Indo-Pacific Faces Growing AI Risks in Critical Infrastructure

A new international report has sounded the alarm on rising vulnerabilities across the Indo-Pacific’s critical infrastructure as artificial intelligence (AI) becomes deeply embedded in power grids, transport networks, and emergency services.

Titled “Securing the Future: AI, Critical Infrastructure, and Regulatory Readiness in the Indo-Pacific,” the study was released by Protostar Strategy in partnership with the American Chambers of Commerce of Australia, India, Indonesia, and Singapore, with support from Palo Alto Networks.

The findings reveal that AI has evolved from a future enabler to an operational necessity — improving efficiency but simultaneously introducing new cyber and systemic risks such as data poisoning, adversarial manipulation, and cascading technical failures that could span borders.

Dr. Tobias Feakin, author of the report and former Australian Ambassador for Cyber Affairs, warned that governments must act swiftly to secure AI within essential systems. “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,” he said.

Divergent Approaches Across the Region

The report identifies varying levels of preparedness among Indo-Pacific economies:

  • Australia has adopted a resilience-first strategy but lacks AI-specific assurance frameworks.

  • India is witnessing rapid AI adoption but faces fragmented regulation and uneven state capacity.

  • Indonesia’s innovation pace is outstripping governance, raising systemic dependency concerns.

  • Singapore stands out as the region’s most agile and exportable governance model for AI regulation.

Ranjana Khanna, Director General & CEO of AmCham India, noted that India’s AI potential is “matched by the scale of its governance challenge,” calling for a unified regulatory roadmap that balances innovation with accountability.

Toward a Regional Framework for AI Resilience

The report calls for cross-sectoral collaboration and interoperable frameworks to safeguard digital infrastructure. It recommends developing testing, verification, and validation protocols, enhancing public–private intelligence sharing, and using regional platforms like ASEAN and the Quad to coordinate security and standards.

Swapna Bapat, Vice President and Managing Director, India & SAARC, Palo Alto Networks, said the report offers “a vital framework for policymakers and industry leaders to collaborate on securing AI for critical infrastructure.”

As AI’s footprint deepens, the Indo-Pacific’s response could set a global benchmark. The report urges immediate regulatory action to prevent cyber threats from exploiting fragmented governance — warning that “without convergence, adversaries will exploit the seams; with it, the region can define how the world secures AI.”

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