Tech Explained: Cambodia steps up AI push to narrow regional tech gap in Simple Terms

Cambodia is stepping up its artificial intelligence push as it tries to narrow a widening gap between countries that build AI systems and those that rely on imported tools and foreign data infrastructure. The country is still working from a draft National AI Strategy rather than a formally adopted final plan.

The draft strategy sets targets for investment, skills, and sector adoption, with agriculture and manufacturing identified as key areas for AI deployment. Cambodian officials have tied the effort to longer-term economic goals and argued that slower adopters risk falling further behind as AI spreads across industries and public services.

Across Southeast Asia, policymakers have pitched AI adoption as a major source of growth. Cambodia’s AI Readiness Assessment Report says AI could add about USD $3.35 billion to USD $6.7 billion to the country’s GDP by 2030, equal to roughly a 5% to 10% lift, while broader regional estimates put the ASEAN upside close to USD $1 trillion by the end of the decade.

Readiness gap

Digital readiness remains a major constraint. Cambodia still has a limited base of advanced digital skills, while basic ICT capability also remains low by regional standards. The Oxford Insights Government AI Readiness Index 2025 ranked Cambodia 118th out of 195 countries, though that still marked a 27-place improvement from the previous year.

That gap matters because Cambodia is trying to build AI capacity from a relatively low digital base. Recent assessments point to progress in policy attention and institutional engagement, but also to weaknesses in infrastructure, data governance, research capacity, and the broader talent pipeline needed to support AI adoption at scale.

Infrastructure limits

Domestic digital infrastructure remains limited for heavier AI use cases, especially those that require larger-scale compute, storage, and secure data handling. That leaves Cambodia reliant on foreign platforms and external infrastructure for much of its more demanding digital activity, raising questions around cost, control, and data sovereignty as public and private sector AI use expands.

Connectivity is improving, but access remains uneven. Internet penetration in Cambodia stood at 60.7% at the start of 2025. Cambodia then officially launched 5G mobile services on 01 January 2026, adding a new layer to its digital infrastructure buildout.

The country is also investing in state-backed digital infrastructure. Japan agreed to provide grant aid of about USD $16 million for Cambodia’s National Data Center and wider government digitization efforts, part of a broader push to strengthen the country’s public digital backbone.

Language data

Language remains another barrier. Cambodia’s AI readiness work identified Khmer language resources as a weak point in the local ecosystem, reflecting a broader challenge faced by lower-resource languages in the development of language models, speech tools, and other AI systems that depend on large, structured datasets.

Research institutions are beginning to address that gap. The Cambodia Academy of Digital Technology has ongoing work in Khmer-language technology, including Khmer Braille machine translation and other AI-related projects aimed at expanding local digital capability and accessibility.

Skills pipeline

Building a domestic workforce is central to the draft strategy. The document sets a target of training 1,000 technical talents in AI and data science by 2030, reflecting official concern that Cambodia needs far more homegrown expertise if it wants AI adoption to move beyond pilot projects and imported services.

Cambodia’s broader education and skills base remains a challenge. Recent development assessments have pointed to persistent weaknesses in digital literacy, technical training, and research depth, even as the government tries to position technology as a driver of future growth. That leaves Cambodia balancing long-term ambition with a short-term shortage of workers who can build, manage, and govern advanced digital systems.

Security and trust

Foreign investment will be important to Cambodia’s digital buildout, but reputational risks remain. Amnesty International said in June 2025 that it had identified at least 53 scamming compounds in Cambodia, tying them to forced labor, torture, and the harvesting of personal data. That has added another layer of concern around governance, enforcement, and trust in the country’s digital environment.

Cambodia is also still developing parts of its legal framework around digital governance. Recent assessments say the country is making progress in AI policy and legal discussions, while draft personal data protection rules remain under consideration. How those rules develop will shape the way organizations collect, store, and use data for AI-related services.

Jobs exposure

Labour market risk remains one of the biggest pressures behind the AI debate. ILO-linked estimates say 57% of Cambodian employment is at high risk of automation, or more than 4 million jobs. The garment sector is among the most exposed, with earlier ILO analysis estimating that 88% of jobs in the sector face high automation risk.

That raises the stakes for Cambodia’s AI plans. The upside case centers on productivity, investment, and digital upgrading. The downside case is a sharper divide between a small group able to benefit from AI and a much larger workforce exposed to displacement without enough access to retraining, infrastructure, or higher-value jobs.