TLDR: Leading venture capital firm East Ventures projects that by 2027, half of all businesses will have commenced implementing Generative AI (GenAI), a significant leap from an anticipated 25% adoption by 2025. This rapid integration is expected to drive substantial efficiency gains and unlock new growth avenues, with AI poised to boost Southeast Asia’s GDP by 10-18% by 2030, despite the region’s current nascent stage in global AI investment.
Jakarta, July 16, 2025 – East Ventures, a prominent venture capital firm, has released a white paper titled ‘AI-first: Decoding Southeast Asia trends,’ predicting a significant surge in Generative AI (GenAI) adoption across businesses globally. The firm anticipates that by 2025, approximately 25% of businesses will have begun implementing GenAI, with this figure projected to double to 50% by 2027. This rapid integration is driven by groundbreaking innovations that empower companies to enhance efficiency, streamline operations, and unlock novel growth opportunities.
The white paper highlights the transformative potential of AI in Southeast Asia (SEA), forecasting a substantial 10% to 18% uplift in the region’s Gross Domestic Product (GDP) by 2030. Despite this promising outlook, East Ventures notes that SEA currently accounts for a relatively small share of global AI investment. However, the firm identifies strong growth potential in downstream applications, particularly in the deployment of GenAI solutions across key sectors.
East Ventures reaffirms its robust investment conviction in artificial intelligence, positioning AI-first startups as a core focus area for 2025. The firm emphasizes the critical need for businesses to adapt and adopt AI technologies to maintain relevance and competitiveness in an increasingly dynamic market landscape. East Ventures has observed a robust pipeline of startups and its own portfolio companies actively leveraging existing foundation models to build ready-to-use solutions.
Willson Cuaca, Co-Founder and Managing Partner at East Ventures, underscored the firm’s philosophy, stating, ‘We believe innovation should be accessible to all. The rise of GenAI is lowering barriers for founders from diverse backgrounds to create meaningful impacts.’ He further advised, ‘AI should not be adopted just to follow the hype, but it should be leveraged to build more intuitive, efficient, and scalable solutions.’ Cuaca also pointed out Southeast Asia’s unique strength in the global AI race: ‘Every region has its own strength in AI race, and we believe that Southeast Asia’s strength lies in its ability to adapt and apply ready-to-use AI models effectively within local contexts.’
The white paper also delves into specific sector impacts within SEA. In manufacturing, AI automation is projected to increase production efficiency by approximately 22% and reduce equipment downtime by around 17% in 2024. The retail and consumer sectors are expected to see a roughly 30% uplift in conversion rates on retail channels, powered by AI-driven recommendation engines that boost customer engagement. Furthermore, the integration of AI in banking and legal services in 2024 has reportedly cut processing times by about 24% and boosted operational efficiency by approximately 18%.
Also Read:
- Southeast Asia’s AI Investment Landscape: Growth, Challenges, and Emerging Opportunities
- Generative AI Momentum Defies Economic Headwinds, Driving Significant Business Investment and Transformation
These projections align with broader industry trends. Deloitte, in its own predictions, similarly anticipates that 25% of companies using GenAI will launch agentic AI pilots or proofs of concept in 2025, growing to 50% by 2027, indicating a widespread industry consensus on the accelerating pace of AI integration.
