By Nguyen Hoang Minh Ngoc, TFGI Insights Contributor
It is undeniable that artificial intelligence (AI) brings numerous benefits to our society, particularly by driving development across diverse fields such as the economy, healthcare, and disaster prediction. However, significant risks remain associated with this cutting-edge technology. Unregulated AI systems may exacerbate social inequalities, lead to invasions of privacy, and introduce biases due to the large datasets on which they are trained.
The rise of trending AI technologies, particularly large language models (LLMs), introduces additional risks, including hallucinations (inaccurate or misleading outputs), over-reliance among societies, and various types of potential misuse.
To navigate these AI ethical dilemmas, a robust and scalable governance framework is essential. This framework should mitigate the inherent risks of AI while allowing its transformative potential to flourish.
This article explores the state of AI governance and ethics in organisations across the SEA-6 countries, particularly in light of the ASEAN Guide on AI Governance and Ethics. Drawing from Kristina Fong’s paper, “From Paper to Practice: Utilising the ASEAN Guide on Artificial Intelligence (AI) Governance and Ethics”, this piece offers a thorough and actionable analysis of how tech businesses, notably MSMEs, in the region are navigating the complexities of responsible AI. By highlighting the successes and limitations of existing efforts, the op-ed suggests targeted recommendations for businesses, especially MSMEs, to leverage AI safely and ethically.
Strengths of the ASEAN Guide on AI Governance and Ethics
The ASEAN AI Guide provides a practical framework for deploying AI in commercial, non-military, or dual-use applications, offering real-world examples from industry partners to help businesses and governments effectively apply ethical AI practices. Its well-rounded approach promotes stronger collaboration between governments and businesses. Governments can use it as a foundation for policy development, while businesses can tailor the guidelines to specific AI use cases.
One of the guide’s most significant strengths is its value for MSMEs, which often lack dedicated tech and legal teams. The guide offers actionable and practical guidance, empowering these businesses to implement AI responsibly. By doing so, it helps build user trust, which is crucial for attracting more customers and encouraging broader adoption of AI technologies for sustainable and ethical growth.
Challenges in Implementing the ASEAN AI Guide
Drawing on insights from Kristina Fong’s research, this section explores the challenges and limitations organisations face when translating the ASEAN AI Guide from policy into practice. Fong identifies three primary areas where the ASEAN AI Guide requires improvement to facilitate effective AI implementation for commercial use in the ASEAN region:
- Cost: Businesses must allocate funds for technical support, risk management, and compliance teams to effectively adhere to the guidelines.
- Talent: AI development requires a workforce with advanced skills and specialised knowledge. Even when qualified candidates are available, organisations may struggle to afford the substantial compensation required. For example, in some large companies, research team compensation makes up a significant portion of AI system development costs.
Source: TIME, 2024
- Readiness Discrepancy: There is often a readiness gap between government institutions and businesses. Even if regulatory and institutional foundations are well-established, businesses may not be fully equipped due to a lack of resources or infrastructure. However, some businesses may be more prepared than the institutional framework, as they lead in AI adoption and innovation.
Another issue is that the ASEAN AI Guide currently focuses solely on traditional AI applications and does not provide specific guidelines for Generative AI (GAI). This omission is notable, given GAI’s unique capabilities, complexity, and risks compared to traditional AI systems. As AI adoption accelerates, a customised framework is necessary to address GAI’s specific challenges and encourage responsible and ethical deployment.
Source: McKinsey, 2024
Policy Solutions: Addressing AI Governance and Ethics Challenges
The existing challenges of the ASEAN AI Guide disproportionately affect MSMEs compared to larger companies, making it essential for governments to introduce policies that help close this gap.
While the ASEAN AI Guide focuses on preventative measures, there is an urgent need for ex-post regulations to address AI-enabled cybercrimes. Governments can leverage existing legal frameworks, but relevant institutions need to strengthen their capacity to effectively handle AI-related cases.
To reduce the financial burdens on MSMEs while implementing the ASEAN AI Guide, governments might consider offering time-limited tax breaks or matching grants to help build AI capabilities for sustainable business development.
Recommendations for Tech Businesses, Especially MSMEs
Businesses should ensure AI is accessible and inclusive by building a foundation of continuous learning and upskilling through regular training programs, workshops, and challenges. This equitable and inclusive approach across the organisation will empower the workforce to engage with AI effectively, contributing to overall success.
Collaboration is critical for successful, inclusive, and safe AI adoption across the region. Therefore, businesses should actively collaborate with regional bodies like ASEAN, national governments, and industry stakeholders to drive AI development and governance.
Instead of diving into complex and potentially overwhelming systems, businesses—especially MSMEs—should begin with AI tools that are scalable and aligned with their specific needs. As the business grows, these solutions can be expanded, allowing for gradual integration. This approach minimises risks and reduces costs, while ensuring businesses remain agile and adopt the latest innovations over time, driving sustainable growth.
Instead of diving into complex and potentially overwhelming systems, businesses, especially MSMEs should begin with AI tools that are both scalable and aligned with their specific needs. As the business grows, these solutions can be expanded, allowing for gradual integration. This approach minimises risks and reduces costs, while also ensuring the businesses remain agile and adopt the latest innovation over time, thereby driving sustainable growth.
The ASEAN Guide on AI Governance and Ethics lays a strong foundation for responsible AI development, offering essential guidelines to navigate the challenges of AI adoption. By drawing on complementary insights from Kristina Fong’s research, businesses—particularly MSMEs—can use this guide to foster collaboration, promote continuous learning, and adopt scalable AI solutions. In doing so, they can not only mitigate risks but also harness the transformative potential of AI to drive sustainable growth and maintain their competitive edge in Southeast Asia’s evolving digital landscape.
About the Writer
Nguyen Hoang Minh Ngoc is an ASEAN Scholar pursuing a major in Data Science and Artificial Intelligence at Nanyang Technological University, Singapore. She has actively participated in a variety of prestigious tech-driven programs, including the TechGirls initiative, fully sponsored by the U.S. Department of State, and the Stanford University SHTEM program. Her research interests lie at the intersection of data science, applied AI, human-machine interaction, and the societal impact of technology, reflecting her commitment to leveraging technology for social good.
The views and recommendations expressed in this article are solely of the author/s and do not necessarily reflect the views and position of the Tech for Good Institute.
