At the CNBC East Tech West 2025 conference held in Bangkok, Thailand, on June 27, 2025, global technology leaders and policymakers underscored the critical need for developing countries to embrace sovereign AI. This emerging concept, which involves a nation controlling its own AI technologies, data, and infrastructure, is seen as a pathway to technological independence and economic growth, particularly in the Association of Southeast Asian Nations (ASEAN) region. With a population of nearly 700 million, 61% of whom are under 35, and approximately 125,000 new internet users daily, ASEAN is poised to become a hub for AI innovation. This article explores the significance of sovereign AI, the role of open-source models and cloud computing, and the ambitious AI strategies of ASEAN nations.
Understanding Sovereign AI
Sovereign AI refers to a nation’s capability to develop, deploy, and manage artificial intelligence using its own infrastructure, data, and workforce. Unlike global AI models, which are often dominated by English-based large language models (LLMs) like those from Western tech giants, sovereign AI ensures that technology aligns with a country’s cultural, linguistic, and security priorities. According to NVIDIA, sovereign AI enables nations to harness economic dividends and productivity gains while maintaining strategic autonomy. For developing countries, this approach mitigates the risk of dependency on foreign technologies that may not address local needs.
The importance of sovereign AI was a key discussion at the CNBC East Tech West 2025 conference. Kasima Tharnpipitchai, head of AI strategy at SCB 10X, highlighted the lack of sovereignty in current AI ecosystems, noting that English-centric models often fail to serve diverse populations. By developing localized AI, countries can create solutions that resonate with their unique contexts, fostering inclusivity and innovation.
Why Sovereign AI Matters for Developing Countries
The ASEAN region, with its young, tech-savvy population and rapidly growing digital economy, is an ideal candidate for sovereign AI development. Many global LLMs are less effective in regions with diverse languages and cultures, limiting their applicability. Sovereign AI allows countries to build models that understand local languages, such as Thai, Bahasa Indonesia, or Vietnamese, and address specific societal challenges, from healthcare to agriculture.
Moreover, sovereign AI enhances data security and compliance with local regulations. As Francesco Tisiot from Aiven noted, sovereign AI ensures “complete control and ownership of the data journey”. This is particularly critical in developing nations where data privacy laws are evolving, and reliance on foreign infrastructure could expose sensitive information.
The Role of Open-Source AI and Cloud Computing
Open-source AI models are pivotal in enabling sovereign AI. Models like Meta’s Llama and China’s DeepSeek provide a foundation for countries to customize AI solutions without starting from scratch. These models foster a “collective energy” for competition, as seen in China’s rapid AI adoption, which has strengthened its global competitiveness. By leveraging open-source frameworks, developing countries can reduce costs and accelerate innovation.
Cloud computing further democratizes AI access through pay-as-you-go models offered by providers like AWS, Microsoft Azure, Tencent Cloud, AIS Cloud, and True IDC. These platforms lower the barriers to entry, allowing resource-constrained nations to access advanced computing infrastructure. The United Nations Conference on Trade and Development (UNCTAD) recommends shared AI infrastructure and open-source models to prevent inequality, ensuring that developing countries can compete in the projected $4.8 trillion AI market by 2033.
ASEAN’s Ambitious AI Strategies
ASEAN countries are actively pursuing sovereign AI through national strategies tailored to their unique needs. Below is an overview of key initiatives:
| Country | AI Strategy | Key Goals | Timeline |
| Thailand | National AI Strategy (2022-2027) | Educate 600,000 citizens, build digital ID platform, attract data center investments, become regional AI hub | By 2027 |
| Singapore | NAIS 2.0 (2019, updated 2023) | Lead in education, healthcare, security; triple AI workforce | 2023-2028 |
| Vietnam | National AI Strategy (2021-2030) | Top-4 in ASEAN, top-50 globally in AI research and application | By 2030 |
| Indonesia | National AI Strategy (2020-2045) | Center for education, technology, civilization; focus on health, education | By 2045 |
| Malaysia | AI Roadmap (2021-2025) | Drive competitiveness, innovation; National AI Office launched 2024 | By 2025 |
- Thailand: The National AI Strategy (2022-2027) aims to position Thailand as a regional AI hub by 2027. It includes plans to educate 600,000 citizens, develop a digital ID platform, and attract foreign investments in data centers, with collaborations like Huawei Cloud.
- Singapore: Since 2019, Singapore’s National AI Strategy has driven innovation in education, healthcare, and security. The NAIS 2.0, launched in 2023, aims to triple the AI workforce and establish Singapore as a global AI leader.
- Vietnam: The 2021-2030 AI Strategy targets Vietnam as a top-4 ASEAN and top-50 global AI player by 2030, focusing on governance, security, and economic growth.
- Indonesia: The 2020-2045 National AI Strategy emphasizes health, education, and technology, aiming to make Indonesia a global AI hub.
- Malaysia: The 2021-2025 AI Roadmap, supported by the National AI Office launched in 2024, projects a $115 billion AI contribution to GDP by 2030.
- Philippines: The NAISR 2.0, updated in 2024, focuses on generative AI and ethics, aiming to establish the Philippines as a regional AI research hub.
Challenges and Opportunities
Despite the promise of sovereign AI, challenges remain. Talent shortages, infrastructure limitations, and evolving data protection laws pose hurdles. For instance, Indonesia faces a shortage of IT specialists, while Vietnam struggles with fragmented data systems. However, the potential for economic growth, improved public services, and global competitiveness drives these nations forward. Malaysia’s $16 billion in IT investments in 2024, including Google’s $2 billion for data centers, exemplifies this momentum.
Region-wide, ASEAN countries are enacting data protection laws to support responsible AI. Thailand is preparing an AI regulation law, while Singapore, Malaysia, and the Philippines have established frameworks to ensure ethical AI use. These efforts align with global trends toward transparency and data security, fostering trust in AI technologies.
Conclusion
The push for sovereign AI in developing countries, particularly in ASEAN, reflects a strategic move toward technological independence and economic resilience. By leveraging open-source AI models and cloud computing, these nations are overcoming resource constraints to build AI ecosystems that serve their unique needs. The ambitious strategies of Thailand, Singapore, Vietnam, Indonesia, Malaysia, and the Philippines signal a commitment to innovation, with the potential to transform industries and improve quality of life. As the global AI market is projected to reach $4.8 trillion by 2033, the focus on sovereign AI positions developing countries to compete on the world stage, provided they address regulatory and talent challenges.