By Marcus Low, Vice President and Managing Director, Asia-Pacific and Japan, Sonar
AI-assisted software development will drive workforce recalibration in APJ
Following widespread tech sector layoffs, 2026 will mark a recalibration of the region’s digital workforce. As AI lowers the barriers to entry in coding, software development is becoming more accessible to professionals beyond traditional engineering backgrounds. AI-assisted tools can now generate, test, and refine code through natural language prompts – allowing individuals with minimal coding experience to upskill quickly and contribute to digital product creation.
This democratization of software development presents a major economic opportunity for APJ, where countries such as India, China, and Indonesia are investing heavily in digital skilling and innovation ecosystems. With this, we’ll also see more of a focus from the volume of AI-generated code to the verification of its output. By 2026, the ability to collaborate with AI in software development, rather than compete against it, and focus on verifying its output, will be a defining skill for employability and growth in the region’s evolving tech economy.
Markets that encourage responsible AI will drive APJ’s next wave of innovation
In 2026, APJ markets that prioritise responsible AI will set the pace for innovation. Governments such as Singapore, India, and Australia have begun introducing regulatory sandboxes and governance frameworks that create room for safe experimentation while maintaining strong security standards. Enterprises will use these environments to modernise legacy systems, boost developer productivity, and integrate AI more securely across workflows.
In Southeast Asia—where micro, small and medium enterprises constitute the majority of businesses, and may lack in-house technical teams—AI-assisted development tools will allow staff and business owners to build simple apps and automate processes themselves. Markets that make it safe and simple for these new builders to experiment will capture a disproportionate share of AI-driven productivity and new digital services.
