Why Southeast Asian Languages Are Critical for AI Expansion

Southeast Asia is a rising hub for AI expansion, making it a treasure trove of opportunities for AI companies and investors globally. To maximize this market, it is wise to invest in developing AI models for Southeast Asian languages. After all, language is the key to unlocking the potential in the highly diverse Southeast Asian nations. Join CCCI as we discuss the importance of Southeast Asian languages for AI expansion!

Key Takeaways:

• Investing in Southeast Asian languages has great potential, thus opening opportunities in the Southeast Asian markets.
• Southeast Asia’s distinctive AI advantage is driven by its high digital native population, dynamic startup ecosystem, and government support.
• AI adoption in Southeast Asia, albeit still in its infancy stage, is rapidly growing.
• Southeast Asian Languages are the key to unlocking new markets through consumer engagement, local partnerships, and increased demand.
• CCCI comprises language experts capable of supporting language services in over 30 countries.

Table of Contents:

• The Role of Languages in AI Localization and Market Growth
• Southeast Asia’s Distinctive AI Advantage
• The Rapid Growth of AI Adoption in Southeast Asia
• Why Southeast Asian Languages are the Key to Unlocking New Markets
• Why You Should Invest in AI Localization for Southeast Asian Languages.

Languages play an important role in AI localization and market growth. It subtly provides a culture’s background. For effective localization, professionals must input large datasets of a particular language into the system. This helps the AI process the nuances of the language and culture and produce accurately localized materials.

English is the primary and most dominant language for AI research and development. Because of this, most AI can communicate well in English. However, there are also efforts to expand AI localization to additional languages.

According to research, the market size for AI translation has hit $2.18 billion in 2023. With a CAGR of 17.2%, it is expected to grow to $5.87 billion in 2031. As globalization increases, the world becomes more connected, producing more multilingual content. Consequently, this brings the need to develop our tools for translation and localization, such as AI.

The diversity of languages in AI models helps companies tap into new markets and foster growth. Developing AI models to cater to more languages is essential. There is also a lot of potential in investing in Southeast Asian languages, which opens many opportunities in the Southeast Asian markets.

Southeast Asia is home to 11 countries with over 1,200 languages. Data collection in Southeast Asia for AI models began years ago. In 2019, Singapore unveiled its state-backed national AI strategy. And most recently, in 2023, VinAI launched PhoGPT, a Vietnamese alternative to ChatGPT.

Companies investing in Southeast Asian languages for AI can collect data from the remotest communities in the region. Remember, Southeast Asia is a market full of potential. And by leveraging AI, companies can deliver services that fit the specific needs of the consumers. With that, AI development and expansion are facing rapidly growing demand.

Governments have implemented regulations regarding data collection for AI models in Southeast Asia. This ensures that the data and AI promote human dignity and inclusion. With this, multilingual models will bring service and satisfaction to everyone. Of course, bringing service to everyone means gathering large datasets to develop AI models. The good news is that technological developments in the Southeast Asian region are accelerating!

Now, why else should you invest in AI localization in Southeast Asia?

While AI is a relatively new development in the region, Southeast Asia holds an advantage in the game for several reasons. Brought further by the pandemic and globalization, the AI expansion in Southeast Asia has garnered unprecedented attention in the past years. This expansion is also referred to as the AI Boom, enhancing employment opportunities for the lower to middle class in the region in the sense of labor augmentation, among other things.

The region has an AI advantage primarily because of its high digital native population. Digital natives are those who were born after the year 1990 and were brought up in a progressively digital environment. Surveys show that the number of digital natives in Southeast Asia is higher than in North America and Europe, with statistics of 65.4%, 52.1%, and 46.8% of their population, respectively.

Digital natives are highly engaged with technology. Their digital life thrives on digital social interaction, digital entertainment, and digital payments. This makes it easier to generate data, and thus, easier and faster AI integration in their daily lives.

Moreover, the startup ecosystem in Southeast Asia is dynamic and young, with most startups only a decade old. This is advantageous for AI expansion because such companies utilize AI as an operational tool to automate tasks, generate data, improve customer experience, and offer solutions. Furthermore, it drives innovation and can be embedded in newer business models.

The startup ecosystem in Southeast Asia mainly revolved around e-commerce, fintech, and online services. The AI usage in Southeast Asia is almost, if not already, established. It is evident how Singapore has been dubbed the Silicon Valley of the region, and Thailand, Malaysia, and Vietnam emerge as startup hubs. 

The startup ecosystem in Southeast Asia is further improved with the utilization of AI. For example, Malaysia’s Grab, specializing in ride-hailing, and Singapore’s Lazada, specializing in e-commerce, started as startup companies in 2012. They mainly utilize AI systems in their operations, which enhance and personalize customer experience.

The collaborative support by the government is also an advantage in the region. In many Southeast Asian countries, initiatives are being made to utilize AI as a driving force for innovation and economic growth, national defense, and improved public services. Southeast Asian countries have developed their respective National AI strategy to prove this point.

Singapore was the first Southeast Asian country to develop its National AI Strategy in 2019, with a vision of using AI for the public good. Recently, they have also unveiled their Strategy 2.0 to continue the pace of the first one. Guided by their earlier strategy, the latest one aims to make AI a necessity rather than a mere opportunity, reaching global heights after succeeding locally, and creating systems after achieving their earlier projects.

Other Southeast Asian countries have followed suit. Indonesia unveiled Stranas KA 2020-2045, Malaysia with its AI Roadmap 2021-2025, and Thailand with its AI Thailand 2022-2027. The Philippines has also recently unveiled its National AI Strategy Roadmap 2.0, aiming to position the country as a center of excellence in AI Research and Development.

An economic boom in the use of AI in Southeast Asia is highly anticipated. With the ingress of digital users, particularly in the younger demographic, the need for technological advancements is also growing. 

AI localization in Southeast Asia is currently in its infancy stages. However, its rapid growth may soon catch up with the global demand. Reportedly, the region’s digital economy has grown twofold since its inception. The starting revenue was approximately $4 billion in 2022 but it peaked in 2024 with a whopping $11 billion.

With Southeast Asia’s unique market demands, its growth is unprecedented and may continue growing following the trend. Deep product localization using Southeast Asian languages and slang is an anticipated marketing trend. However, finding the right workforce to undertake this challenge must be a priority.

When considering expansion in countries outside the Western sphere, it is important to address several communicative issues first. Southeast Asian languages are a mix of diverse languages built from years of development and peaceful partnerships with foreign countries. As you can see, Southeast Asians use English as the primary communication medium. Whether in business, politics, or law, English acts as a bridge connecting highly different linguistic groups.

However, Southeast Asian languages are often taken for granted due to the extensive use of the lingua franca. This makes Southeast Asian languages an untapped potential for market growth, waiting to be developed and discovered. As such, AI localization in Southeast Asia should not only focus on bringing the product closer in a cultural sense. Let your consumers hear and read in their native language.

However, let us first understand the advantages of AI localization in Southeast Asia. How can Southeast Asian languages expand the market? How can you, as a company, bring yourself closer to the Southeast Asian market?

According to a 2020 survey, approximately 76% of customers prefer to buy products with information written in their native language. Consumers are more comfortable processing information in a language they can understand. Localization also plays an important role in building credibility by understanding cultural differences.

With the proliferation of online shops and AI expansion in Southeast Asia, building local partnerships can boost the base market. Locals trust local brands, especially when they have been household staples for years. Partnering with local businesses can help establish your business in Southeast Asian countries and help advertise your product to the locals.

There is a growing demand for data collection in Southeast Asia for AI models and AI localization. For instance, AI localization in Southeast Asia for healthcare and retail is important for citizens in far-flung villages. Quick and palatable information can build trust with consumers without expending much resources.

As globalization continues, the need for AI localization grows. AI localization services are key to entering new markets and growing your business. Following that, using multilingual AI models for Southeast Asian markets can significantly boost outputs. With the numerous advantages and opportunities for AI expansion in Southeast Asia, investing in Southeast Asian languages is a smart choice.

CCCI is the top choice for data collection services. Our team comprises language experts capable of supporting language services in over 30 countries, including Thailand, Malaysia, Vietnam, Indonesia, and the Philippines. With over 10 years of experience and a commitment to excellence, our team ensures efficiency and high-quality data collection. Make your AI smarter with our audio and speech collection services, and let our qualified staff handle your machine translation post-editing needs.

Together, let us grow with the digital world! Contact us today!