AI and cloud computing are significantly boosting economic growth in the Asia-Pacific region, contributing over 2.4% to the regional GDP in 2024. The extent of these economic gains hinges on the implementation of supportive digital policies, workforce reskilling initiatives, and robust infrastructure development.
To fully leverage the potential of AI and cloud, governments should prioritise policies that promote cloud adoption, including 'cloud-first' strategies, competitive cloud service models, and effective procurement mechanisms. Policies that allow cross-border data storage and processing, along with cybersecurity regulations aligned with international standards, are also crucial. Complementary initiatives, such as expanding fixed broadband access and fostering digital skills, are necessary to maximise the economic impact.
However, Asia-Pacific economies are likely to experience labour market shifts because of AI, with advanced economies being affected more. Policymakers can counteract this with effective social safety nets, reskilling programmes and regulations to promote ethical use of the technology.
