Southeast Asia's AI Investment Set to Reach $110 Billion by 2028

Southeast Asia (SEA) is emerging as a significant player in the global artificial intelligence (AI) market, with spending expected to reach $110 billion by 2028, according to IDC forecasts. This marks an annual growth rate of 24% across the Asia-Pacific region.

The rapid advancement of AI technologies is accompanied by an increasing demand for vast amounts of data. Experts warn that the need for training data may outstrip the availability of public human text data by 2026, raising concerns regarding data quality, privacy, and the risk of overtraining AI models.

With over 1,200 languages spoken in SEA, including more than 700 in Indonesia and around 175 in the Philippines, collecting high-quality data is particularly challenging. Natural Language Processing systems often struggle with this linguistic diversity, which can lead to unreliable AI outputs if low-quality data is used.

Overtraining is another issue, where AI models become too finely tuned to their training data, limiting their adaptability to new information. This is exacerbated when models are trained on AI-generated data, creating potential biases.

Despite these challenges, synthetic data generation is proving useful in fields like autonomous vehicles. However, it requires significant GPU processing power, leading to high energy demands and costs.

Experts suggest that organizations should embrace smaller language models (SLMs) tailored to specific tasks for efficiency. Upgrading data infrastructure and collaborating with eco-conscious partners can help balance performance and sustainability.

As AI continues to evolve, a collaborative approach within organizations is crucial for reducing bias and achieving effective outcomes. While the path to AI success is complex, SEA’s innovation and investment in AI signal a promising future.

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