Policy dialogue highlights pathways to responsible AI and digital trade governance

On 3 December, Cambridge Industrial Innovation Policy (CIIP) hosted a policy dialogue at King’s College London, exploring how public perceptions of risk can guide more inclusive and trusted digital governance across Southeast Asia. The event brought together researchers, policymakers, and practitioners to discuss findings from two new policy briefs on AI and digital risks and governance in the region.

Southeast Asia is undergoing rapid digital transformation. AI and digital technologies offer major opportunities for economic growth, innovation, and regional integration, but they also present new risks related to data governance, trust, and inequality. Two new policy briefs draw on insights from the Lloyd’s Register Foundation World Risk Poll, linking public perceptions to policy responses and providing a roadmap for navigating these challenges.

Setting the scene: Public perceptions of AI risk

Zoi Roupakia, Policy Affiliate at Cambridge Industrial Innovation Policy, presented key findings from the policy brief AI risks and governance in Southeast Asia. She highlighted the region’s enormous economic potential from AI, estimated at up to $950 billion in added GDP by 2030, but contrasted this with widespread public caution. Only a third of people in Southeast Asia believe AI will mostly benefit society, with optimism particularly low among women in countries where digital inclusion is limited. Concerns about data theft and security are linked to lower trust in AI.

Zoi emphasised a central finding of the brief: that countries with stronger AI governance frameworks and greater implementation capacity show higher levels of public optimism about AI. This points to the importance of credible governance and institutional capacity for building public confidence in AI systems. While many Southeast Asian countries have AI governance frameworks, implementation remains uneven and often voluntary. The brief calls for strengthening inclusive, context-sensitive AI and data governance through targeted capacity-building, binding safeguards for high-risk uses, aligned data protection standards, regional cooperation, and attention to environmental impacts, to build public trust.

Rising digital risks and the future of trade policy

Dr Karishma Banga, Lecturer in Digital Economy at King’s College London, presented findings from the brief Rising risks and digital trade policy in Southeast Asia, showing how public concerns about data privacy and security shape digital trade policy. With 86% of people in the region worried about data theft, and similar fears about government data misuse, these perceptions influence how countries negotiate e-commerce, consumer protection, and data governance provisions.

Karishma highlighted a positive correlation between higher digital risks (related to AI and data), and digital services trade restrictiveness in developed countries. However, the same relationship is not observed in developing countries, potentially due to lower regulatory and enforcement capacity, prioritisation of economic integration over data privacy and security, and weaker digital advocacy groups. She emphasised the need for risk-based approaches to digital trade, greater cooperation on AI standards, and stronger regional dialogue to build trust in digital ecosystems.

Panel reflections: Cooperation, policy space, and public trust

In the panel discussion that followed, speakers reflected on the governance implications of AI and digital trade across the region. Panellists included Anisa Farida, Counsellor, Indonesian Mission to the United Nations and World Trade Organisation, Dr Chris Foster, Senior Lecturer, Global Development Institute, University of Manchester, Rajiv Nair, Governance Adviser, Commonwealth Secretariat, and Dr Becky Faith, Research Fellow, Digital and Technology Cluster, Institute for Development Studies. 

Anisa Farida emphasised the importance of addressing fragmentation while supporting policy autonomy:

“Fragmentation in digital policies and data regulation is unavoidable, globally and within Southeast Asia, so it’s important to manage them in ways that preserve domestic policy space while enabling greater interoperability. ASEAN has a unique opportunity to work with dialogue partners to reduce harmful fragmentation and build more coherent regional frameworks. Achieving this balance, between policy coherence and the realities of the digital divide within and among member states, is essential for developing an integrated, resilient, and inclusive digital ecosystem.”

Dr Chris Foster highlighted how digital trade agreements already shape the space countries have to regulate AI:

“Digital trade agreements really matter because they shape how data can be used and what kinds of rules countries can put in place. As AI develops, it’s important that countries have enough policy space to support local innovation and ensure AI is developed and used in ways that benefit their economies.”

Discussions also touched on AI transparency, data governance, gender inclusion, and new models of regional cooperation. Across the panel, there was agreement that public perceptions play a crucial role in shaping trusted digital systems, and that governance frameworks must evolve alongside rapid technological change.

About the project

The event forms part of the project Policymaking for a more resilient world: leveraging the World Risk Poll for more effective digital, labour, and industrial policies, funded by Lloyd’s Register Foundation. Led by Cambridge Industrial Innovation Policy (IfM Engage), the project explores how public perceptions of risk can inform policymaking, with a particular focus on Southeast Asia.

Four policy briefs have been published, covering AI, digital trade, labour and industrial policy. Each brief is accompanied by accessible explainer videos and infographics, and the findings are being shared with policymakers and regional stakeholders through in-person and online workshops. The project runs from September 2024 to December 2025 as part of Lloyd’s Register Foundation’s ‘World Risk Poll into action’ programme.

Read more: Insights on AI and digital trade

Read more: Insights on labour and industrial policy