In the 12 months through April 2026, China, Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam exported US$1.4 trillion worth of artificial intelligence (AI)-related goods. Computers, servers, and networking equipment made up part of this trade, as demand grew for the infrastructure needed to develop and run AI technologies.
However, the benefits of this surge in demand have not been evenly distributed across the region. The World Bank’s October 2026 East Asia and Pacific Economic Update, titled Riding the AI Wave, shows that Southeast Asian countries face a challenge beyond supplying goods to the global AI industry: making use of the technology within their own economies.
AI Exports Benefit Some Countries More Than Others
The United States imported US$739 billion worth of AI-related goods in the 12 months through April 2026, with one-third coming from East Asia and the Pacific. This demand drove more than 70% of export growth in Malaysia, the Philippines, Thailand, and Viet Nam.
Thailand and Viet Nam supplied finished equipment, such as computers, servers, and routers, which accounted for 69% and 60% of their respective AI-related exports. Malaysia also attracted significant investment in data infrastructure, with announced greenfield projects in 2023–2024 equivalent to 3.7% of its GDP.
Indonesia has yet to see similar gains. Unlike its regional peers, the country has not significantly benefited from integration into AI value chains, despite healthy domestic demand.
Why Exports Alone Are Not Enough
Beyond supplying equipment, countries also need to use AI to help businesses operate more efficiently and improve productivity. One challenge is that workers across the region have limited opportunities to benefit from the technology.
Around 40% of jobs in developing Southeast Asia involve tasks that could be affected by AI. However, only 13% of these AI-exposed jobs involve nonroutine cognitive tasks, such as complex analysis. In advanced economies, the share reaches 39%.
This means that although AI could reshape many jobs in Southeast Asia, fewer workers in the region perform tasks that the technology can directly augment. The World Bank suggests that this creates a lower risk of job displacement in the near term, but also limits the potential productivity gains from AI.
Expanding AI Adoption
Southeast Asian countries do not need to develop their own AI technologies to benefit from them. The World Bank identifies adopting existing AI tools and adapting them to business needs as an important step, particularly for companies with limited funding and technical expertise.
In the Philippines, AI helps rice farmers monitor crop conditions using satellite data and supports access to financing. In Viet Nam, small hotels and tour operators use AI to create promotional materials and adjust prices. These examples show how AI can help businesses in agriculture and tourism carry out specific tasks more efficiently.
However, adoption still faces barriers, including costs, limited knowledge, and concerns about data security. Access to technology alone is therefore not enough. Businesses and workers also need the skills to use it effectively.
The Risks of Relying on the Global AI Industry
Countries that depend on AI-related exports are also vulnerable to shifts in global demand. The World Bank estimates that global AI capital spending will reach US$2.9 trillion over 2025–2028, with around US$800 billion expected to be financed through private credit.
The scale of this investment highlights both the size of the AI industry and the potential risks if corporate spending slows. For Southeast Asia, expanding domestic AI adoption could complement its role as a global supplier. This would allow the region to benefit not only from export demand but also from productivity gains among its own businesses.
