In a transformative move for regional technology, Southeast Asia telecom companies are rapidly embracing telecom AI adoption, driven by strategic partnerships and emerging frameworks. One standout collaboration is between telecom giant Telkom Indonesia and tech leader IBM, who have launched a sovereign AI platform based on IBM’s watsonx suite. This initiative not only enhances Indonesia's data sovereignty but also marks a significant step toward boosting AI adoption across Southeast Asia’s telecom industry.

The Strategic Partnership: Telkom and IBM

In May 2025, Telkom Indonesia signed a pivotal agreement with IBM Indonesia to introduce sovereign AI solutions built on IBM watsonx.ai, hosted either on-premises or in secure local cloud environments. The goal? To empower businesses in telecommunications and beyond with responsible and reliable AI services that uphold regulatory requirements and protect domestic data. This partnership highlights not only the importance of regional data compliance but also the ambition to develop AI models tailored to Southeast Asia’s business ecosystems. Telkom's robust digital infrastructure combined with IBM’s AI expertise promises to unlock new possibilities for operators seeking to reduce costs, improve efficiency, and enhance customer experiences.

Broader Trends in Telecom AI Adoption

Southeast Asia’s telecom sector is at an inflection point. According to IBM studies, nearly 90% of global telecom providers are actively piloting or implementing AI use cases. From predictive network maintenance and intelligent customer support to generative AI chatbots and operational automation, telecom operators across the region are accelerating investments.

Regional forecasts corroborate this shift: telecom spending on AI in Southeast Asia is expected to rise by over 40% annually, with total investment projected to climb from US$174 million in 2021 to US$646 million by 2026 . This surge reflects the industry's collective recognition that telecom AI adoption will define competitiveness in the digital age.

Why This Matters for Indonesia and Beyond

1. Ensuring Data Sovereignty

The Telkom–IBM sovereign AI platform emphasizes secure, locally hosted data processing, a crucial characteristic for telecom services handling sensitive information. This builds trust among enterprises and regulators, reinforcing Indonesia's digital sovereignty goals.

2. Building Human-Centric Intelligence

IBM and Telkom’s approach aligns with a broader regional philosophy that stresses “human-centric AI”, systems designed to augment decision-making while maintaining transparency, bias mitigation, and ethical governance. Governance frameworks ensure that technology supports, rather than controls, human operators and policy.

3. Boosting Productivity Across Sectors

Telecom operators in Southeast Asia are prioritizing AI adoption for improved efficiency, from predictive analytics that reduce network outages to chatbots that enhance customer service. IBM’s ASEAN studies show businesses ready to adopt AI sharply outperform peers, with productivity and innovation as top priorities.

What Makes Telecom AI Adoption Scalable and Responsible?

Robust Governance and Transparency

Despite IBM’s data indicating 85% of ASEAN leaders valuing AI’s impact, only 17% (per ecosystem sources) had mature governance frameworks. Telkom and IBM are addressing this gap by embedding guardrails, model explainability, oversight committees, and data handling policies, into their sovereign AI rollout.

Talent and Infrastructure

A primary barrier to adoption is a lack of skilled professionals and robust infrastructure. In Indonesia, 85% of businesses report AI readiness, but only 24% have governance in place. Through consulting, training, and service integration, the Telkom–IBM partnership seeks to close this gap for telecom operators and enterprise clients.

Focused Use-Case Prioritization

Instead of broad experimentation, telecoms are zeroing in on core use cases: predictive network maintenance, customer engagement, and back‑office automation. IBM research recommends aligning AI use cases with strategic goals, and Telkom is embedding these best practices in its deployment .

Signs of Progress and Early Outcomes

The early phase of the Telkom–IBM AI collaboration has already begun transforming operations:

• Regulatory Alignment – Data processed and stored locally meets immediate compliance needs, shortening deployment cycles.
• Efficiency Gains – AI-powered network diagnostics and security systems translate into fewer service outages and lower maintenance budgets.
• Enhanced Customer Experiences – Chatbots and intelligent support systems reduce wait times and unify service across telecom channels.

Officials from Telkom, IBM Indonesia, and ASEAN leadership reaffirmed that this rollout is a model for scaling AI responsibly across industries, from healthcare and government to finance and manufacturing.

Road Ahead: Scaling Telecom AI Success

Strengthening Partnerships

With trials underway, broader partnerships involving insurers, software developers, and device manufacturers will expand the ecosystem. Telkom aims to integrate WatsonX-powered services across multiple platforms, reinforcing its position as an AI-first telecom.

Expanding across the Region

Success in Indonesia sets the stage for expansion into Malaysia, Thailand, and the Philippines. Telkom’s infrastructure and IBM’s AI lead are well positioned to support regional telecom consolidation and digital upgrades aligned with national vision.

Policy Influence and Industry Standards

Telkom–IBM’s results may help shape national AI policies. As ASEAN telecoms scale AI responsibly, governments can benefit from emerging standards in privacy, ethics, and operational safety.

A Catalyst for Telecom AI Adoption

Telecom is rapidly emerging as a key frontier for artificial intelligence in Southeast Asia. Telkom Indonesia’s sovereign AI platform, powered by IBM watsonx, exemplifies how regional operators can pursue telecom AI adoption pragmatically—grounded in governance, focused on outcomes, and calibrated for local needs.

As investments grow, talent builds, and governance matures, the telecom sector is poised to lead AI transformation across economies. Partnerships like Telkom and IBM’s ensure that this progress is inclusive, ethical, and sustainable—laying the groundwork for a digital future where intelligence is as responsible as it is powerful.