Asia Pacific Policy Observatory June 2025 Report – Asia Pacific’s Digital Governance in the Age of Artificial Intelligence: A Youth-Led Analysis

This report is the fifth publication of the Asia Pacific Policy Observatory (APPO). As artificial intelligence continues to evolve rapidly, its intersection with digital governance has become a critical area of concern especially for youth across the Asia Pacific. This edition presents a comprehensive, youth-led analysis of how AI is shaping the region’s digital ecosystems, rights, and inclusivity.

The June 2025 report explores four core areas of digital governance impacted by AI: online safety and security, digital well-being, data privacy and protection, and digital inclusion. Each chapter draws attention to the unique risks and opportunities AI presents for young people, from the spread of deepfakes and algorithmic harm, to the potential and pitfalls of AI-driven mental health apps, to the growing AI divide affecting rural and marginalized communities.

The report also highlights gaps in data governance, especially the lack of informed consent and transparency when youth data is used to train AI systems. It calls for updated privacy laws, safety-by-design principles, and greater youth engagement in policymaking.

Ultimately, this publication emphasizes the urgent need for regional cooperation, ethical AI governance, and youth-led digital policy development to ensure that AI advances do not deepen existing inequalities.This report serves as both a diagnostic and a roadmap supporting policymakers, civil society, and tech stakeholders in co-creating a safer, more inclusive, and youth-centered digital future for the Asia Pacific.

Lastly, we would like to express our sincere gratitude to the Taiwan Network Information Centre (TWNIC) for their generous support in making this project possible. We also extend special thanks to our advisory reviewers: Dmitry Kuznetsov (Critical Infrastructure Lab, University of Amsterdam), Athena Tong (University of Tokyo), Katsuhiko Takeda (ChildFund Japan),​​ Sriya Sridhar (The Pranava Institute and Shiv Nadar School of Law), Gyan Prakash Tripathi, Stella Teoh (Southeast Asia Youth IGF), and Tayyaba Iftikhar, for their valuable contributions and support of this report.

Executive Summary

The Asia Pacific Policy Observatory’s June 2025 report, “Asia Pacific’s Digital Governance in the Age of Artificial Intelligence: A Youth-Led Analysis,” examines the intersection of AI and digital governance across the Asia Pacific region. The report focuses on four critical areas: online safety and security, digital well-being, data privacy and protection, and digital inclusion. It provides a comprehensive analysis of the challenges and opportunities presented by AI for young people in the region.

The first chapter examines the escalating online safety concerns in the AI age. The analysis reveals that AI technologies amplify existing online harms, such as deepfakes and AI-generated child sexual abuse material. The chapter highlights three primary threats facing youth: (1) online child sexual abuse and exploitation, (2) technology-facilitated gender-based violence, and (3) cyberbullying. It emphasizes the need for comprehensive AI regulation across the entire technology lifecycle, as well as mandatory safety-by-design principles, to mitigate these risks.

The second chapter investigates the impact of AI on digital well-being in the Asia Pacific region. The research shows that AI-powered personalization can create echo chambers and increase anxiety through constant comparison. The chapter also explores the potential of AI mental health apps to support mental health, particularly in areas with limited resources. However, it notes that these apps face challenges in rural areas and multilingual contexts.

The third chapter focuses on the data privacy challenges in the AI landscape. The analysis identifies significant gaps in consent mechanisms and data governance across Asia Pacific countries. The chapter highlights the vulnerabilities of young people as their data trains AI systems without adequate safeguards. It advocates for up-to-date privacy laws, transparent data practices, and youth participation in privacy policy development to address these concerns.

The fourth chapter examines the growing AI divide and its implications for digital inclusion in the APAC region. The research reveals that AI technologies risk excluding rural youth, linguistic minorities, and economically disadvantaged communities. The chapter documents successful initiatives that promote digital inclusion and highlights the need for regional cooperation to bridge the digital divide.

With the report highlighting several prominent regional collaborations as models for cooperative action, we are seeing two distinct and divergent scenarios emerging in the region. 

  • In the scenario of an inclusive future, universal and meaningful connectivity reaches all communities, AI systems operate in local languages, and youth from diverse backgrounds actively shape technology policy. 
  • The alternative scenario shows a fragmented region where rural youth remain disconnected, AI deepens existing inequalities, and marginalized groups face systematic exclusion from digital advancement. 

At this defining crossroad, the report adds to the collective call for immediate, coordinated action across governments, technology companies, and civil society for a comprehensive, rights-respecting approach that places young people at the center of AI governance and digital policy. Our call to actions include:

  • AI regulation across the entire lifecycle with mandatory safety-by-design principles and youth participation in governance through advisory boards and co-design processes.
  • Governments must invest in national digital literacy programs, enforce transparent data protection laws, and expand connectivity to bridge the urban-rural divide. 
  • Tech companies need to embed ethical design, language inclusivity, and bias testing into all AI products while implementing clear consent mechanisms. 
  • Civil society must educate users, monitor digital harms, and amplify youth voices in policy decisions. 

We envision an AI-powered future where every young person can thrive with dignity, agency, and equal access to digital opportunities. By prioritizing youth participation and inclusive policy development, the region can better harness the benefits of AI while mitigating its risks. The report provides pointers for creating a digital future that serves all communities in Asia Pacific, emphasizing the need for regional cooperation and youth-led solutions.