Regional AI blocs emerge as faster path than global consensus

Southeast Asian countries face electoral integrity crises from AI-driven deepfakes influencing elections.
Imperfect governance that actually moves beats perfect governance that never happens
On why regional coalitions offer a faster path to binding AI rules than waiting for global consensus.
Mark

Why does it matter that regional coalitions are moving faster than global processes? Isn't slower deliberation sometimes better?

Mimi

Speed matters because AI capabilities are advancing faster than policy can keep up. If you wait five years for global consensus, the technology you're trying to regulate has already changed fundamentally. Regional groups can act on immediate threats—like Southeast Asia did with deepfakes in elections.

Luke

But we should be clear about what "binding" actually means here. The Singapore-Australia agreement ties AI governance to trade access, which is real leverage. That's different from ASEAN's Digital Economy Framework, which is a treaty-level agreement but still depends on member states actually enforcing it. How much teeth does it actually have?

Mimi

Fair point. The trade mechanism is more enforceable because there's an economic consequence for non-compliance. But the ASEAN framework is still more binding than the global AI Safety Summits, which have only produced non-binding communiqués.

Mark

So the argument is that regional is better than global, but we don't yet know if regional is actually good enough?

Mimi

Exactly. It's a realistic third path, not a perfect solution. The EU AI Act shows comprehensive regional regulation is possible. But whether ASEAN or other regional bodies can enforce their rules consistently—that's still being tested.

Luke

And there's the fragmentation problem. If ASEAN has one set of AI standards and the EU has another and some other bloc has a third, companies have to navigate multiple compliance regimes. That's a real cost.

Mark

Does that fragmentation risk outweigh the benefit of faster action?

Mimi

The source suggests cross-regional harmonization—shared technical benchmarks—could bridge that gap. It's not perfect, but it's better than the current situation where there's almost no binding governance at all.

Luke

The nuclear weapons comparison is interesting but maybe overstated. With nukes, you had a clear existential threat that focused minds. With AI, the risks are real but diffuse—electoral integrity, labor displacement, bias. Different regions care about different ones.

Mark

Which means regional governance actually fits the problem better than global governance would?

Mimi

That's the core argument. Global frameworks are too broad to meaningfully address specific regional risks. Southeast Asia's deepfake crisis is different from Europe's labor concerns, which is different from what matters most in the Pacific Islands.

  • US-China superpower rivalry has effectively paralysed global AI rulemaking, leaving a dangerous regulatory vacuum as the technology accelerates.
  • Southeast Asian democracies are already feeling the consequences — Indonesia, Malaysia, and the Philippines each banned an AI tool weaponised to manufacture election deepfakes.
  • Regional blocs are moving to fill the void, with ASEAN's Digital Economy Framework Agreement embedding AI governance into treaty law and trade access conditions that actually compel compliance.
  • The Singapore-Australia Digital Economy Agreement offers a working template: AI rules tied to free trade frameworks, making governance a condition of market entry rather than a polite aspiration.
  • The emerging risk is a fragmented world of incompatible regional standards, creating compliance burdens for companies and demanding cross-regional harmonisation through shared technical benchmarks.
  • The window to shape AI governance remains open, but the calculus is shifting — imperfect rules that move may now matter more than perfect rules that never arrive.

As the rivalry between Washington and Beijing freezes global consensus on artificial intelligence, smaller coalitions of nations are discovering that shared geography and shared stakes can accomplish what universal agreement cannot. Regional bodies like ASEAN and the Pacific Islands Forum are converting local urgencies — deepfakes distorting elections, data flows crossing borders without rules — into binding treaty-level commitments, moving at the speed the technology demands. This is not a failure of global ambition so much as a recognition of an older truth: governance, like trust, tends to grow outward from the particular before it reaches the universal.

The world's governments are confronting a problem the United Nations has long understood: universal agreement is nearly impossible. With artificial intelligence, that impossibility has become urgent. The United States is building security-vetted networks of allied nations, controlling access to the chips and data that power advanced AI. China is advancing its own state-directed vision through bodies like the World AI Cooperation Organisation. The result is a patchwork of regulations that don't speak to each other, leaving companies confused and genuine risks unaddressed.

The gap between AI's pace of change and government's pace of response has grown impossible to ignore. Proposals for a coalition of democracies to steer AI development run into a practical obstacle: in 2026, defining what counts as a democracy is harder than it sounds. Where do Turkey, India, or the many nations that fit neither superpower camp belong?

Regional coalitions are emerging as a faster, more workable answer. The European Union's AI Act demonstrated that a smaller group of aligned countries can write comprehensive, enforceable law in years — something the global community has failed to do. ASEAN and the Pacific Islands Forum are building on that lesson, developing binding frameworks without waiting for worldwide consensus.

Trade is the sharpest instrument available to regional blocs. The Singapore-Australia Digital Economy Agreement already treats AI as a formal area of cooperation with binding rules on data flows, embedded within a free trade framework. That structure could extend across larger agreements like the CPTPP. When compliance becomes a condition of market access rather than a voluntary commitment, it gets enforced.

Southeast Asia faces a crisis that global frameworks are too broad to address: AI-generated deepfakes are distorting elections. The shared threat created shared urgency, and ASEAN is now converting that urgency into its Digital Economy Framework Agreement — a treaty-level accord with real enforcement mechanisms. Regional governance works precisely because it targets the specific threats that matter most in a given part of the world.

The principal risk ahead is fragmentation. Incompatible standards across regional blocs could create compliance nightmares for companies operating globally, making cross-regional harmonisation through shared technical benchmarks essential. Regional coalitions will not dissolve the US-China competition to shape AI's future, but they offer a third path — a way for countries to write their own rules without choosing sides between superpowers. With the window to get this right still open, speed may matter more than perfection.

The world's governments are learning what the United Nations learned decades ago: getting everyone to agree on anything is nearly impossible. With artificial intelligence, that problem has become urgent. The United States is building what it calls trusted networks of allied nations, locking AI development and the chips that power it within a circle of security-vetted partners. China, meanwhile, is promoting its own vision of AI governance through state-directed frameworks like the World AI Cooperation Organisation. Meanwhile, countries like Australia are setting up their own AI offices and writing their own rules. The result is a patchwork of regulations that don't talk to each other, creating confusion for companies trying to operate across borders and leaving genuine risks unaddressed.

The gap between how fast AI is changing and how slowly governments typically move has become impossible to ignore. Dario Amodei, co-founder of Anthropic, has argued for a coalition of democracies to steer AI development according to shared values, including controlling which countries get access to the chips and data needed to build advanced systems. It's a logical argument, but it runs into a practical problem: defining what counts as a democracy in 2026 is harder than it sounds. Where do you put Turkey? India? The countries that don't fit neatly into either the US or Chinese camp?

Regional coalitions are emerging as a faster, more workable alternative. ASEAN and the Pacific Islands Forum are already building momentum toward binding AI rules without waiting for global consensus. The European Union's AI Act showed that a smaller group of aligned countries can write comprehensive, enforceable law in just a few years—something the global community has failed to do. The difference is simple: fewer countries with similar interests can move faster than everyone trying to agree.

Trade is where regional coalitions have their sharpest tool. In the Indo-Pacific, where trade partnerships are central to national strategy, countries can make AI governance a condition of market access. The Singapore-Australia Digital Economy Agreement already treats AI as a formal area of cooperation with binding rules on data flows, all built into an existing free trade framework. That same structure could be extended across larger regional agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. When compliance becomes a requirement for doing business rather than a voluntary commitment, it actually gets enforced.

Southeast Asia faces a particular crisis that global frameworks are too broad to address: AI-generated deepfakes are warping elections. Indonesia, Malaysia, and the Philippines each banned Grok, an AI tool being used to create fake videos and audio. That shared problem created momentum for action. ASEAN is now converting that urgency into its Digital Economy Framework Agreement, a treaty-level accord that will embed AI governance provisions with real teeth. The regional approach works because it targets the specific threats that matter most in that part of the world.

Regional bodies are not immune to power politics. A large economy can exert outsized influence over which standards get adopted. But that dysfunction is easier to contain at the regional level than it is globally, and imperfect governance that actually moves is better than perfect governance that never happens. As AI systems grow more capable every month, some form of binding rules beats waiting for worldwide consensus.

The risk is fragmentation. Different standards in different regions could create a compliance nightmare for AI companies operating across multiple blocs. That's why cross-regional harmonization matters. Countries could agree on shared technical benchmarks or interoperable standards—a model that already exists in defense and security, where the stakes are similarly high. Regional coalitions won't erase the US-China competition to shape AI's future, but they offer a third path: a way for countries to write their own rules without having to choose sides between superpowers. With the window to get AI governance right still open, speed may matter more than perfection.

Regional coalitions offer a more realistic third path, allowing countries to shape AI governance standards without having to fully align with either superpower
— Lowy Institute analysis
Global frameworks are often too broad to meaningfully address specific risks; regional governance allows blocs to target issues most acute in their own context
— Lowy Institute analysis
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