Asia-Pacific economies are projected to grow 3.4% in 2026, up from 3.2% in 2025, according to the APEC Secretariat. When leaders meet in Shenzhen on November 18–19, artificial intelligence will be one of the main questions: can it turn that forecast into lasting productivity gains?
APEC’s 21 economies account for more than 60% of global GDP. Its AI Initiative (2026–2030) sets a framework for innovation, capacity building and wider adoption.
The July digital and AI ministerial in Chengdu saw members focusing on digital infrastructure, digital skills, trusted digital environments, and real-world use cases. Uncertainties like inflation, trade concerns, and disparate levels of technological preparedness persist.
There will be a CEO Summit in the same location from November 17 to 18.
Hardware could lead the way. Computing hardware and physical AI, such as robotics, were mentioned by Albert Chen of Two Small Fish Ventures during his keynote at SAAS NORTH AI in Ottawa on November 4 to 5. Chen mentioned semiconductors, photonics, and interconnects as fields that have significant growth opportunities, as well as hardware limitations as the current limit to advanced AI.
Chen was critical of the winner-takes-all approach and stressed the need for greater cooperation and fewer barriers between countries. The barriers exist in the form of export restrictions on advanced chips, IP protection, data security, and investment restrictions.
Tina Kung, founder and chief technology officer of Nue, hopes for increasing collaboration across borders and interoperability. Kung highlighted that China is strong in AI infrastructure and industrial applications while North America excels in fundamental models and enterprise software.
AI agents will enable smaller companies to automate mundane tasks and focus more on serving their clients.
Lower levels of digital proficiency, implementation expenses, and lack of access to data can exacerbate the productivity differences between big organisations.
Also, the study by APEC shows that digitisation of trading papers can reduce transaction costs by around 5.8%. This approach will be especially effective for smaller exporters.
