- ASEAN GenAI sector funding projected to grow 50% in 2025
- Singapore leads in startups, but Vietnam is gaining ground
- B2B models dominate the GenAI landscape
AI Cash Infusion on the Horizon
GenAI Fund’s latest report projects a 50% year-over-year increase in funding for ASEAN’s generative artificial intelligence (GenAI) sector come 2025. This growth surge is expected to ride on increasing venture capital confidence, enterprise Corporate Venture Capital arms’ emergence, and a rise in mergers and acquisitions.
Singapore Leads, Vietnam Gains Ground
Currently, Singapore hosts 44% of ASEAN’s GenAI startups, Vietnam follows 27%, and Indonesia 13%. However, the landscape is set to shift in the next 18 months, Vietnam is poised to become a popular outsourcing destination, thanks to its technical talent and cost-effectiveness.
B2B Takes Center Stage
A staggering 92% of ASEAN GenAI startups are focusing on B2B or B2B2C models, marking a significant pivot from the region’s previously B2C-centric approach.
Top sectors include productivity and business solutions (26%), healthcare and wellness (13%), and financial services (13%).
