The rapid advancement of Generative AI (GenAI) has accelerated the development and adoption of artificial intelligence (AI) globally, including within the APEC region. As AI evolves into a general-purpose technology, it is transforming multiple sectors, reshaping global trade, and driving demands for AI-related goods, services, and talent. At the same time, this growth brings complex challenges, including the opacity of AI decision-making and the risk of exacerbating the digital divide. In response, APEC economies are taking varied approaches—introducing dedicated AI regulations, adapting existing legal frameworks, or prioritizing guidelines and standards to manage associated risks. AI is also becoming a recurring feature in Free Trade Agreements and Digital Economy Agreements. Against this backdrop, APEC is well-positioned to promote inclusive, transparent, and innovation-friendly AI ecosystems across the Asia-Pacific.

This policy brief outlines the current state of the AI regulatory landscape across APEC economies at both domestic and international levels. It begins by reviewing the benefits and challenges of AI development and adoption, then examines governance efforts in the region, and finally considers APEC’s potential role in promoting greater alignment and cooperation in this area.