AI and Digital Economies: A Comparative Analysis of South and Southeast Asia and Africa

Abstract

This study aims to analyze the adoption of Artificial Intelligence (AI) in South and Southeast Asia and Africa, focusing on how AI technologies shape the digital economies in these regions. The objective is to assess AI's role in key sectors such as energy, manufacturing, healthcare, and finance, and examine its impact on policy formulation, public service delivery, and governance. The paper employs a comparative literature review methodology. Data is gathered from secondary sources, including academic papers and reports, to analyze AI infrastructure, policy frameworks, sectoral impacts, and barriers to adoption. The study identifies similarities and differences in AI integration across the regions. The study reveals that South and Southeast Asia have made greater advancements in AI adoption, driven by stronger infrastructure and government policies, while Africa faces challenges due to infrastructure deficits and limited AI expertise. However, both regions show potential for leveraging AI to drive economic growth, particularly in underserved sectors like agriculture and financial inclusion. Additionally, the research highlights the critical role of AI governance, with a strong need for both regions to develop robust regulatory frameworks to ensure responsible and ethical AI implementation. The study is limited by its reliance on secondary data, which restricts deeper insight into on-the-ground challenges. Future research should incorporate field studies and interviews with AI practitioners for a more comprehensive understanding of AI’s impact. This paper contributes to the limited comparative research on AI adoption between South and Southeast Asia and Africa. It offers insights for policymakers and industry leaders on how AI can be harnessed for inclusive economic growth and transformation in these regions.