IT infrastructure services provider Kyndryl, which was spun off from IBM, has opened its ASEAN AI Innovation Lab in Singapore.

Announced on June 24, 2025, the facility will employ around 50 AI professionals to support AI adoption and business growth in Southeast Asia.

The lab will focus on responsible AI solutions that include advanced security features.

It will offer advisory services through Kyndryl Consult and co-creation opportunities via Kyndryl Vital, helping businesses tackle complex challenges.

In partnership with Google Cloud and Digital Industry Singapore (DISG), the lab will assist Singapore-based companies through the AI Cloud Takeoff program, part of DISG’s Enterprise Compute Initiative.

Google Cloud will provide tools such as Vertex AI and BigQuery to facilitate AI development.

🔗 Source: Kyndryl

🧠 Food for thought

1️⃣ Southeast Asia emerges as a strategic AI investment hub despite substantial gaps

Kyndryl’s new ASEAN AI Innovation Lab in Singapore represents part of a broader regional trend, where major tech companies are establishing AI centers despite significant investment gaps.

The AI opportunity in Southeast Asia is estimated at $60 billion, yet actual investment currently stands at only $1.7 billion, indicating substantial untapped potential 1.

This investment asymmetry explains why companies like Kyndryl are strategically positioning themselves in Singapore, a country with strong digital infrastructure that serves as a gateway to the broader ASEAN market of 670 million people.

AI labs and innovation centers from global tech firms are appearing across the region, with government initiatives providing incentives through programs like Singapore’s Enterprise Compute Initiative mentioned in the announcement.

The lab’s focus on responsible AI with advanced security features addresses a critical need, as Southeast Asian markets face unique regulatory environments across multiple countries requiring specialized compliance frameworks.

2️⃣ A persistent AI readiness gap threatens to limit innovation benefits

Kyndryl’s People Readiness Report reveals a striking disconnect: while 95% of businesses have invested in AI, 71% of leaders acknowledge their workforces aren’t ready to leverage the technology effectively.