Artificial Intelligence and the Speed Asymmetry: Understanding the Governance Challenges Created by the Diverging Speeds of AI, Markets and Public Institutions

This policy brief analyses the central governance challenge of the AI transition: not the technology itself alone, but the structural speed asymmetry between three forces evolving at radically different tempos, AI capability (months), market adaptation (quarters to years), and institutional response (years to decades). Drawing on cross-sectoral evidence (industry, logistics, healthcare, education, knowledge work), it frames the transformation of work across three layers, substitution, reconfiguration, and creation, and argues that durable competitive advantage lies in the latter two. It then examines why Southeast Asia is especially exposed. It concludes with six recommendations for policymakers.

Companion policy brief to a keynote presentation delivered at the Government–Industry–Academia Policy Trialogue 2025, Asian Institute of Technology, Pathum Thani, Thailand, 28 November 2025.