers:
- IDC reports highlight the rapid growth and diverse application of AI technologies in the Asia/Pacific region, emphasising its role as an AI innovation and investment hub.
- AI spending in the Asia/Pacific region is projected to reach $49.2 billion by 2026, growing at a CAGR of 24.5%.
- Key sectors leading in AI adoption include professional services, banking, and discrete manufacturing.
- Generative AI (GenAI) is gaining traction, with 26% of Digital Native Businesses in the Asia/Pacific region already invested.
The Impact of AI
AI is expected to have the largest impact in areas like product development/design, customer engagement, and sales and marketing. The top use cases for GenAI include code generation and knowledge management applications.
Future Projections for AI Spending
Looking ahead, the AI spending in the Asia/Pacific region is forecasted to surge to $78.4 billion by 2027, with a CAGR of 25.5% from 2022 to 2027. This increase is attributed to the shift towards leveraging cutting-edge technology to reimagine operations, enhance customer experiences, and maintain a competitive edge in a rapidly changing market. China continues to be a leader in AI adoption in the region, accounting for a significant portion of the total AI spending.
Country-Specific AI Developments
China:
China’s government has made AI a national priority, resulting in remarkable growth. Chinese tech giants like Alibaba and Tencent are driving AI research, focusing on areas from e-commerce to autonomous vehicles. Including:
- Government-backed initiative: China’s government has made AI a national priority, leading to remarkable growth. This initiative reflects a global urgency to create a strong legal framework for AI.
- Tech giants: Chinese tech giants like Alibaba and Tencent are driving AI research, focusing on areas like e-commerce and autonomous vehicles.
- Regulation: China is actively working on AI regulation, with plans to draw up new laws in 2023. For detailed insights, refer to the South China Morning Post’s article on China’s AI regulation plans. (2)
- AI in Various Sectors: A report by McKinsey & Company provides an in-depth look at the future of AI in China, covering areas such as enterprise software, healthcare, and life sciences. It also discusses China’s “14th Five-Year Plan” and its focus on AI in innovation McKinsey & Company. (3)
Japan:
With a rich history in robotics and technology, Japan views AI as a means to address societal challenges like ageing demographics. The country excels in utilising AI in automotive and manufacturing sectors. Examples of Japan embracing AI include:
- Generative AI in Japanese Firms: Major Japanese companies like SoftBank and Hitachi are actively developing and incorporating generative AI technologies into their businesses. SoftBank’s mobile unit, for instance, is working on developing a Japanese equivalent of ChatGPT, a move that highlights Japan’s efforts to catch up in the rapidly evolving field of generative AI. (4)
- Integration of AI in Robotics: Japanese companies are renowned for their ability to integrate various disciplines into a single technology, as demonstrated by SoftBank Robotics. They are working on integrating the “brain” of AI into the “body” of robots for various industrial and consumer applications. This includes efforts to robotize certain sectors, such as janitorial services, in response to Japan’s ageing workforce. (5)
- Smart Cities and AI Projects: The development of Smart Cities is a major initiative in Japan’s AI market. One notable project is Toyota’s Woven City, to be constructed at the base of Mt. Fuji. This “living laboratory” will test and develop technologies like autonomy, robotics, personal mobility, and smart homes. It aims to be a sustainable city powered by hydrogen fuel cells and designed for self-driving vehicles.
- AI-Powered Robots During Covid-19: The pandemic accelerated the adoption of AI in Japan, especially in areas like healthcare, where teleconsulting and virtual consultations became more prevalent. Robots produced by companies like SoftBank Robotics have been implemented to reduce human contact in various sectors, such as restaurants and healthcare, providing services that range from waiting to health monitoring. (6)
India:
India’s vibrant startup scene is a hotbed for AI innovation, particularly in healthcare and social sectors. The government’s push towards digitalization has further fueled AI development:
- AI’s Impact on the Job Market: Goldman Sachs has noted the potential for AI to automate up to 300 million jobs globally in the near to medium term, which includes jobs in India’s vital services industry. This brings into focus the need for reskilling and identifying future job opportunities. The Indian government think tank, Niti Aayog, emphasises India’s unique approach to AI, where the focus is on addressing uniquely Indian challenges. This approach, known as #AIforAll, aims to integrate AI into the broader concept of technology for public benefit. It includes layers such as Aadhaar, UPI, data governance, and health as part of IndiaStack, which the government has been investing in for over a decade.
- Reskilling and Upskilling Initiatives: The transition towards AI in India raises questions about the adequacy of reskilling efforts to compensate for job losses. For example, there are around nine million individuals in India engaged in low-skilled services and BPO roles, and with the advent of AI, many of these jobs are at risk. Initiatives like FutureSkills PRIME, launched by the Ministry of Electronics and IT (MeitY) and NASSCOM, aim to reskill and upskill 1.4 million employees over five years. However, the magnitude of transformation required is vast, and these efforts represent only a fraction of the scale needed.
- Policy Development and AI Strategy: Indian AI policy is evolving to keep pace with rapid technological changes. Much of the government-level work on AI has been based on Niti Aayog’s discussion paper and subsequent strategy documents. However, there is a need for formalisation and adaptation to ensure that AI policy remains relevant and effective in a rapidly changing technological landscape. (7)
South Korea:
Known for its investment in education and research, South Korea is leveraging AI in various fields, including entertainment (like AI-powered K-pop music production) and advanced manufacturing:
- Collaboration Between Major Companies and Academia: Major companies like Samsung and SK Hynix are increasingly collaborating with academia and research communities to advance AI technologies. Samsung Science & Technology Foundation has provided grants worth $40.12 million to various research projects, while SK Hynix has launched the “Semiconductor Academy,” offering lectures on a range of topics related to semiconductors.
- Fabless Startups and AI Hardware Accelerators: South Korea has witnessed the rise of fabless startups focusing on AI hardware accelerators. Companies like FuriosaAI, Rebellions, Sapeon, HyperAccel, OpenEdge, Mobilint, DeepX, and Telechips are developing AI accelerators for various applications, ranging from high-performance vision tasks in datacenters to solutions for edge devices and autonomous vehicles. For example, FuriosaAI’s Warboy prototype demonstrated significant performance gains over comparable GPUs, while Rebellions developed an AI accelerator for high-frequency trading. (8)
- Government Investment in AI Ecosystem: The South Korean government plans to invest 826.2 billion won ($632 million) by 2030 to develop a comprehensive AI ecosystem, focusing on indigenous high-end AI chips. This includes the K-Cloud Project, which aims to develop a neural processing unit (NPU) for AI data centres by 2025, enhancing data processing efficiency and speed compared to traditional CPUs and GPUs. (9)
- National Strategy for Artificial Intelligence: South Korea’s Ministry of Science and Information and Communications Technology is prioritising collaboration with private entities and academia to design and implement its National Strategy for Artificial Intelligence. This strategy focuses on developing AI applications that deliver explainable outcomes and decisions, combining AI with applied learning, and ensuring ethical AI development. Furthermore, the government has launched intensive training programs in AI for youth and government officials and incorporated basic AI education programs in public schools. (10)
Southeast Asia:
Countries like Singapore, Malaysia, and Thailand are emerging as significant players in the AI field. Their focus is on leveraging AI for local industry needs, from smart city solutions in Singapore to agricultural tech in Thailand:
- AI development is being approached with a focus on three key areas: enhancing AI capabilities for economic growth, improving AI-related skills and competencies, and establishing ethical and governance frameworks for AI applications.
- ASEAN is working on formulating an AI guide that emphasises these areas, with an expected release in early 2024. This guide will concentrate on ‘best practices by design’ rather than creating legally binding regulations.
- The initiatives in ASEAN countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, showcase a regional appetite for digital services, which may increase risks in an unregulated AI space.
- This indicates a growing reliance on AI applications across various sectors in the region, but without a legally binding piece of legislation, similar to the EU’s AI Act. (11)
Singapore:
Singapore is rapidly solidifying its position as a global leader in Artificial Intelligence (AI) development. Singapore is forging ahead on multiple fronts, focusing on key areas that will drive innovation and responsible AI practices.
- Large Language Models (LLMs): S$70 million flagship initiative to develop Southeast Asia’s first LLM ecosystem; SEA-LION model designed for cost-conscious businesses
- Accelerated AI Adoption: AI Trailblazers Initiative with Google Cloud to fuel AI adoption across public and private sectors; a focus on building a sustainable AI talent pipeline and nurturing home-grown startups (11)
- Shaping AI Governance: AI Verify Foundation established in Singapore, development of international AI standards and testing tools, tackling critical issues in generative AI and AI governance (12)
- Global AI Innovation Hub: Infineon Technologies invested S$27 million to make Singapore its global AI hub with AI integration across entire business and manufacturing operations and comprehensive employee training and collaboration with ecosystem partners (13)
- Responsible AI Development: Generative AI Evaluation Sandbox provides standardised assessment and monitoring with a commitment to responsible and trusted use of AI for a safer and more ethical future
- Investing in AI Talent: a national AI Strategy aims to triple the number of AI practitioners to 15,000, revamping the AI apprenticeship programme and expanding company attachments. (14)
Malaysia:
Malaysia has been actively developing its AI capabilities and infrastructure, with several significant developments in recent years:
- Partnership with Nvidia: $4.3 billion investment in AI infrastructure, boosting Malaysia’s AI ecosystem and semiconductor manufacturing ambitions. First phase operational by mid-2024. (15)
- MOSTI Initiatives: National AI Roadmap launched to build a sustainable AI innovation ecosystem by 2025. Policy and Regulation Committee established to review existing laws and develop AI development standards. (16)
- AI Across Various Industries: Healthcare – AI enhances diagnostic accuracy and patient care through AI-powered medical imaging systems; Finance – AI detects fraud, assesses risk, and provides customer service via AI-driven chatbots; Agriculture – AI optimises crop yields and manages resources; Education – AI personalised learning experiences for students. (17)
- AI Roadmap (AIRmap): Aims to boost productivity by 30% across all sectors by 2030. AIRmap creates an AI innovation ecosystem, addressing national challenges and spurring growth through AI applications. (18)
- AI Potential in Specific Industries: Significant potential in accounting, legal, and healthcare. In accounting, AI automates tasks and enhances data analysis. In legal, AI assists with research and document drafting. In healthcare, AI improves diagnostics and patient care management. (19)
Thailand:
Thailand is actively developing its artificial intelligence (AI) capabilities with a focus on enhancing the economy and improving quality of life. The country’s National AI Strategy and Action Plan, set to run through 2027, is a cornerstone of this development. It encompasses multiple objectives, including developing human and technological capacity, creating economic growth, and generating positive social and environmental impact. The strategy targets various sectors in two phases: from 2022-23 and from 2024-27.
- Social, Ethical, and Legal Framework: Develop AI ethics policies and standards, raise awareness through education programs, reach 600,000 citizens by 2027.
- Infrastructure Development: Improve compute capacity with HPC, build national AI expert network, establish national AI services platform, increase digital infrastructure spending by 10% annually.
- Education: Enhance AI-related university programs, educate the general public, generate over 30,000 AI talents in six years.
- AI Application and Technology Development: Develop 100 R&D prototypes in six years, create businesses with social impact, generate 48 billion Baht by 2027.
- AI in Governance: Make government services more transparent and accessible.
- Nectec’s Role: Facilitate AI development, connect AI technology with public sector, provide tools for Thai AI developers.
- AI Governance Guidelines: Manage risks and supervise AI-related operations, ensure ethical and responsible use of AI.
AI in Asia is A Fusion of Technology and Heritage:
Asia’s AI landscape is shaped by a unique interplay of cultural values and technological ambition. While aware of potential biases and regulatory hurdles, Asian nations are actively building frameworks for ethical AI development, fostering collaboration, and harnessing AI’s potential for economic growth.
Navigating the Regulatory Maze:
Rapid technological advancements and geopolitical considerations complicate AI regulation in Asia. Observing major powers like the US and China take dominant positions, smaller economies advocate for new international rules ensuring equitable access and data flow. Singapore leads the way, promoting regional cooperation and bridging the digital divide.
Striking the Ethical Balance:
Balancing public safety with privacy and civil liberties is key in Southeast Asia. Recognizing the risk of discriminatory outcomes due to biased data, ASEAN nations are developing a regional framework for ethical AI that respects cultural differences and promotes knowledge sharing.
A Tailored Approach to Governance:
ASEAN’s unique guide to AI ethics and governance prioritises flexibility and cultural nuances. Voluntary and business-friendly, it encourages innovation through R&D funding, contrasting with the stricter EU approach. This reflects the diverse regulatory environments of Southeast Asian countries.
A Promising Future for AI Development in Asia
Asia’s journey in AI, despite challenges, holds immense promise. By integrating AI with its rich cultural heritage, the region is poised to be a global leader in AI-driven innovation and economic prosperity. This journey offers valuable insights into the responsible integration of AI into the fabric of human society.
Comment and Share:
How can Asian countries maintain their unique cultural identities and ethical values while embracing the rapid advancements and global integration of AI technology, and what lessons can the rest of the world learn from their approach? Let uss know in teh comments below, and don’t forget to subscribe.
Further Resources for AI Development in Asia
For readers interested in delving deeper, a variety of resources are available, including industry reports, academic papers, and insights from AI conferences focused on Asian developments. Below is a list of reference sources to get you started.
- https://www.idc.com/getdoc.jsp?containerId=prAP50532523
- https://www.scmp.com/tech/policy/article/3223429/china-draw-ai-regulation-2023-beijing-races-against-eu-us-roll-out-new-laws-covering-technology
- https://www.mckinsey.com/
- https://www.japantimes.co.jp/news/2023/05/19/business/japan-generative-ai-initiatives/
- https://www.aei.org/technology-and-innovation/japanese-ai-advances-offer-lessons-for-the-rest-of-the-world/
- https://tokyoesque.com/ai-market-in-japan/
- https://www.inventiva.co.in/stories/indias-ambitions-to-become-the-world-leader-in-ai-a-case-study-of-artificial-intelligence-with-indias-growing-population/
- https://cacm.acm.org/magazines/2023/7/274057-south-koreas-nationwide-effort-for-ai-semiconductor-industry/fulltext
- https://koreajoongangdaily.joins.com/2023/06/26/business/industry/KCloud-Project-cloud-semiconductor/20230626153808109.html
- https://ibtekr.org/en/cases/how-south-korea-has-developed-a-world-leading-ai-ecosystem/
- https://www.iseas.edu.sg/articles-commentaries/iseas-perspective/2023-65-aseans-new-dilemma-managing-the-artificial-intelligence-by-kristina-fong-siew-leng/
- https://www.imda.gov.sg/resources/press-releases-factsheets-and-speeches/press-releases/2023/singapore-launches-ai-verify-foundation-to-shape-the-future-of-international-ai-standards-through-collaboration
- https://www.edb.gov.sg/en/about-edb/media-releases-publications/infineon-to-make-singapore-its-global-ai-innovation-hub-by-2023.html
- https://www.channelnewsasia.com/singapore/national-ai-strategy-artificial-intelligence-talent-iconic-site-3963971
- https://www.reuters.com/technology/nvidia-talks-with-malaysias-ytl-data-center-deal-sources-2023-12-08/
- https://practiceguides.chambers.com/practice-guides/artificial-intelligence-2023/malaysia
- https://www.businesstoday.com.my/2023/09/23/the-growing-impact-of-ai-in-malaysia/
- https://news.microsoft.com/en-my/2021/08/30/how-malaysia-can-navigate-its-future-economy-with-ai/
- https://backspace.com.my/blog/artificial-intelligence/the-future-of-ai-in-malaysia/
- https://www.opengovasia.com/articles/thailands-ai-governance-transformation
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Marketing
Adrian’s Arena: Reaching Today’s Consumers – How AI Enhances Digital Marketing
AI Digital Marketing is revolutionising consumer engagement across Asia, enhancing personalisation and customer service.
TL;DR:
- AI is transforming digital marketing in Southeast Asia, personalising experiences across multiple platforms.
- AI-powered chatbots enhance customer service, are available 24/7, and handle queries in multiple languages.
- Programmatic advertising powered by AI optimises ad placement without cookies or personal data, ensuring privacy.
AI Infused Marketing: Engaging Consumers Across Digital Worlds
Artificial Intelligence (AI) is rapidly transforming digital marketing in Southeast Asia. It’s no longer just about reaching people on their phones—now it’s about connecting with them wherever they are, whether it’s on YouTube, connected TVs, websites, or even while they’re playing a game.
Customer Insights and Personalisation
Have you ever noticed how some brands seem to know exactly what you want, almost like they’re reading your mind? That’s AI.
In a region as diverse as Southeast Asia, AI helps brands like Shopee and Lazada figure out what you’re into and serve up the perfect recommendations.
Whether you’re getting a product suggestion on their app or seeing a relevant ad while streaming on YouTube, AI is behind the scenes making sure it all feels tailored just for you.
Chatbots and Customer Service
We’ve all been there—needing help at odd hours or just not wanting to deal with a long wait time. That’s where AI-powered chatbots come in.
These little helpers are available 24/7 and can handle queries in multiple languages. Lazada, for example, uses chatbots to assist shoppers with everything from order tracking to product recommendations.
Whether you’re browsing late at night on your phone or checking something on your laptop, you can get quick, accurate answers without waiting from AI Chatbots.
Content Creation and Curation
Creating content that speaks to millions of people across Southeast Asia? AI has got that covered. It doesn’t just create content—it curates it, serving up what’s relevant for each user.
Zalora, for example, uses AI to recommend outfits based on your browsing history. This means that whether you’re on their app or website or even seeing their content on a connected TV, it feels like it was made just for you.
Programmatic Advertising
Ever felt like an ad was following you around the internet? That’s AI doing its job. Programmatic advertising powered by AI is all about putting the right message in front of the right person, at just the right time.
SQREEM is a big player in this space, helping brands in Southeast Asia optimise their ads across digital platforms—from YouTube and gaming apps to connected TVs.
And the best part? They do it all without cookies or personal data, making it privacy-friendly.
SEO and Voice Search Optimisation
With voice search on the rise, especially in places like Indonesia and Thailand, AI helps brands stay on top of how people are searching. Instead of typing out searches, people are now talking to their devices:
“Hey Google, where’s the best coffee shop near me?”
AI ensures that content is optimised for these conversational searches, so brands can be found easily across platforms—from websites to voice-activated assistants.
Email Marketing Automation
Think about the emails you get from your favourite brands—AI likely had a hand in making sure they arrived at just the right moment.
AI-powered tools like ActiveCampaign analyse when people are most likely to open emails and what they’re interested in. So, whether you’re checking your inbox on your phone, tablet, or laptop, AI makes sure the content is personalised and relevant.
Enhanced Data Analytics
In Southeast Asia’s fast-moving markets, staying on top of consumer trends is essential. AI-powered data analytics tools give brands like AirAsia real-time insights, helping them adjust their strategies on the fly.
Whether it’s for social media, connected TV, or in-app ads, AI helps brands react to changing behaviours and fine-tune their marketing efforts quickly.
Social Media Monitoring and Influencer Marketing
Southeast Asia loves social media, and AI is there to help brands track what’s happening in real-time. Platforms like Sprinklr use AI to monitor conversations, helping brands understand what people are saying and when.
AI also helps identify the perfect influencers to partner with—especially micro-influencers who can authentically connect with niche audiences in different countries.
Now, you might not even realise some influencers are entirely AI!
Image and Video Recognition
Visual content is a big deal, and AI helps brands figure out what kind of images and videos work best. Whether it’s tweaking a YouTube ad or adjusting visuals for connected TV, AI can analyse what gets the most engagement and optimise future campaigns.
Brands like Grab are already using AI to make their ads more appealing across platforms like connected TV and mobile.
Predicting Trends and Consumer Behaviour
Wouldn’t it be great to know what your customers want before they even ask? AI does just that.
By analysing data from apps, websites, and even connected TVs, brands like Shopee are using AI to predict shopping habits and adjust their marketing strategies. It’s all about staying ahead of the competition and giving customers exactly what they’re looking for.
Case Study: Shopee’s AI Success
Shopee is nailing AI integration. From personalised recommendations to optimised ad placements, they’ve made the shopping experience seamless across platforms. Whether you’re browsing on the app, desktop, or watching a connected TV ad, Shopee’s AI ensures the experience is smooth and relevant.
Data Privacy Concerns
As AI continues to grow, so does the importance of data privacy, especially in Southeast Asia where regulations like Singapore’s PDPA are strict.
Unlike many platforms, SQREEM takes a unique approach by not using cookies or any personal data. This allows them to help deliver effective, personalised ads while respecting users’ privacy through AI driven behavioural insights.
The Future of AI in Southeast Asia’s Digital Marketing
Looking ahead, AI will continue to revolutionise digital marketing in Southeast Asia. With innovations like virtual influencers and smarter machine learning, brands will be able to connect with consumers across all digital touch points—from gaming to connected TV—with even more precision and personalisation.
Marketers who embrace AI now will be the ones leading the pack.
Comment and Share:
How do you think the rise of AI in digital marketing will change the way brands interact with consumers in the next five years? Will we see a future where every ad and piece of content is perfectly tailored to our individual preferences, or is there a risk that personalisation could become too invasive?
Share your thoughts in the comments below as we hone our learning skills together, and don’t forget to subscribe for updates on AI and AGI developments.
You may also like:
- 7 Ways Marketers in Asia Can Leverage Generative AI to Win Big
- Revolutionising Marketing: The Impact of AI in Asia’s Business Landscape
- Or find out more about Adrian Watkins by tapping here.
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Marketing
Adrian’s Arena: The AI-Driven Playbook for Winning Over APAC Consumers
AI is reshaping customer experience (CX) across APAC, empowering brands to create personalised, culturally relevant, and secure interactions that resonate deeply with diverse audiences.
AI is reshaping customer experience (CX) across APAC, empowering brands to create personalised, culturally relevant, and secure interactions that resonate deeply with diverse audiences. AI customer experience in APAC is a game changer in the industry.
TL;DR
- AI is transforming CX in APAC by enabling brands to deliver experiences that feel both personalised and culturally relevant, boosting engagement and building trust.
- Personalisation: Brands that understand local tastes and customise experiences to meet those expectations consistently see greater engagement and loyalty.
- Multilingual Chatbots: AI-powered chatbots remove language barriers, enhancing customer satisfaction and retention
- Gen Z-Focused Campaigns: TotallyAwesome’s AI-driven ads connect with Gen Z on privacy and authenticity, improving engagement by up to 35%
- Visual Search & Dynamic Pricing: Rakuten’s visual search boosts transactions by 5%, and AI-driven pricing aligns offers with local events
- Enhanced Security: AI-driven fraud detection ensures secure transactions, building trust in mobile-first APAC markets
How AI is Transforming CX Across APAC
If one thing’s become crystal clear in running a successful business today, it’s this: customer experience (CX) isn’t just a box to tick—it’s the heartbeat of any brand. In the AI customer experience APAC industry, this is more relevant than ever.
In APAC, with its cultural variety and many languages, people expect brands to genuinely get them, speak their language, and offer real value. So, for business leaders, marketers, and media strategists here, the question isn’t if AI should play a role in CX—it’s how to make it resonate with audiences.
Here’s a look at how AI is shaping CX across the region—and where it’s heading.
Personalisation That Hits Home
Brands that understand local tastes and customise experiences to meet those expectations consistently see greater engagement and loyalty. According to Accenture, personalised experiences can increase customer satisfaction by up to 30%, particularly in markets with a high emphasis on relevance, such as Japan, South Korea, and Singapore, proving the potential of AI in customer experience APAC.
Example – APAC Ecommerce Personalisation: AI-powered recommendations based on browsing history, demographics, and past purchases have significantly increased customer satisfaction. Studies report up to a 30% boost in satisfaction and loyalty among users who experience tailored shopping journeys, particularly in mobile-driven markets like Japan and Singapore.
Chatting in Their Language
With APAC’s linguistic diversity, AI-powered chatbots have become vital for connecting with customers. Conversational AI in the telecom and e-commerce sectors offers 24/7 multilingual support, removing language barriers and enhancing satisfaction. Research shows that native language support reduces churn by up to 15% in markets where language accessibility is critical, which emphasises the importance of AI customer experience in APAC.
Culturally Tuned Campaigns for Gen Z
Gen Z is big on authenticity, privacy, and relevance, and AI helps brands deliver on these fronts. TotallyAwesome’s advertising platform connects with younger audiences in APAC by delivering culturally tuned, privacy-compliant campaigns that resonate with Gen Z values.
Visual Search That Feels Like Magic
Visual search is transforming the shopping experience, especially in APAC’s mobile-first markets. Rakuten’s AI-powered visual search feature on Rakuten Fashion allows customers to upload images and find similar products instantly, resulting in a 5% boost in search-related transactions. This intuitive shopping tool is redefining convenience and aligning with APAC consumers’ visual engagement preferences.
Dynamic Pricing That Feels Right
Effective localisation in APAC goes beyond language—it’s about aligning pricing with cultural events and real-time demand.
Real-Time Sentiment Monitoring
AI’s sentiment analysis tools help brands gauge customer emotions as they happen, enabling campaign optimisation in real time. Data-driven responsiveness ensures each interaction feels meaningful and aligned with audience sentiment.
Example – Adobe Sensei: Adobe’s AI platform analyses customer sentiment across social media, reviews, and surveys. By identifying sentiment trends, Adobe uses these insights to tailor marketing efforts and improve customer satisfaction, creating more personalised experiences in digital interactions.
Hyperlocal Content That Hits Home
Hyperlocal content, powered by AI, strengthens connections by aligning with regional preferences. For instance, streaming platforms in APAC use AI to recommend culturally popular content like K-dramas in Southeast Asia or anime in Japan.
Securing Digital Payments
With the rise of mobile payments in APAC, AI-driven fraud detection has become essential for secure transactions. Digital wallet providers in the region are using AI to flag suspicious activity, boosting user confidence in the safety of their transactions. This security, powered by AI, reduces fraud risks and retains customers by providing a reliable payment experience
Example – HSBC’s AI Fraud Detection: HSBC applies AI-based security measures to analyse customer transaction patterns, flagging suspicious transactions in real time. This approach has helped reduce fraud across APAC, as the bank leverages AI to monitor for anomalies in transactions and proactively secure customer accounts. By monitoring trends and identifying outliers, HSBC’s system protects against fraudulent activity, ensuring a secure experience for mobile-first APAC customers.
Looking Ahead: The Future of AI in CX
AI isn’t just enhancing CX in APAC—it’s reshaping it. From hyper-personalisation to real-time sentiment monitoring, AI lets brands connect in ways that feel genuine and relevant. As AI continues to evolve, we can expect even more from trends like generative AI for hyper-personalisation and predictive analytics to anticipate customer needs faster, representing the future of AI customer experience APAC.
Comment and Share
What role do you see AI playing in your CX strategy? And what’s the biggest challenge for adopting these technologies in APAC? Share your thoughts below—I’d love to hear how others are embracing these changes. And don’t forget to subscribe for updates on AI and AGI developments.
You may also like:
- Adrian’s Arena: AI is Shaping the Future of Marketing to Gen Z in Southeast Asia
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- Adrian’s Arena: East Meets West – Contrasting AI Partnership Strategies for OpenAI
- Or find out more about Adrian Watkins by tapping here.
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Marketing
Adrian’s Arena: AI is Shaping the Future of Marketing to Gen Z in Southeast Asia
Gen Z is transforming marketing in Southeast Asia. Learn about their preferences for personalised experiences and values-driven consumerism.
TL;DR
- Gen Z is driving the evolution of marketing in Southeast Asia, with a preference for personalised, authentic experiences across platforms like gaming and social commerce.
- AI-powered platforms, such as SQREEM Technologies and TotallyAwesome, enable brands to engage Gen Z without relying on invasive tracking, using behavioural insights instead.
- Values-driven consumerism is key, with Gen Z seeking brands that align with their values, especially around sustainability, authenticity, and social responsibility.
- Rewarded video ads and personalised social commerce are effective tools for engaging Gen Z, allowing brands to connect in ways that add value without disrupting the user experience.
- Trust and privacy are paramount—Gen Z expects brands to be transparent about how they use AI, with a growing demand for experiences that respect privacy.
Gen Z: Redefining Mobile Marketing in Southeast Asia
There’s no denying it: Generation Z is reshaping how brands connect with consumers, especially on mobile.
In Southeast Asia, where mobile penetration continues to rise, Gen Z is driving a shift in how we approach advertising. Whether through mobile gaming, social commerce, or general mobile use, brands that understand this generation’s behaviour are well-positioned to capture their attention. And to do this effectively, AI has become a crucial tool.
In this article, we’ll explore this in more detail and explore how brands can leverage AI-powered platforms like SQREEM Technologies and digital contextual marketing solutions like TotallyAwesome to stay ahead in this competitive market – all the while keeping the Gen Z’s user privacy intact.
Understanding Gen Z in Southeast Asia
Gen Z, born between the mid-1990s and early 2010s, is the first generation to grow up fully immersed in technology. In Southeast Asia, where mobile penetration is above 76%, this generation is spending more time on mobile devices than ever before, whether gaming, streaming, or engaging with brands.
Short-form video is also a major trend with Gen Z, with platforms like TikTok leading the charge, as seen in the latest GWI data, which highlights a sharp rise in short-form video consumption, particularly for sports.
Singaporean Gen Zs: How AI and Digital Marketing Shape Their Experience
Singaporean Gen Zs stand out for their high engagement with digital platforms. Despite representing just 1% of Southeast Asia’s population, Singapore contributes 23% of Grab’s revenue, underscoring the strong digital engagement of its consumers.
Additionally, 69% of Asian Gen Zs feel uncertainty is detrimental to their mental health. As such, brands that create community, emphasise well-being, and promote authentic interactions will resonate more strongly with Gen Z.
How AI Can Help You Reach Gen Z Without Invasive Tracking
One of the most important things to highlight is that neither SQREEM Technologies nor TotallyAwesome relies on PII (personally identifiable information) or cookies to deliver personalised experiences. Both companies use AI to analyse behavioural signals that allow for deep personalisation without the need to collect sensitive data. This is crucial when marketing to Gen Z, a generation that values privacy and expects transparency from brands.
Gen Z’s preference for values-driven consumerism and their need for authenticity have made it necessary for brands to build relationships based on trust. AI allows companies to personalise their communication without sacrificing privacy or trust, maintaining alignment with Gen Z’s values.
1. AI-Driven Personalisation for Mobile Marketing
Gen Z expects brands to understand their preferences and deliver experiences tailored to them. AI is what enables that level of personalisation without relying on invasive tracking methods. Platforms like SQREEM Technologies analyse behavioural patterns and deliver ads that resonate—at exactly the right moment. This allows brands to connect with their audience without sacrificing trust or privacy.
2. Rewarded Video Ads: Adding Value Without Disruption
Let’s face it—Gen Z is savvy, and they’re not fans of ads that interrupt their experience. That’s why rewarded video ads have become a smart, non-intrusive way to engage this generation. AI helps predict the best moments to serve these ads, making sure they feel like a natural part of the mobile experience.
3. AI-Powered Social Commerce
Gen Z doesn’t just engage with content—they also shop directly within mobile apps. AI is revolutionising social commerce by predicting purchasing behaviour and creating personalised shopping experiences. With tools like those provided by TotallyAwesome, brands can offer products that align perfectly with Gen Z’s interests, right within the apps they already use.
Measuring Effectiveness: AI’s Real Power
1. Real-Time Data for Smarter Decisions
When it comes to measuring the success of campaigns, impressions and clicks only tell part of the story. AI provides deeper, real-time insights into how Gen Z interacts with your brand across different platforms. SQREEM Technologies tracks behaviours across mobile, social, and gaming environments, giving brands a holistic view of their impact.
2. Cross-Channel Integration
Gen Z is constantly shifting between platforms—from gaming apps to social media and back. AI helps brands track these interactions seamlessly across multiple touchpoints, ensuring consistent messaging and engagement.
AI-Driven Trends to Watch
1. Playable Ads and Interactive Experiences
AI is making interactive ads, like playable ads, even more engaging. These ads allow users to interact with a product or service in a game-like environment before downloading or purchasing it. For Gen Z, who craves control and interactivity, AI-driven playable ads offer a fun, non-intrusive way to explore new products.
2. Virtual Goods and NFTs
AI is also helping brands navigate the growing world of virtual goods and NFTs. By predicting which digital products will resonate most with Gen Z, AI is helping companies create exclusive virtual items that tap into their interests—whether in mobile games or social platforms.
The Future of AI and Gen Z: Building Authentic Connections
AI is transforming how we engage with Gen Z, especially when it comes to mobile marketing. Platforms like SQREEM Technologies and TotallyAwesome are using AI to deliver hyper-personalised, non-intrusive experiences—without relying on PII or cookies. This approach aligns perfectly with Gen Z’s expectations for privacy and personalisation.
As AI continues to evolve, so too will our ability to meet Gen Z exactly where they are—on their mobile devices, across games, social platforms, and beyond.
Comment and Share:
How will your brand adapt as AI reshapes Gen Z’s expectations for personalised, meaningful interactions—and do you feel you need AI to do this yet? Share your ideas and experiences with AI and AGI technologies in the comments below. And don’t forget to subscribe for updates on AI and AGI developments.
You may also like:
- Adrian’s Arena: How AI is Reshaping Industries and Shaping Our Future
- Adrian’s Arena: East Meets West – Contrasting AI Partnership Strategies for OpenAI
- AI and Asian Gen Z is A Slang-Filled Digital Dialogue
- Or find out more about Adrian Watkins by tapping here.
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