The Indo-Pacific region is experiencing mounting vulnerabilities in critical infrastructure as artificial intelligence (AI) becomes integral to power, transport, emergency services and other essential systems.
This is according to a report released by Protostar Strategy in partnership with the American Chamber of Commerce Australia, its counterparts in India, Indonesia and Singapore, and with support from Palo Alto Networks.
The study underscores that AI has shifted from future promise to operational reality. Adoption is unlocking efficiency and resilience benefits but also leading to challenges such as data poisoning, adversarial manipulation and tightly coupled systems where technical failures may cascade across borders.
“AI now sits inside the machinery of daily life. The question is no longer if it will be used to run these systems, but whether governments will secure it in time,” said Tobias Feakin, the report’s author and former Australian Ambassador for Cyber Affairs and Critical Technology.
Feaken said the Indo-Pacific is on the frontlines of both digital adoption and geopolitical rivalry.
“Without a unified approach, countries risk creating gaps that sophisticated cyber actors can exploit. If they can converge, they will not only secure their own resilience but shape the standards that others will follow,” Feakin added.
The report is based on high-level workshops with policymakers and industry leaders across Australia, India, Indonesia and Singapore.
Findings show that Singapore has the region’s most anticipatory and exportable governance model — one whose agility could set the standard for others in the region.
Also Indonesia’s innovation and private-sector dynamism are outpacing governance, creating risks of dependency and systemic vulnerability.
Further, Australia is taking a resilience-first approach, but still lacks AI-specific assurance frameworks.
Meanwhile, India is seeing rapid AI adoption, but regulatory fragmentation and uneven state capacity are exposing its essential systems.
“AmChamSG member companies appreciate that Singapore’s leadership in AI and cybersecurity places it in a prime position to spearhead the regional harmonisation of standards, ensuring that progress in technology doesn’t outpace our ability to secure it,” said Hsien-Hsien Lei, CEO of AmChamSG.
“Palo Alto Networks is proud to have commissioned this independent report,” said the report provides a vital framework for policymakers and industry leaders to collaborate on a path forward.
The report emphasises that fragmented approaches create opportunities for cyber threats and policy arbitrage. It proposes a cooperative path forward built on interoperable assurance frameworks; cross-sector, public-private co-governance; and leveraging regional platforms.
