If we were to describe the global tech industry in 2023 with just one phrase, it would be artificial intelligence. Its widespread popularity began in late 2022 when ChatGPT was launched by OpenAI and became an instant sensation with...
If we were to describe the global tech industry in 2023 with just one phrase, it would be artificial intelligence.
Its widespread popularity began in late 2022 when ChatGPT was launched by OpenAI and became an instant sensation with its ability to generate a wide array of content, from travel itineraries to codes for computer programs. Since then, the global tech industry’s centre of the conversation shifted from other popular verticals such as blockchain.
AI startups in many places around the world announced funding rounds; businesses have also accelerated their experimentation with the technology. Even the dramatic firing (and return) of OpenAI CEO Sam Altman was not enough to deter anyone from the verticals.
As we move towards the end of the year, we have one big question hanging in our mind: What is coming up next?
AI in Asia
According to data compiled by data analytics company AltIndex.com in recent coverage by e27, Asian AI companies are reported to have raised the second-highest value in funding rounds, or over US$96 billion.
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“Despite the VC funding slowdown, the strong fundraising activity continued this year, tuning 2023 into the second-best year for fundraising in the AI market’s history after 2021.”
This number is also expected to continue growing in 2024 as investors give more attention to AI companies around the world.
Outside of funding, Southeast Asian (SEA) countries such as Singapore continue to put AI on their national agenda with the announcement of the National Artificial Intelligence Strategy (NAIS) 2.0 framework, which includes a tripling of its AI expert pool.
With this development, e27 predicts that AI will continue to dominate the conversation in 2024. However, there will be a heightened focus on its security and regulatory aspects.
This was affirmed by the insights shared by Bee Kheng Tay, President of Cisco ASEAN.
“In 2024, businesses in ASEAN will have to grapple with how they can weave AI into their organisations effectively, whilst taking advantage of other emerging trends impacting the business landscape,” she writes in a commentary.
Tay stresses that a movement towards responsible and ethical AI is gaining momentum.
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“Governance, underpinned by trust and transparency, is at the forefront of this movement. While the transformative benefits of AI are evident, navigating its adoption comes with inherent risks. Organisations need a robust framework of policies and protocols to guide the ethical and responsible management of data and AI systems,” she says.
“In ASEAN, the need for enhanced AI governance is evident. Only 36 per cent of organisations claim to have highly comprehensive AI policies and protocols in place, and a concerning 21 per cent lack systematic mechanisms to detect data biases. Recognising the evolving regulatory landscape, companies must stay updated on local and international regulations. Implementing internal policies that address data privacy, security, and the ethical use of AI technology is imperative. This includes embedding security, privacy, and trust by design processes throughout the innovation lifecycle of AI applications.”
If we look at the Web3 vertical, which was the main theme of 2022, the progress we saw in 2023 is that industry players are becoming more open about working with regulators in the region.
There is a greater awareness of how far they can go by collaborating instead of competing—we saw similar changes in the fintech ecosystem years ago as more banks opted to work together with startups.
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Image Credit: RunwayML
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