With a growing and rich talent pool, the Southeast Asia region is uniquely positioned to lead in shaping the future of work. ASEAN organisations are already leading the region in prioritising employee experience, according to Workday’s recent survey. In fact, half of ASEAN business leaders are investing in physical, digital and cultural programmes to increase employee retention.

Now, as we navigate the current reality of Artificial Intelligence (AI), the relationship between AI and the employee experience is about to become more complex. The widespread adoption of AI means that employees now have access to a multitude of intelligent tools. In particular, the use of AI agents is on the rise, directly influencing the relationship between employees and the workplace, and transforming how work gets done – even going so far as introducing digital employees to organisations.

For ASEAN leaders, the path forward in managing today’s workforce effectively lies in understanding how to integrate AI with uniquely human leadership.

AI and the employee experience now work in tandem

Leaders need to recognise that AI and the employee experience are no longer mutually exclusive. In fact, the companies that fail to integrate AI into their talent management strategies risk falling behind in today’s competitive ASEAN business landscape. In an era where AI has revolutionised and proliferated in every facet of daily life, including the workplace, it is important that leaders keep up with the latest technological advancements. AI-powered tools, and more recently role-based AI agents, are essential for enhancing employee engagement, productivity and overall satisfaction.

AI agents are no longer just a future concept but a present reality in workplaces today. These agents automate common business processes and workflows, freeing employees to focus on activities requiring critical thinking, creativity and emotional intelligence. As a result, employees can focus on higher value-add roles that not only improve job satisfaction but also boost overall productivity – at scales and speeds never seen before.

A structured approach to managing AI agents is key

With more workplaces integrating AI agents, ASEAN leaders will need to implement the right balance between agent automation and human expertise to maximise efficiency, while ensuring responsible and secure management of these digital workers. This requires a structured approach to managing AI agents alongside human employees. Having a system of record for AI agents will enable organisations to define roles, track performance and ensure governance and compliance – similar to how they manage their human workforce.

Organisations that successfully integrate AI agents to streamline business workflows, hyper-contextualise learning experiences and provide intelligent in-the-moment support will attract and retain top talent. In contrast, those slow to embrace these innovations will find it challenging to stay competitive in the rapidly evolving digital landscape across ASEAN.

Leaders who invest in skills will flourish in the age of AI

As AI continues to redefine roles, investing in skills development remains a priority – whether that be exposing employees to different areas of the business or training on AI capabilities. This is particularly crucial for ASEAN organisations. Workday’s study found that 38% of respondents report employee upskilling as a top challenge. The region’s response has been decisive, with around half investing in employee training and development programmes to close identified skills gaps.

With AI handling more manual tasks, it will open up incredible opportunities for junior employees to step up and take on more responsibility, growing in their roles much faster. However, to succeed and grow into leadership roles, it will be key for employees to hone soft skills such as creative thinking, empathy, communication and building strong relationships – skills that AI cannot reliably replicate. In ASEAN, where business relationships are foundational to success, leaders need to nurture a new generation that can thrive in an AI-first workplace and are well-versed in the human connections that drive the business forward. Finding the balance of speed and scale that agentic AI innovations offer with traditional business skills and values is key.

The ASEAN edge: People at the centre

The future of the workforce will be AI-driven, and leaders and employees alike will need to learn how to navigate the new opportunities and challenges in this new reality. Thankfully, ASEAN is already at the forefront of workplace innovation, with 87% of organisations in the region using AI and Machine Learning to conduct HR functions and streamline talent management processes. Notably, this is ahead of other regions like South Korea (79%), North Asia (74%) and Australia / New Zealand (72%).

ASEAN’s competitive edge has always been people at the heart of operations. In an era of AI, leaders now have the opportunity to drive workplaces where technology handles the routine, while employees can focus on building customer relationships, driving innovation and solving complex regional challenges.

As ASEAN continues to grow as a rising business hub, the future belongs to organisations that put their people first. Leaders who embrace this people-centric approach, supported by AI innovation, will set the standard for what success looks like in the years to come.