Asia is rapidly advancing its position in the global artificial intelligence (AI) landscape, leveraging its extensive industrial base, large digital populations, and coordinated policy frameworks to move from following established players to taking a leadership role. This trend was highlighted during the 2026 Boao Forum for Asia (BFA) Annual Conference held last month in Hainan province, China.
According to the Asian Economic Outlook and Integration Progress Annual Report 2026 released at the forum, the epicenter of AI innovation is shifting from Europe and the United States toward Asia. Regional economies are capitalizing on their diverse application environments and growing digital economies to climb higher on the AI innovation ladder. The region’s digital economy reached $27 trillion in 2025, representing 46 percent of Asia’s GDP, with China projected to surpass 80 trillion yuan ($11.72 trillion) by 2030.
A decade after the introduction of the “AI+” concept at the BFA by Zhang Yaqin, a leading AI academician and dean at Tsinghua University, the initiative has evolved into a core element of China’s national strategy on AI. This year’s Government Work Report introduced the concept of the “intelligent economy,” underscoring AI’s deeper integration across industries. Zhang emphasized the transition within AI development, highlighting three major trends: the emergence of agentic AI capable of autonomous goal achievement, the expansion from information intelligence to incorporate physical and biological dimensions, and the intensification of AI fusion with existing technologies and cognitive frameworks.
The broader Asian region is also witnessing significant AI adoption, particularly among small and medium-sized enterprises (SMEs), which accounted for 28 percent of global AI unicorns in 2025. Approximately 55 percent of AI-related cases filed with the International Telecommunication Union over the last two years originated in Asia, primarily in healthcare, education, and public services. Yu Xiaohui, head of the China Academy of Information and Communications Technology (CAICT), noted growing demand for AI technologies across ASEAN and other Asian countries, highlighting China’s open-source models as foundational for localized AI development.
In commercial sectors, AI applications are already transforming operations. Smartphone manufacturers project that AI-powered devices will increasingly act as adaptable digital assistants, enhancing user interaction. E-commerce companies, like JD.com, are integrating AI into logistics, customer service, and inventory management to sustain competitiveness in a complex market. Meanwhile, healthcare is experiencing notable AI-driven innovations, including early disease diagnosis at molecular and genetic levels, improved medical imaging that surpasses traditional diagnostics, and AI-supported enhancement of primary care services.
At the policy level, China’s 15th Five-Year Plan (2026-2030) calls for the full-scale rollout of the “AI+” initiative to empower various industries, accelerate adoption of next-generation smart terminals and AI agents, and foster new AI-native business formats.
Despite the optimistic outlook, concerns regarding AI’s social and ethical implications were a prominent theme at the forum. Jenny Shipley, former prime minister of New Zealand, cautioned that AI could exacerbate job displacement, widen digital divides, and raise privacy and ethical challenges. Yu from CAICT stressed the need for stronger safety measures as mainstream AI models currently face significant safety issues.
Jiang Xiaojuan, former deputy secretary-general of China’s State Council, advocated for balancing AI promotion with social acceptability and public participation in governance. Concrete measures recommended include clear labeling of AI-generated content, traceability of AI agents to responsible entities, and restrictions on autonomous replication of AI systems. Zhang Yaqin noted the rapid increase of AI-generated online content, which risks creating feedback loops that degrade model quality.
Globally, there is a growing consensus on AI governance among major economies. Sam Daws of the Oxford Martin AI Governance Initiative observed alignment in legislation concerning AI system testing, deployment safety, and performance monitoring, with regional cooperation efforts such as ASEAN’s AI safety network and UN mechanisms contributing to multilateral governance.
The human dimension of AI development was a focal point during the forum’s discussions. Jiang Xiaojuan urged caution against using AI solely to replace labor without improving quality and sustainability, emphasizing the importance of employment for social stability. Experts highlighted that AI is now affecting not only manual but also cognitive work, necessitating strengthened social security policies for transitioning workers.
Business leaders uniformly stressed the importance of AI literacy and adaptive skills. The ability to work effectively with AI tools and critically assess AI outputs is becoming essential in the labor market. As routine tasks become automated, industries value experience and the capacity to collaborate with AI systems, especially through skills such as prompt engineering.
The overarching implication is that future competition will revolve around human-AI collaboration rather than human-to-human contests alone. As AI technology advances, the central question remains whether societies can manage this transformation to keep it people-centered, ensuring equitable and sustainable benefits for all.