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Firms in East Asia Lag in AI Development
Leading firms in East Asia are struggling with AI development, impacting career opportunities in the region.
Tokyo, Japan — Leading firms in East Asia are lagging in the development of artificial intelligence (AI), raising concerns about the region’s competitiveness in the global market. A recent report from the Centre for Economic Policy Research (CEPR) highlights significant gaps in innovation and investment compared to Western counterparts.
The report indicates that while East Asia has made strides in adopting AI technologies, the pace of development and integration remains insufficient. This shortfall could hinder career growth and opportunities in a region increasingly reliant on technology to drive economic growth.
AI is a transformative force across industries. However, East Asia’s leading companies struggle to keep up with the rapid advancements made by firms in the United States and Europe. For instance, while global investment in AI reached $93 billion in 2023, East Asia accounted for less than 20% of this total, according to market analysis by McKinsey & Company. This disparity raises questions about the future of job creation and skill development in the region.
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Read More →One major issue highlighted in the CEPR report is the lack of skilled professionals in AI and machine learning. Despite a growing number of graduates in computer science, many lack the practical skills necessary for immediate employment in AI-driven roles. Companies are facing a talent shortage that is affecting their ability to innovate and compete. This gap poses a significant challenge for young professionals entering the job market.
This disparity raises questions about the future of job creation and skill development in the region.
Moreover, the cultural emphasis on hierarchical corporate structures in East Asia can stifle creativity and risk-taking, which are critical for AI innovation. The report notes that firms often prioritize short-term results over long-term investment in research and development. This mindset can deter talented individuals who seek dynamic environments that foster innovation.
Despite these challenges, there are opportunities for growth. Governments across the region are recognizing the importance of AI and are beginning to implement policies to promote its development. For example, the South Korean government has committed $2 billion to support AI research and development initiatives by 2025. This funding aims to attract top talent and stimulate collaboration between academia and industry.
Similarly, Singapore is positioning itself as a regional hub for AI by investing in education and infrastructure. The city-state’s focus on developing a skilled workforce is expected to create new job opportunities in the AI sector. Initiatives like the AI Singapore program aim to train 10,000 AI professionals by 2025, addressing the skills gap and preparing the workforce for future demands.
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Read More →In contrast, some firms in East Asia are already adapting their strategies to better align with global trends. Companies like Tencent and Alibaba are ramping up their AI capabilities, investing heavily in research and development to enhance their competitive edge. Their efforts highlight a proactive approach to overcoming the barriers that have traditionally hindered innovation in the region.
As the AI landscape continues to evolve, professionals in East Asia must remain agile and adaptable. The demand for AI skills will only increase, and those who invest in continuous learning and development will find themselves better positioned in the job market. Networking and collaboration across sectors can also provide valuable insights and opportunities for career advancement.
Initiatives like the AI Singapore program aim to train 10,000 AI professionals by 2025, addressing the skills gap and preparing the workforce for future demands.
Looking ahead, East Asia has the potential to emerge as a leader in AI development, but it will require concerted efforts from both the private and public sectors. By fostering an environment that encourages innovation, investment in education, and collaboration, the region can turn its challenges into opportunities for growth and leadership in the global AI economy.
