Southeast Asia’s (SEA) startup landscape has long been characterised by its robustness and potential for growth. With Singapore home to 20 unicorns and close to 300 startups anticipated to go public in Southeast Asia by 2030, the region’s entrepreneurial success is evident.
Yet, the reality is that startups today face a much more challenging landscape than ever before, with tech startups facing a continued drop in funding as one example in addition to a heightened need for startups’ effective adoption of emerging technologies to maintain competitiveness.
As a critical gateway to AI — from Generative AI to discriminative AI applications to deliver intelligent and incisive insights — the cloud remains a vital part of the puzzle for startups retaining their edge amid a dry funding landscape and saturated business environment.
Moreover, the scarcity of specialised tech talent, especially with AI evolving at such a rapid pace, makes it an urgent priority for startups to glean benefits from the cloud in enabling more efficient and advanced processes and, therefore, a faster go-to-market time for their solutions.
More AI, but where’s the talent?
AI, serving as a paramount catalyst for innovation with its potential to revolutionise industries and economies, has seen a ravenous appetite in SEA — with large corporations alongside startups across various industries embracing it in their workflows.
In fact, projections indicate that AI could inject a US$1 trillion boost to the SEA economy by 2030. With that, countries in the region are proactively integrating AI into pivotal sectors such as government, healthcare, and transportation.
Among these, startups emerge as prime beneficiaries of AI integration into their operations. By leveraging AI-driven solutions, employees can be liberated from repetitive tasks, streamline business processes, and cut labour costs, ultimately enhancing productivity. This transformative technology has reshaped business operations, enabling accomplishing more with fewer resources and at an accelerated pace.
Yet, the primary challenge confronting startups lies in acquiring the right talent to propel their growth in the AI domain. Despite recent tech industry layoffs yielding a pool of skilled workers, the demand for talent remains unmet.
Startups, in particular, face the daunting task of attracting top-tier talent while grappling with limited resources. Although unable to match the compensation packages of larger corporations, startups still necessitate talent of comparable, if not superior, calibre.
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Moreover, alongside talent acquisition hurdles, the absence of mentorship and adequate support systems poses another significant obstacle for startups striving to scale and succeed. Mentorship not only fosters organisational value but also plays a pivotal role in talent retention, with research indicating that 43 per cent of professionals view access to mentoring as crucial for remaining with an organisation.
The value of cloud
For startups embarking on the implementation of AI solutions, the cloud emerges as an indispensable ally. As the paths of cloud and AI development converge, the cloud assumes a pivotal role in facilitating the efficient and scalable deployment of AI technologies.
By harnessing the cloud, startups can unlock access to a wealth of AI tools and resources. Cloud platforms offer ready-made AI solutions and managed services, empowering startups to seamlessly develop and deploy AI applications.
Through the utilisation of these cloud-based AI tools, startups are empowered to scale their operations efficiently, adapt to market changes swiftly, and maintain agility in an increasingly competitive landscape — without necessitating extensive in-house expertise. This dual benefit reduces the dependency on specialised AI talent while accelerating innovation.
At the same time, the cloud facilitates startups in tapping into talent pools beyond their local boundaries. This is particularly advantageous for countries like Singapore with limited AI talent, as they can leverage cloud-based collaboration tools to connect with a rich talent pool in countries like India.
This diverse talent pool brings varied perspectives and expertise to the development process, thereby augmenting the quality of AI solutions. Furthermore, cloud-based collaboration tools can streamline communication and project management across dispersed teams, enabling startups to fully leverage remote talent.
With unparalleled benefits, the cloud enhances efficiency, agility, and cost-effectiveness and optimises resources – accommodating hybrid working patterns that persist even in today’s post-pandemic era. After all, by leveraging the cloud to access talent beyond their immediate vicinity, startups can effectively address the AI talent gap and expedite their AI initiatives with a skilled and diverse workforce.
Considerations for a sustainable, data sovereign AI-driven future
Indeed, AI serves as a catalyst for innovation; however, businesses must adopt a sustainable and holistic approach to fully capitalise on its potential. More than ever before, sustainability has emerged as a non-negotiable aspect that must be integrated into business operations, even for startups. The undeniable reality persists: data centres contribute significantly to global carbon emissions, accounting for as much as five per cent.
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Now, with 73 per cent of AI workloads predicted to shift to the cloud by 2026, energy demands are set to soar due to the substantial increase in data generated and a surge in demand for computing power. Yet, it remains critical to note the role of data centres in supporting the region’s digital growth, especially as businesses increasingly leverage emerging technologies that are computationally intensive.
On the flip side, as global connectivity continues to intensify, the widespread transfer of personal data across borders becomes more prevalent. While countries like Indonesia have implemented their own data protection laws, necessitating businesses to adopt localised approaches to data storage and processing for compliance amid multi-country operations, jurisdictions with well-established privacy regulations, like Australia, continue to amend their laws to align closely with European privacy standards.
The complexities of data laws across regions often leave companies struggling with regulatory discrepancies, complicating compliance endeavours and hindering local customers from maximising the benefits of cloud services.
Choosing the right cloud provider
Startups aiming for success in their AI endeavours should prioritise cloud providers based on the alignment of their programmes with the specific needs and goals of participating startups. It is crucial for startups to meticulously assess and compare various programmes to ensure they select one that offers a comprehensive blend of resources, support, and opportunities tailored to aid their AI initiatives.
The ideal startup programme should not only grant exclusive technological access but also provide mentorship and support. This ensures that startups receive close technical guidance and access to specialised knowledge necessary to fully leverage tools like the cloud.
At the same time, startups should prioritise selecting cloud vendors that integrate sustainability across all aspects of their business ecosystem. Opting for cloud providers with greener data centres, which balance power and scalability while mitigating the environmental impact of emerging technologies, is essential.
Furthermore, cloud providers should offer businesses enhanced support through local computing and storage capabilities to meet evolving data compliance needs. This provides immunity to extra-territorial regulations, ensuring compliance with local data regulations. In today’s dynamic regulatory landscape, such measures enable businesses to align their data storage and usage practices with compliance standards, mitigating the risk of infringements and substantial fines.
Ultimately, while AI presents boundless opportunities for innovation and growth, its realisation hinges on a sustainable, collaborative, and inclusive approach. Particularly in today’s volatile job market, the integration of AI becomes increasingly critical for startups.
Thus, startups aiming to thrive digitally must prioritise building a robust and adaptable infrastructure. This not only enables smooth AI integration but also fosters collaboration and inclusivity across every aspect of their operations.
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via The Novum Times
The Novum Times 