Governments pressed to act as AI becomes part of daily operations, reveals Palo Alto Networks report

AI is now built into essential services across the Indo-Pacific, improving efficiency but exposing weak spots.

Concerns are growing across the Indo-Pacific as artificial intelligence becomes tied to the systems that power daily life. A new regional study points out that energy, transport, public safety, and other essential services are now leaning on AI to operate. While this shift improves speed and efficiency, it is also introducing new weak points that could spread across borders if something goes wrong.

The report, Securing the Future: AI, Critical Infrastructure, and Regulatory Readiness in the Indo-Pacific, was developed by Protostar Strategy with support from business chambers in four countries and Palo Alto Networks. It argues that AI has moved from long-term planning into routine use, and that governments are racing to manage the risks. Threats such as poisoned training data, manipulated models, and complex system links are becoming harder to detect and control.

Report author Dr. Tobias Feakin described how AI is now part of everyday operations, saying, "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."

He pointed to the region's mix of rapid digital adoption and tense international competition. Without shared rules, he warned that gaps may create opportunities for skilled attackers. If countries can align, he added, they can build stronger defenses and influence how global standards form.

Researchers drew findings from workshops with policymakers and industry leaders in Australia, India, Indonesia, and Singapore. Each country is responding in different ways. Australia is working on resilience but does not yet have formal checks built for AI. India is rolling out AI quickly across public and private sectors, but uneven rules and capacity gaps could affect essential services. Indonesia's fast-moving private sector is pushing new ideas, yet that speed may leave oversight behind. Singapore is building one of the region's most adaptable models, which others may study as they update their own rules.

Singapore's role drew support from its business community. Dr. Hsien-Hsien Lei, CEO of AmChamSG, said, "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."

The study also received backing from Palo Alto Networks. Vice President Nicole Quinn noted that the company sees the research as a guide for cooperation, stating that it provides a "vital framework" for both government and industry to shape responsible use of AI in essential services.

The report urges countries to move beyond awareness. It calls for assurance frameworks that support testing and validation, coordination between public agencies and private operators, and regular sharing of threat information. The authors believe regional groups such as ASEAN and the Quad can help countries build approaches that protect critical systems without closing off trade and market access.