Asian start-ups shift from consumer apps to AI for industry

In short: Many fast-growing Asia-Pacific start-ups are now using AI to improve established industries, not to build new consumer apps.

What's going on

Asia’s start-up scene is changing. The region used to be dominated by consumer services like shopping apps and ride-hailing. Now many newer companies are focused on using AI, meaning software that learns from data (like a very fast pattern-spotter), to make existing industries work better.

The Financial Times points to the latest FT and Statista ranking of high-growth Asia-Pacific companies as evidence of this shift. South Korea stands out, with four of the top 10 fastest-growing companies based in Seoul. The article links this to strong engineering talent and high research spending, including more than won 130tn, about $86bn, in R&D in 2024.

Several examples show what these companies do. Deepnoid works on software that analyzes medical images, which can help doctors spot issues faster. Nota AI focuses on “compressing” AI models, which means shrinking the software so it can run on smaller devices more efficiently (like packing the same items into a smaller suitcase).

Japan is seeing a similar move, especially in automation and robotics. LexxPluss builds robots that can move goods around warehouses, helping companies cope with labor shortages linked to Japan’s ageing population.

Across the full 500-company list, Singapore and India have the most companies represented, with 101 each. In Singapore, Ailytics uses computer vision, meaning software that interprets images like a person would, to monitor construction sites and spot safety risks in real time.

What to watch

This growth depends partly on global trade and stable supply chains. The FT notes risks like tariffs, geopolitical tensions, and shipping disruptions, plus long-term pressure from ageing populations in several countries.

Source: Financial Times