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ASEAN member nations’ flags outside the Pullman Hotel, the venue for the ASEAN Foreign Ministers’ retreat meeting in Luang Prabang, Laos, in January 2024.

Tang Chhin Sothytang Chhin Sothy | Afp | Getty Images

The U.S. and China are usually top of mind when it comes to artificial intelligence and generative AI. But Southeast Asia’s small businesses have huge potential that shouldn’t be ignored, experts say.

In fact, it’s a matter of survival, according to Jochen Wirtz, a professor of marketing at the National University of Singapore Business School, who said those that fall behind will be “moved into a franchise business or will be pushed out of the market by bigger players who do it.”

“Either you grow and adopt, or you die,” he added.

AI and genAI will contribute about $120 billion to the region’s gross domestic product by 2027, Boston Consulting Group projected in an April report titled “Unlocking Southeast Asia’s AI Potential,” which cited the technology’s potential to “redefine business processes and unlock new revenue streams.” And Google’s e-Conomy SEA 2024 report found that Singapore, the Philippines and Malaysia are ranked among the top 10 globally for AI-related searches and demand, indicating “curiosity” and an “active interest” within the region.

Youth is an advantage. Among surveyed countries in the Asia-Pacific, Vietnam, Malaysia and the Philippines have the highest percentage of business owners or leaders under 40 years of age, according to CPA Australia’s Small Business Survey 2024-25.  

For countries such as Vietnam, “the future is bright because … it’s a very young population, is a very internet-savvy population,” said Soumik Parida, associate program manager of the professional communication program at RMIT University Vietnam’s School of Communication and Design. “They are starting to have a global voice and they’re very easy to adapt any new technology,” he added.

Here’s how some of the region’s businesses are using it to stay on top of the competition — as well as the opportunities and roadblocks they face.

Most popular use cases

Customer service is the leading use case in Southeast Asian e-commerce, followed by marketing and advertising, according to a joint report by Lazada and Kantar about AI adoption trends in the six largest economies in Southeast Asia. Also known as the ASEAN-6, they comprise Singapore, Malaysia, Vietnam, Indonesia, the Philippines and Thailand.

A McKinsey survey released in March revealed a similar trend: Companies have adopted genAI for marketing and sales, with tech companies leading the charge. It also showed that most adopters are using the technology to generate text, with 63% of surveyed companies reporting that they do so.

GenAI presents a unique boon for a region as linguistically diverse as Southeast Asia: Aside from writing personalized marketing messages, it can also translate promotional texts into different languages.

For example, Lita Global, an Indonesia-based social media platform for gamers, is benefiting a lot from that. Since integrating OpenAI’s models in the second half of last year, it said, it has been able to host almost twice as many online gaming events monthly, thanks to greater efficiency.

That’s a big boost for its business, since every event can raise weekly revenues by an average of 20%, the company said. 

With genAI, employees can quickly translate announcements about events from English to Southeast Asian languages, such as Vietnamese and Thai, to reach more users in the region. And that frees them up — time originally used for writing, translating and formatting promotional text can now be used for organizing more revenue-generating events, according to Lita Global.

The company also uses genAI in its chat function to recommend responses to users. Lita Global is a social platform where users can hire other gamers to play with them online.

Gamers for hire typically chat with users before an order is placed for a gaming session. But that can be difficult when demand for gamers is high and gamers for hire are busy with other matches. Gamers for hire who use the AI-recommended responses have seen a 10% to 20% uptick in orders, said Lita Global’s CEO Yihao Zhang.

“So we’re using AI to really help them to improve their efficiency, to help them to be more available to the users,” Zhang said.

Another way Southeast Asian MSMEs (micro, small and medium enterprises) can use genAI in marketing is through AI livestreaming. Google’s SEA e-Conomy report noted that live shopping has become more popular in the region. Live shopping, or livestreaming, usually involves a host showcasing the products for sale. Not only does this include clothing try-ons, but shoppers can also ask questions in the comments section, which are answered in real time.

While livestreams are traditionally hosted by humans in studios, MSMEs may lack the funds or technical know-how to execute regular livestreams to boost sales. AI livestreaming can open doors to new opportunities for sellers, said Jensen Wu, CEO of TopviewAI.

TopviewAI says on its website that its AI livestreaming services can cost around $1 per minute. Instead of spending on studio rental, samples of the merchandise and labor of human hosts, companies can have one person monitor the livestream, Wu said. That helps lower costs while boosting sales, making for a “pretty good” return on investment, he added.

The problem of costs

The efficiency boost doesn’t come cheap, however.                             

That’s why small businesses are limited to adopting AI on a small scale for now. Using AI chatbots for relatively simple tasks, for example, can reduce labor costs as subscriptions for such services tend to be inexpensive. On top of that, with a variety of third-party tools available on the market, business owners can also have their pick, according to RMIT Vietnam’s Parida.

Small businesses in the fashion, and food and beverage industries in Vietnam, for example, have begun using chatbots to manage inquiries and orders, Parida said.

“Anything beyond that requires a lot of expense” he said.

While larger companies can hire software companies to develop sophisticated systems customized to a business’ needs, it’s a luxury not many can afford.

Even companies that have the expertise to integrate AI themselves pay a premium to do so.

Lita Global, for example, spends about $2,000 on AI every month, part of which goes to purchasing tokens for OpenAI’s application programming interface (API). APIs allow companies to build upon OpenAI’s models, instead of requiring companies to build the AI model from scratch.

AI can help improve early-life and elderly health care: Danone

However, as AI improves, the cost to use it is expected to drop. Research and advisory firm Gartner predicted in February that by 2027, the average prices of application programming interfaces for genAI will fall to less than 1% of the current average price for the same technology.

That could mean even greater affordability for smaller businesses adopting AI for their businesses.

Outlook for the region

In emerging markets such as those in Southeast Asia where labor costs are low, companies may feel less motivated to boost efficiency through adoption of technology. But technology can provide “much better [outcomes]” for existing business practices, said NUS Business School’s Wirtz. AI is just another way to adopt technology.

He compared it to the popularization of e-hailing services, which reduced the risk of tourists getting scammed by taxi drivers in foreign countries, as e-hailing apps could estimate the price of a journey.

And with a tech-savvy population of entrepreneurs in economies such as Vietnam, where labor costs are low, the excitement to adopt AI remains high, according to Parida.

“It’s a very hungry young people,” he said.

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Uber inks six-year robotaxi deal with Lucid, invests $300 million in EV company

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Uber inks six-year robotaxi deal with Lucid, invests 0 million in EV company

An autonomous robotaxi from Uber’s partnership with Lucid and autonomous vehicle startup, Nuro.

Courtesy: Nick Twork | Lucid

Uber on Thursday announced a partnership to deploy more than 20,000 robotaxis over the next six years as demand for driverless cars kicks into high gear.

As part of the partnership, the ride-hailing company is teaming up with Lucid, the electric vehicle maker, and Nuro, an autonomous vehicle startup. Under the agreement, Uber will invest $300 million in Lucid. Nuro will develop the self-driving technology that Lucid will use to supply Uber with robotaxis over the course of the deal and receive a multi-hundred-million-dollar investment.

Lucid stock popped 30% Thursday. Uber shares were marginally higher.

The companies plan to launch the robotaxis in a major U.S. urban hub next year.

“We’re thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world,” said Uber CEO Dara Khosrowshahi in a statement.

In an interview with CNBC, Lucid interim CEO Marc Winterhoff called the partnership an opportunity for the EV maker to compete in a “completely new” addressable market it has yet to penetrate.

Read more CNBC tech news

Nuro, which is backed by Google and the SoftBank Vision Fund, will provide “level 4 self-driving system” software for the cars. The technology can drive passengers under normal traffic and weather conditions without a human behind the wheel.

The partnership with Lucid and Nuro follows Uber’s alliance with Alphabet-backed Waymo. The two companies expanded their service to Atlanta and Austin, Texas, earlier this year.

Waymo’s vehicles are also considered Level 4, as defined by SAE Levels of Driving Automation. Tesla sells cars today equipped with Autopilot and FSD Supervised systems that fall into the level 2 category, requiring a human at the wheel. Elon Musk‘s EV company debuted a robotaxi pilot test in Austin in June.

Lucid said the 450-mile range for its Gravity vehicles should help cut costs and charge times while improving accessibility. Winterhoff said the program may eventually include future Lucid vehicles currently in development.

“We’ve been chosen because of our EV technology leadership,” he said.

Testing for the first prototype vehicle is underway on a closed circuit at Nuro’s Las Vegas-based proving grounds. In April, the startup raised $106 million in a funding round from T. Rowe Price, Fidelity, Tiger Global and Greylock.

The deal is a “blueprint for a robotaxi program that’s both commercially viable and globally scalable,” Nuro said in a statement to CNBC.

WATCH: Uber has nothing but tailwinds at its back, says Needham’s Bernie McTernan

Uber has nothing but tailwinds at its back, says Needham's Bernie McTernan

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Crypto theft is booming as criminals increasingly turn to physical attacks

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Crypto theft is booming as criminals increasingly turn to physical attacks

Digital currency thefts are on the rise.

Jakub Porzycki | Nurphoto via Getty Images

The value of cryptocurrencies stolen by criminals surged in the first six months of 2025 after a high-profile hack and a wave of physical attacks targeting crypto holders and their relatives.

So far this year, $2.17 billion has been stolen from crypto services — already eclipsing the $1.87 billion of funds stolen from platforms in 2024 — and this is expected to reach $4 billion by the end of 2025, according to a report published Thursday by blockchain analysis firm Chainalysis.

Overall, the combined value of digital tokens stolen from both crypto platforms and individuals hit more than $2.8 billion and is already approaching the $3.4 billion in crypto stolen last year.

The bulk of the funds stolen from services came from February’s cyberattack on Dubai crypto exchange Bybit, which saw North Korea-linked hackers make off with $1.5 billion. It’s estimated to be the largest crypto heist in history.

However, the rise in stolen crypto assets was also driven by a spike in attacks on individual crypto wallets. Personal wallets accounted for over 23% of total thefts, with attackers increasingly turning to physical violence and coercion to access funds, Chainalysis said.

In January, David Balland, a co-founder of crypto wallet firm Ledger, was kidnapped with his wife from their home in central France. Before they were freed, the attackers cut off Balland’s finger and sent footage of it to his fellow co-founder Eric Larcheveque demanding ransom money.

Separately, in May, the father of a crypto entrepreneur was taken in broad daylight by four men wearing ski masks. The kidnappers demanded a ransom of several million euros and cut off one of the man’s fingers. He was freed by police days later.

Eric Jardine, cybercrimes research lead at Chainalysis, told CNBC that the rise in crypto-related thefts was primarily being driven by increasing crypto adoption and price appreciation.

“Adoption means there are more services and users in the crypto ecosystem, making thefts more common. Price appreciation means that services and individuals in crypto have more USD value to lose, even if the total assets stolen are relatively constant over time,” Jardine said via email.

Read more CNBC tech news

Jardine suggested that the uptick in attacks on individual crypto holders could relate to the fact that crypto trading services are beefing up their security.

“If services become better at security, malicious actors will potentially move to targeting individual wallet holders and trade off a single large-scale heist in favor of a large number of smaller-scale victimizations,” he said.

Meanwhile, rising wealth accumulated through holdings of cryptocurrencies like bitcoin has resulted in a rise in crypto influencers flaunting their lifestyle on social media platforms.

Jardine stressed it was important not to blame the victims of physical crypto-related attacks, adding that “showy displays of wealth can quite obviously attract the attention of a bad actor when compared to a more modest outward facing lifestyle.”

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Crypto accumulator DeFi Development to expand globally by franchising its Solana treasury model

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Crypto accumulator DeFi Development to expand globally by franchising its Solana treasury model

Omar Marques | Sopa Images | Lightrocket | Getty Images

DeFi Development, a company vying to be the MicroStrategy of Solana, is expanding internationally through a franchise model.

The company plans to partner with others looking to operate their own Solana treasuries with DeFi’s support. In return, DeFi Development will retain an equity stake in each regional vehicle. The initiative will be branded DFDV Treasury Accelerator.

“Most crypto treasury vehicles today are following the MicroStrategy model. What excites us about DFDV is that they’re not just copying the playbook. They’re evolving it,” said Cosmo Jiang, general partner at investor Pantera Capital. “By combining validator infrastructure, capital markets innovation, and now international expansion via a global franchising model, DFDV is building something structurally different and ahead of the curve.”

Pantera was also an anchor investor in Bitmine Immersion Technologies, an ether treasury firm backed by Peter Thiel and chaired by Fundstrat’s Tom Lee. Kraken, Arrington, RK Capital and Borderless Capital may also support the franchise initiative through a potential investment and treasury and fundraising guidance, as well as infrastructure – which could include validator and custody solutions.

The move comes amid an explosion in companies pursuing crypto treasury strategies or merging with public entities to be able to emulate MicroStrategy’s success investing in bitcoin. In addition to Bitmine, the publicly listed betting platform SharpLink Gaming in May initiated an ether treasury strategy and appointed Ethereum co-founder Joseph Lubin as chairman of its board. Bit Digital recently exited bitcoin mining to focus on its ETH treasury and staking plans.

Solana is a five-year-old public blockchain platform that promises to provide fast transaction speeds as well as low fees for developers and users. Solana’s value is up 7% over the past year, with a nearly 10% gain within the past month, according to Coin Metrics.

In addition to accumulating Solana tokens, the company will acquire validators (the computers that help run the Solana network by verifying transactions) that can be used to “stake” the tokens. Through staking, users earn rewards for locking up SOL tokens on the network.

DeFi Development this week introduced its first SOL per share guidance, saying it plans to reach 1 SOL per share by 2028. With 857,749 SOL held currently and 18.8 million shares outstanding, its SOL per share stands at 0.0457, it said.

Don’t miss these cryptocurrency insights from CNBC Pro:

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