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    Opportunities remain available for market entrants to build on AI models

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    Artificial intelligence (AI) regulations do not necessarily prevent smaller players from entering the market, and there is an opportunity to build use cases on top of the current leading platforms.

    Critics of regulatory policies such as mandatory certification and licensing requirements argue that these rules strengthen the foothold of large market players while raising barriers to entry for start-ups seeking to enter the market. There is.

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    Andrew Ng, a professor at Stanford University and co-founder of Google Brain, said such regulations would stifle innovation and suggested AI could be made safer through compulsory licensing. Ta. “There are definitely big technology companies that don’t want to compete with open source,” he said. [AI]Therefore, they are creating fear that AI will lead to the extinction of humanity,” Ng said in a recent article. Australian Financial Review interview.

    Ng noted that no policy is better than bad policy, but instead pointed to the importance of “thoughtful” regulation, including the need for transparency for technology companies. The measure could have helped these companies prevent the damage caused by social media and could have insulated the industry from similar consequences from AI, he said.

    But AI regulations don’t necessarily inhibit start-ups and market entrants, says Florian Hoppe, partner and head of Asia Pacific vectors at Bain & Company, in ZDNET’s article on the law’s impact on AI innovation. said in response to a question.

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    For example, large-scale language models (LLMs) are expensive to build, and smaller players typically lack the resources to develop their own language models. However, Hoppe says there are opportunities to build new use cases on top of his existing LLM, such as specialized AI applications and domain-specific AI applications and models.

    He added that regulation will play a necessary role in mitigating AI risks, as startups will be able to develop such products without the constraints of having to build their own LLMs. .

    Google’s Southeast Asia vice president Sapna Chadha added that there is also a healthy conversation between governments and industry stakeholders about how the regulatory framework for AI should evolve going forward. Chadha said this is the case in the region, which is a technologically and digitally advanced region, setting the Southeast Asian market on the right path to strike the right balance between regulatory needs and the requirements to drive market innovation. Ta.

    Fok Wai Hung, head of South East Asia at Singapore’s state-owned investment company Temasek Holdings, said that AI is in good hands to ensure it delivers economic and business benefits while guarding against potential risks such as data bias. He said that a safe environment is essential.

    Driving Southeast Asia’s digital economy revenue to $100 billion

    In fact, data infrastructure and regulation are one of the key factors driving the region to become a sustainable digital economy, according to the latest e-Conomy SEA (Southeast Asia) report published by Google, Temasek and Bain & Company. That’s one.

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    Investments in digital and physical infrastructure and economic development plans will make digital companies more able to expand beyond metropolitan areas, where demand for digital products and services is growing, the report says. . If done right, these investments can accelerate digital adoption and reduce the cost of services.

    This year’s e-economic report says the region weathered global macroeconomic headwinds better than other regions, with GDP growth exceeding 4% and consumer confidence falling to a low level in the first half of 2023. However, it is said that there will be a recovery in the second half of the year. .

    Southeast Asia’s digital economy is expected to reach $100 billion in revenue this year, with a compound annual growth rate of 27% from 2021 onwards, growing 1.7 times faster than gross merchandise merchandise (GMV). The report estimates that e-commerce, travel, transportation and media will account for $70 billion in revenue.

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    GMV is expected to reach $218 billion in 2023, up 11% year-on-year, with travel and transportation expected to surpass pre-pandemic heights next year.

    E-commerce continued its growth trajectory this year, with sales reaching $28 billion, a 22% increase over the previous year. The gross merchandise value of this sector is predicted to increase to $139 billion in 2023 and reach $186 billion in 2025 with a growth rate of 16%.

    To further sustain digital growth in the region, the report notes that digital companies need to focus on monetization and establish a path to profitability. Additionally, digital inclusion remains critical and governments in the region must continue to invest in building infrastructure and closing connectivity gaps in rural areas. This will ensure that digital services are accessible even in areas where consumer demand is increasing.

    The report also calls for the development and harmonization of policies and agreements across Asean, such as trade agreements and data governance agreements, to ease cross-border data flows and digital economic activities.

    For example, a policy framework for responsible AI development includes a “balanced legal framework for AI innovation, with privacy laws that protect personal data and enable reliable cross-border data flows.” ‘ can be included.

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    AI governance frameworks also need to be interoperable across regions and the world, with the development of common standards and shared best practices to ensure that AI technologies are developed and adopted responsibly. there is.

    Although Southeast Asia is showing resilient growth, the region is fragmented with diverse markets and siled policy frameworks, Fok said. He called for a focus on establishing unified, multilateral agreements, such as the Digital Economy Agreement, and bringing together different efforts across individual markets.

    He said a “single digital Southeast Asia” market with interoperability and seamless connectivity could be a model to drive growth in the region. Singapore, for example, already has digital economy agreements with countries such as France, New Zealand and the UK, and may be considering similar agreements with Southeast Asian countries.

    In September, ASEAN member states announced they were working to establish protocols to facilitate cross-border digital trade and help address emerging trends such as AI. The ASEAN Digital Economy Framework Agreement is targeted for completion by 2025 and will improve digital rules across key areas such as digital trade, cybersecurity, payments and data. The framework aims to facilitate seamless cross-border online transactions and ease of doing business within the region.

    ASEAN also championed a unified approach in cybersecurity and pledged to foster further cooperation among member states, including plans to adopt common standards and best practices. To date, Asean is the only regional organization that has agreed in principle to the United Nations’ 11 voluntary and non-binding norms on the responsible conduct of states in cyberspace.

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