A new report has sounded the alarm on escalating artificial intelligence (AI) risks across the Indo-Pacific’s critical infrastructure, warning that the region faces growing vulnerabilities as AI becomes embedded in essential systems such as energy, transportation, and emergency services.
Released today by Protostar Strategy in partnership with the American Chamber of Commerce (AmCham) chapters in Australia, India, Indonesia, and Singapore, and supported by Palo Alto Networks, the study — “Securing the Future: AI, Critical Infrastructure, and Regulatory Readiness in the Indo-Pacific” — marks one of the most comprehensive assessments of AI security readiness in the region to date.
The report highlights that while AI adoption is driving efficiency and resilience, it is also introducing new forms of risk, including data poisoning, adversarial manipulation, and systemic interdependencies that could cause cascading disruptions across borders.
“AI now sits inside the machinery of daily life. The question is no longer if it will be used to run these systems, but whether governments will secure it in time,” said Dr. Tobias Feakin, the report’s author and former Australian Ambassador for Cyber Affairs and Critical Technology. “The Indo-Pacific is on the frontlines of both digital adoption and geopolitical rivalry. Without a unified approach, countries risk creating exploitable gaps. But convergence could enable the region to set global standards for responsible AI.”
Regional Insights
Drawing from workshops with policymakers and industry leaders across the four economies, the study identifies distinct approaches and challenges:
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Australia is prioritizing resilience but lacks AI-specific assurance frameworks.
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India is advancing rapidly in AI adoption, though uneven state capacity and fragmented regulations pose significant risks.
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Indonesia’s innovation and private-sector growth outpace governance, creating potential systemic dependencies.
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Singapore leads the region with anticipatory, exportable AI governance models that could serve as a template for others.
“India’s AI ambitions are matched by the scale of its governance challenge,” said Ranjana Khanna, Director General and CEO, AmCham India. “This report provides a clear-eyed assessment of where we stand and a pragmatic roadmap to secure our critical infrastructure.”
Swapna Bapat, Vice President & Managing Director – India & SAARC at Palo Alto Networks, added: “This independent study offers policymakers and industry leaders a valuable framework to work together. Palo Alto Networks is committed to supporting the secure and responsible deployment of AI across critical infrastructure and government sectors in the Indo-Pacific.”
From Awareness to Action
The report warns that fragmented national approaches leave room for cyber threats and policy arbitrage. It calls for a coordinated regional strategy grounded in:
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Interoperable assurance frameworks for testing, validation, and governance.
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Cross-sector public–private collaboration to share intelligence and refine response mechanisms.
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Regional cooperation via ASEAN and the Quad to develop scalable, trusted, and exportable AI security models that balance innovation with resilience.
As AI becomes an indispensable part of critical infrastructure, the report concludes that collective governance and shared accountability will be essential to ensure safety, trust, and stability across the Indo-Pacific.
