AI Policy Gaps in Asia Challenges for Businesses from China to Singapore

11 Jun, 2024

AI Policy Gaps in Asia Challenges for Businesses from China to Singapore

Asia's patchwork approach to regulating artificial intelligence is increasing uncertainty for companies eager to roll out the technology across the region, according to legal experts, industry analysts, and businesses themselves.

From China to Singapore, governments have hesitated to pursue region-wide rules, opting instead for AI policies tailored to their own national agendas. This approach, contrasting with the European Union's recently approved AI Act, risks creating a minefield for companies. Adrian Fisher from Linklaters notes that diverging laws across 15 to 20 major Asian countries make it difficult for companies to launch products.

Professional services company KPMG recently highlighted "AI governance gaps" as a key risk to business growth in the coming year, despite surging investment in the field. Cross-border regulation has been a hot topic since the emergence of generative AI in 2022, including at the U.N. Despite discussions between the U.S. and China, no concrete outcomes have emerged.

The EU has pulled ahead with its AI Act, expected to go into effect in stages. In Asia, China has been proactive with administrative guidelines and plans for a general AI law. However, other governments are wary of heavy-handed regulation. Japan and South Korea are considering frameworks, while Singapore prefers issuing guidelines. Businesses like Verizon and SAP emphasize the need for regulatory clarity to fully benefit from AI innovations.

Without region-wide rules, Asia risks having less influence in the global AI conversation. The political and digital diversity in Asia makes crafting a common AI policy extremely difficult, according to experts. Businesses must prepare to navigate varying and sometimes competing regulatory frameworks across the region