A recent study commissioned by IBM has found that the Philippines is lagging behind its Southeast Asian counterparts in terms of artificial intelligence (AI) readiness. Conducted by Ecosystm, a digital research and advisory firm based in Singapore, the study surveyed 372 technology, data, and business leaders across five ASEAN countries.
The results from the IBM survey indicate differing levels of AI readiness within the region, with Singapore at the forefront—23% of respondents there consider their organizations ready to leverage AI. This is followed by Indonesia at 22%, Thailand at 20%, Malaysia at 19%, and the Philippines trailing at 16%.
Titled “The AI Readiness Barometer: ASEAN’s AI Landscape,” IBM’s report provides detailed insights into both the challenges and opportunities of AI adoption in the region. It outlines five stages of AI readiness: Traditional, Emerging, Consolidating, Transformative, and AI-first. Organizations in the Traditional stage exhibit limited AI capabilities, while those in the Emerging stage are starting to engage with AI technologies. The Consolidating stage sees AI being integrated into wider operational areas, and the Transformative stage marks the use of AI to drive significant organizational changes. The AI-first stage represents organizations where AI is central to both strategy and operations.
The emergence of Generative AI (GenAI), notably since the release of OpenAI’s ChatGPT in late 2022, has significantly impacted industries worldwide. Despite the initial enthusiasm, many organizations are still grappling with how to fully utilize AI to enhance business efficiency and increase revenue. The report stresses the importance of moving beyond the initial excitement to integrate AI into core decision-making processes, thereby unlocking its transformative potential.
The study points out several industries beginning to utilize AI effectively. In the manufacturing sector, which includes automotive and electronics, 18% of organizations are employing AI. This is followed by the financial services sector, including banking, at 17%, and government entities at 16%. The travel and transportation sector is at 9%, while consumer and retail, as well as telecom and media sectors, both stand at 8%.
However, despite the increased uptake of AI, the report underscores that governance and compliance, crucial for AI deployment, are not currently prioritized by many organizations. Only 13% of respondents are concentrating on improving data governance and compliance. More focus is being given to identifying business use cases for pilots or Proof of Concepts (PoCs) at 25%, enhancing data quality, interoperability, and consistency at 22%, upskilling and reskilling employees at 21%, and adopting new technologies for data management at 19%.
Source: backendnews.net
 
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Historically, managing regulatory compliance has been a cumbersome, labor-intensive process. Organizations have had to navigate a complex maze of constantly evolving regulations that vary greatly across different jurisdictions.
Traditional methods, largely reliant on manual labor, are not only prone to human error but are also inefficient and costly. In a time when legislative changes can occur almost overnight, these outdated practices no longer suffice for businesses that need to remain agile and compliant.
The govtech space is undergoing a significant digital transformation, moving away from these old systems. Today, advancements in technology are facilitating more streamlined, accurate, and accessible ways to manage governmental and regulatory data. This shift is driven by the growth of data analytics, cloud computing, and particularly, artificial intelligence (AI). These technologies open new avenues for enhancing interactions and compliance with regulatory requirements for both government agencies and businesses.
Artificial intelligence, especially through developments in natural language processing (NLP), is revolutionizing the govtech sector. NLP enables the automated analysis of dense, text-heavy documents—a vital tool in an area dominated by extensive legislative writings and compliance materials. By utilizing AI, entities can swiftly sift through thousands of pages of regulatory documents to pinpoint relevant changes, comprehend their implications, and adapt their strategies accordingly.
Integrating AI into compliance processes offers several benefits. AI significantly boosts accuracy by minimizing the human errors common in manual reviews. It enhances efficiency by speeding up data processing, allowing resources to be redirected towards more strategic activities. Most importantly, AI enables strategic foresight, helping companies and government entities anticipate and adapt to potential regulatory changes before they occur, promoting proactive rather than reactive strategies.
For instance, Abstract, originally an AI research project from Loyola Marymount University, utilizes advanced NLP algorithms to analyze legislative documents and regulatory data for actionable insights. Their comprehensive data lake of government information identifies pertinent policy changes and provides clients with concise assessments of risks and opportunities. “Our AI platform allows businesses to discern policy changes that affect their operations, offering proactive strategies and enabling them to influence regulatory outcomes,” says Patricio Utz, Co-Founder & CEO of Abstract.
Abstract serves corporate legal, government affairs, and compliance teams, as well as investors interested in AI, B2B, legaltech, and govtech. Their ability to deliver comprehensive government coverage at a fraction of the cost required for an in-house team is particularly valuable. Abstract has positioned itself as a leader in regulatory compliance, appealing to both businesses and investors by leveraging AI’s capabilities in the govtech sector. By training their AI on millions of historical government documents, Abstract has developed a robust system that not only identifies relevant policy changes but also uses historical data to forecast potential impacts, enabling organizations to confidently navigate regulatory changes.
Looking forward, trends such as increased demand for government transparency and the growing complexity of regulatory environments will likely drive further adoption of technologies that provide real-time access to regulatory information and insights. The predictive analytics and detailed capabilities of AI will become increasingly valuable.
Companies like Abstract are not only providing essential tools for more effective compliance management but are also expanding the possibilities within the govtech space. Their efforts are setting the stage for a future where interactions between government and business are more dynamic, proactive, and data-informed.
As we continue to experience this digital shift, the importance of embracing innovative technologies in govtech is becoming evident. For both government entities and businesses, investing in AI and other digital tools is crucial not just for maintaining compliance but for securing a strategic edge in a progressively regulated world.
Source: gritdaily.com
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A survey by the Compliance Institute, the professional body for compliance specialists, reveals that 37% of organizations in Ireland’s financial services sector have already integrated AI tools into their core work processes to some extent.
However, the poll, which involved 175 compliance professionals, also found that 60% have not yet adopted AI technology, and a mere 3% believe their organization will not be using it in the foreseeable future.
In a significant regulatory development, the EU Parliament passed the AI Act in March 2024, setting out regulations for the use of artificial intelligence within the EU. Non-compliance with this Act could lead to substantial fines, ranging from €7.5 million to €35 million, depending on the infringement’s severity and the size of the company involved.
A notable 87% of respondents anticipate that compliance with the AI Act will be considered part of their duties as compliance professionals. Despite this expectation, 93% of those surveyed admit to having little or no knowledge of the AI Act’s specifics, given its recent approval.
Michael Kavanagh, CEO of the Compliance Institute, commented on the findings: “The results demonstrate that AI is gradually making its way into financial service organizations, and we expect this trend to gain momentum. It’s crucial now for professionals to develop their skills concerning AI and the requirements of the new Act.”
Source: businessplus.ie
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