Southeast Asian workers fear AI dependence more than job loss: Report

A growing number of workers across Southeast Asia are more concerned about becoming overly reliant on artificial intelligence (AI) than being replaced by it, according to a new study by Milieu Insight.

The survey, conducted among 3,000 employees across Singapore, Thailand, Malaysia, Indonesia, the Philippines, and Vietnam, finds that 53% of respondents rank over-dependence on AI as their top concern, well ahead of privacy risks (40%) and job displacement (34%).

The findings signal a shift in how employees perceive AI’s impact on the workplace. Rather than fearing outright replacement, many workers are increasingly uneasy about the erosion of human judgment, critical thinking, and professional autonomy.

The concern around dependency is most pronounced in Indonesia (61%), followed by Thailand (55%), the Philippines (53%), Vietnam (50%), and both Malaysia and Singapore (49%).

By contrast, fears of job loss remain comparatively lower across markets, peaking at 42% in the Philippines and dropping to 24% in Vietnam. The data suggests that workers are more focused on preserving their independent capabilities than on the threat of redundancy.

AI seen as an assistant, not a replacement

Despite these concerns, most employees expect AI to play a supportive role in their jobs. Around 41% of respondents believe AI will assist them without replacing core responsibilities, while 51% expect it to reduce time spent on repetitive tasks.

Only 10% of workers anticipate complete job displacement, while another 10% foresee AI creating new opportunities or responsibilities. However, 26% expect significant portions of their roles to be automated, requiring them to adapt to new ways of working.

Optimism remains strong across the region

Overall sentiment toward AI remains positive. About 41% of respondents describe themselves as somewhat optimistic, and 13% say they are very optimistic about AI’s impact.

Optimism is strongest in Vietnam (66%) and Thailand (58%), while Singapore records the highest level of pessimism, though still relatively modest at 15%. The upbeat outlook in emerging Southeast Asian markets reflects expectations that AI will drive productivity, innovation, and economic growth.

Readiness gaps persist despite rising demand

While enthusiasm for AI is growing, many organisations appear underprepared to fully integrate it into the workplace.

Data security and privacy concerns remain the biggest barrier to adoption, cited by up to 50% of respondents in some markets. This is followed by a lack of technical skills, cost concerns, and employee resistance.

Infrastructure gaps are more evident in Thailand and Indonesia, highlighting uneven levels of organisational maturity across the region.

Notably, only a small share of organisations are considered “very prepared” for AI adoption, 25% in Vietnam, 14% in the Philippines, 13% in Indonesia, and 12% in Malaysia. Most respondents describe their companies as only “somewhat prepared.”

Employer-led encouragement to use AI also varies widely, from 25% in Singapore to 38% in Vietnam.

Businesses urged to focus on responsible AI use

Sundip Chahal, Group CEO of Milieu Insight, said the findings reflect a nuanced shift in workforce sentiment.

“Workers across Southeast Asia are not just worried about being replaced by AI. Their bigger concern is becoming too reliant on it at the expense of judgment, capability, and independent thinking,” he said.

He added that while openness to AI is clear, organisations must now prioritise training, governance, and responsible usage frameworks.

The study underscores a critical inflection point for businesses: as AI adoption accelerates, the challenge is no longer just technological implementation, but ensuring that human skills and decision-making remain at the core of the workplace.