Why AI Adoption Faces Challenges in Southeast Asia
A recent report from Salesforce suggests that artificial intelligence (AI) adoption may face unique challenges in Southeast Asian markets. While many global businesses are rushing to integrate AI into their daily operations, companies in this region are carefully weighing the costs and benefits of the new technology.
One of the main reasons for this hesitation is the cost of human labour. In many Southeast Asian countries, hiring a call centre agent is significantly cheaper than the cost of running complex AI queries. Because human workers are affordable and highly capable, businesses often find that the financial investment required for AI does not always lead to immediate productivity gains.
For many local companies, the decision to switch to AI is not just about technology, but about economics. If a business can achieve similar or better results using a human workforce at a lower price, they are less likely to replace those workers with automated systems. This creates a different landscape for innovation compared to Western markets where labour costs are much higher.
However, experts note that this does not mean AI will be ignored in the region. Instead, businesses are likely to adopt AI more slowly and strategically. They are looking for specific areas where AI can add value beyond just replacing human roles, such as improving data analysis or speeding up complex administrative tasks.
As the technology becomes more affordable over time, the balance between human labour and AI may shift. For now, companies in Singapore and the wider region are focusing on practical solutions that make sense for their specific economic environments.