Artificial intelligence (AI) is rapidly transforming industries worldwide, and Cambodia is poised to harness its potential. As the global economy continues to adopt AI-driven innovations, Cambodia’s leaders are recognizing the opportunity to leapfrog into the digital era.
The country is taking significant steps toward creating a robust AI strategy that could enhance its economic landscape. With neighboring countries like Vietnam and Thailand reaping the benefits of AI integration, Cambodia aims to follow suit by tapping into the technology to foster growth, improve public services, and develop its infrastructure. By aligning AI initiatives with its broader national policies, Cambodia hopes to boost its competitiveness within the region and on the international stage.
Bordering on Success
Cambodia’s neighboring countries have made significant strides in AI integration. According to OpenGov Asia, Vietnam’s AI market, which was valued at $470 million in 2022, is projected to reach $1.52 billion by 2030, with an annual growth rate of 15.8%.
Interestingly for Cambodia, Vietnam’s startup ecosystem is embracing AI. At Qualcomm Vietnam Innovation Challenge 2024, for instance, 70% of the innovative solutions exhibited integrated AI across categories ranging from healthcare to smart cities. The Vietnam Innovation & Tech Investment Report 2024, meanwhile,highlighted that startups are attracting venture capital investments of between $8 million and $15 million per project, and that the number of AI startups in the country had surged from 60 in 2021 to 278 in 2024.
In Thailand, the Bangkok Post reports that the national generative AI market is projected to expand from $180 million in 2024 to a staggering $1.77 billion by 2030 at an impressive annual growth rate of 46.5%. Recognizing AI’s potential, the Thai government is integrating AI into strategic sectors such as industry, services, and agriculture under the Thailand 4.0 initiative.
Thailand is also attracting significant investment from global tech companies in their AI infrastructure. According to Reuters, Google announced a $1 billion investment to establish a data center and cloud region in the country, aiming to meet the increasing demand for cloud services and support AI adoption in Southeast Asia, with the investment expected to generate approximately 14,000 jobs annually until 2029.
Cambodia will be watching how AI is notably being integrated into the manufacturing and construction industries. Companies like Siam Cement Group, for example, are utilizing AI to predict equipment failures before they occur, helping to minimize downtime and reduce costs incurred from maintenance.
According to the “Racing Toward the Future: Artificial Intelligence in Southeast Asia” study by Kearney, a global management consultancy firm, AI has the potential to significantly boost Southeast Asia’s economy, with projections estimating a 10% to 18% increase in GDP by 2030. This would equate to a rise of nearly $1 trillion in the region’s economic output.
Leaning into AI
The strategic focus on AI in Cambodia reflects a commitment to embracing technological advancements for national development. By learning from neighboring countries’ experiences and investing in AI infrastructure, policy frameworks, and public-private partnerships, Cambodia aims to harness AI’s potential to enhance public services, boost economic growth, and improve the quality of life for its citizens.
Phnom Penh’s focus on the potential of AI was evident in December 2024, as a workshop held in the capital brought together experts and officials from 12 countries to explore AI’s role in transforming public services. The event focused on AI-driven government innovation, strategic deployment, and using AI and big data for risk assessment, highlighting the potential for future integration in public sectors.
The Ministry of Posts and Telecommunications is also working with international experts to develop a framework for advancing AI and digital infrastructure in Cambodia. Speaking at the Cambodia Artificial Intelligence Forum 2024, also held in the capital, Minister Chea Vandeth highlighted the potential of AI in reshaping the economy, with the government aiming to create a national AI strategy in line with the Policy Framework of Digital Economy and Society 2021-2035 and the Digital Government Policy 2022-2035.
Cambodia’s focus on AI adoption has the potential to mirror the successes of its regional neighbors. By embracing AI, Cambodia can modernize its industries, improve resource management, and increase productivity, particularly in sectors like agriculture, manufacturing, and public services. For instance, in agriculture, AI-driven technologies such as precision farming and predictive analytics could enhance crop yields and reduce resource waste, improving food security and the livelihoods of farmers. In manufacturing, AI tools could help optimize production processes, increase efficiency, and reduce costs, much like the benefits seen in Thailand’s and Vietnam’s industrial sectors.
With a clear commitment from both the public and private sectors, Cambodia has the potential to make significant strides in AI adoption, positioning itself as a competitive player in Southeast Asia’s digital economy.
