Exclusive-Southeast Asia eyes hands-off AI rules, defying EU ambitions

Southeast Asian countries are adopting a business-friendly approach to artificial intelligence (AI) regulation, diverging from the European Union’s (EU) push for globally harmonized rules. Reuters has reviewed a confidential draft of the Association of Southeast Asian Nations’ (ASEAN) “guide to AI ethics and governance,” which has not previously been reported.

The draft is currently being circulated to technology companies for feedback and is expected to be finalized in January 2024 during the ASEAN Digital Ministers Meeting. Companies such as Meta, IBM, and Google have received the draft for review.

The EU had previously attempted to convince Asian governments to follow its lead in adopting new AI rules for tech firms, including the disclosure of copyrighted and AI-generated content. However, the ASEAN “AI guide” takes a different approach by asking companies to consider cultural differences and not prescribing unacceptable risk categories. It remains voluntary and serves as a guide for domestic regulations.

Southeast Asian countries with their diverse population and varying laws governing censorship, misinformation, public content, and hate speech present a challenge for AI regulation. For instance, Thailand has laws against criticizing its monarchy. The approach taken by ASEAN is considered more business-friendly as it limits the compliance burden and allows for more innovation.

IBM Asia’s vice president of government affairs, Stephen Braim, said, “We are also pleased to see this guide aligns closely with other leading AI frameworks, such as the United States’ NIST AI Risk Management Framework,” referring to voluntary guidelines developed by the U.S. Department of Commerce’s National Institute of Standards and Technology. However, Meta and Google have not responded to requests for comment.

The ASEAN guide recommends governments support companies through research and development funding and establishes an AI implementation working group. Senior officials in three ASEAN countries believe the EU has rushed into regulation without fully understanding the technology’s benefits and harms. The guide advises companies to have an AI risk assessment structure and AI governance training but leaves the specifics to individual companies and local regulators.

The guide also highlights the risks of AI being used for misinformation, deepfakes, and impersonation, but individual countries will determine the appropriate response. Similar relaxed approaches to AI regulation have been adopted by other Asian nations like Japan and South Korea. This casts doubt on the EU’s goal to establish a global standard for AI governance.

While ASEAN does not have the power to make laws, its preference for member states to determine their own policies sets it on a separate track from the EU. However, EU officials and lawmakers state that the bloc will continue to hold talks with Southeast Asian states to align on broader principles. The EU aims to establish similar principles regarding AI and human rights.

As the EU faces challenges in creating global consensus on AI regulation, it remains committed to working together with Southeast Asian states. Dutch minister for digitalization, Alexandra van Huffelen, said, “I don’t think we are very far off from that we couldn’t bridge the differences.”