AI to Become ASEAN’s Enterprise Engine in 2026

TechnoBusiness Opinion ● Artificial Intelligence (AI) has emerged as a game-changer for ASEAN businesses. Despite AI deployment still being nascent compared with Western economies, AI adoption is estimated to increase GDP across Southeast Asia by 10-18 per cent by 2030. Organisations can no longer ignore this tour de force that is set to evolve from pilot projects into a productive standard, underpinned by cloud ecosystems and cybersecurity. 

Here are the top tech trends expected to reshape enterprises, including industrial manufacturing, in the region in 2026 and beyond:

1. Greater focus on resilience and agility

Manufacturing is at the foundation of the ASEAN economy, with half of manufacturers in the region citing AI as the most critical trend in manufacturing today. The growth in edge AI in Thailand and Vietnam is expected to reduce manufacturing supply chain costs across Southeast Asia. Edge AI is also revolutionising processes across sectors such as government services, telemedicine, fintech, and agriculture.      

As we head into 2026, resilience and agility have emerged as critical pillars for success in these sectors amid an uncertain global economy. Those who embrace technology to absorb geopolitical, cyber, and technological shocks will gain a competitive edge. For ASEAN enterprises that integrate agility into their DNA, disruptions will not be a question of survival but a catalyst for innovation and business growth.

2. ERP: a strategic success factor

Migrating ERP systems to the cloud has been a deterrent for many companies, primarily due to the high initial cost. Despite this, many businesses are embedding automation and predictive analytics into ERP systems to optimise production. For instance, in Indonesia, SMEs have discovered that ERP-based processes have vastly improved operational efficiency and decision-making. Similarly, in Malaysia, retailers have been leveraging new technologies to transition to omnichannel models, meeting the demands of modern customers. 

ASEAN business leaders recognise that integrating cloud-based ERP systems with emerging technologies such as AI, IoT, and blockchain creates a digitally connected enterprise capable of responding swiftly and scaling effectively. This not only reduces technical debt and upfront investment costs but also achieves real-time transparency across all operations. 

3. Rise of generative and Agentic AI 

Enterprise intelligence is shifting from experimentation to execution and decision-making, with generative and Agentic AI improving both operations and customer experiences. However, some disparities remain across ASEAN markets. According to a BCG report, 73% of employees across the region believe independent AI agents will be important in the next three to five years, and 77% indicate their businesses are already deploying or experimenting with them. 

There is optimism and eagerness to embrace AI as a growth enabler in emerging economies such as Indonesia and India, but progress remains slow in other developing markets. Both generative and Agentic AI will surpass traditional automation in 2026. For ERP applications and supply chain management, this marks a transition that fundamentally changes how companies compete and create value.

4. Zero-Trust security key to unlock business success 

The ASEAN digital economy is booming. The World Economic Forum estimates that the region is the world’s fastest-growing Internet market, with 125,000 new users joining every day, driving growth in digital payments and e-commerce. Amid this accelerated digital growth, cyber threats–from ransomware to sophisticated AI-powered attacks–are larger than ever. 

This is where a Zero-Trust security architecture plays a pivotal role by assuming that security breaches are continuously verified at every access point. This involves multi-layered security strategies that use AI-supported analytics, behavioural monitoring, and automated responses. Embedding a Zero-Trust culture empowers employees while leveraging AI-driven threat intelligence to detect and neutralise complex attacks in real time, safeguarding sensitive data and ensuring operational security.

5. Upskilling a digital workforce

Digital skills will be essential to sustain the region’s tech momentum. The World Economic Forum’s Future of Jobs Report 2025 shows that ASEAN employers expect a significant shift in the skills required from employees over the next five years, but more than half are concerned that skill shortages could hinder growth. 

There is an urgent need for the workforce to keep pace with rapidly changing organisational requirements and technological progress. It is almost certain that companies in the region will increasingly use AI and automation to augment human capabilities. To attract and retain top talent, it is critical to tap into hidden workforce capabilities and create flexible, inclusive, and meaningful workplaces. Ultimately, by 2026, technology and people must work closely together to drive innovation and growth.●