Southeast Asian Startups Embrace AI Growth Even as Global Bubble Fears Rise
Concerns about a potential artificial intelligence bubble continue to circulate in global markets, yet across Southeast Asia, many tech founders see the situation very differently. Instead of preparing for a downturn, entrepreneurs from Singapore to Malaysia are doubling down on AI development, arguing that even if a global correction arrives, it could ultimately be beneficial for the region.
One such voice is Dylan Tan, founder of the Singapore based start up replyr.ai, which builds AI powered WhatsApp sales agents for companies looking to automate customer engagement. Tan believes that the excitement surrounding AI in global markets has created a gap between investor expectations and the real world capabilities of the technology. While capital has poured into AI companies at an extraordinary pace, he feels many investors still lack a proper understanding of how AI will shape the day to day future of business operations.
Replyr.ai was launched in 2023 with support from venture capital funds, entering the market at a time when AI hype was at its peak. Tan remembers seeing new ventures promoted as AI powered even when the technology behind them had little to do with real artificial intelligence. To him, this was a sign that the market had become crowded with inflated claims and unsustainable excitement. As he explained in an interview, the region could actually benefit from a global correction because it would separate serious companies from those riding the wave without real innovation.
Tan believes that a correction would filter out businesses that rely solely on trends rather than genuine problem solving. In his view, companies that offer true technological value will survive and even thrive once market noise disappears. For Southeast Asian founders, this could create clearer opportunities to build long term solutions without having to compete with a flood of superficial AI branding.
Across the region, entrepreneurs are continuing to invest heavily in AI applications for logistics, digital commerce, finance, marketing and customer support. Many see Southeast Asia’s fast growing digital economy as fertile ground for solutions that target high volume consumer markets. Start ups are experimenting with natural language tools, automated service systems, predictive analytics and AI enabled retail operations, hoping to lead local transformations in business productivity.
Even as global analysts warn that the AI bubble could burst, regional founders appear confident in their strategy. They argue that the fundamental need for AI powered tools will remain strong regardless of market cycles. Companies that build useful products will still find demand, and Southeast Asia’s diverse markets give them room to expand gradually and sustainably.
The sentiment among these entrepreneurs is that a global reset would not mark the end of AI innovation but rather the beginning of a more grounded era. For them, the focus is not on chasing hype but on developing tools that directly improve how people work, shop and communicate. Whether the global AI market cools or continues to surge, Southeast Asian firms seem determined to stay on their current path.
