Developing digital literacy and competence in Southeast Asia higher education: the role of institutional support and prior AI experience

Purpose This study investigates how institutional support and prior experience with artificial intelligence (AI) influence digital literacy and digital competence among students and educators in Asian higher education. It examines the interplay between institutional and experiential factors, providing insights into strategies for enhancing digital skills and facilitating effective AI integration in academic contexts. Design/methodology/approach A cross-sectional survey was conducted across universities in Indonesia, Malaysia, and the Philippines, targeting students and academic staff with prior engagement in AI or digital learning. A total of 350 valid responses were analysed. Structural equation modelling (SEM) was employed to test direct, mediating, and moderating relationships among institutional support, AI experience, digital literacy, and digital competence. Reliability, convergent validity, and discriminant validity of the constructs were confirmed. Mediation and moderation effects were examined using bootstrapped path analysis with 5,000 resamples. Findings Institutional support significantly enhances both digital literacy and competence, while prior AI experience positively influences digital competence, partially mediated by digital literacy. Moreover, institutional support strengthens the effect of AI experience on digital competence, indicating that supportive learning environments can amplify the benefits of experiential AI engagement. Research limitations/implications This study is limited by its cross-sectional design and reliance on self-reported data, which restricts causal inference and may introduce response bias, although common-method bias tests suggest minimal impact. The use of purposive and convenience sampling across three ASEAN countries also limits generalisability to other contexts. Despite these limitations, the findings provide important implications for higher education practice and policy. Strengthening institutional support, embedding digital literacy within curricula, and expanding meaningful AI learning experiences can enhance digital competence development. The proposed framework offers a practical and replicable model for guiding institutional and policy-level digital transformation initiatives. Practical implications The findings highlight the importance of sustained institutional support in developing digital competence in higher education. Universities should invest in reliable digital infrastructure, integrate AI-enabled tools into teaching and learning, and provide continuous professional development for educators. Embedding structured digital literacy programmes within curricula can strengthen students’ critical, ethical, and practical use of digital technologies. Policymakers should support institutions through clear digital and AI education frameworks that promote equitable access and workforce readiness. Together, these actions can help higher education institutions build resilient, digitally competent academic communities in an AI-enabled learning environment. Social implications Enhancing educators’ digital literacy and competence has broader societal benefits, as it prepares students for a technology-driven future and reduces digital inequality. By equipping teachers to integrate AI responsibly, institutions contribute to more inclusive and equitable learning environments. Strengthening technology self-efficacy also empowers educators to model confidence and adaptability, fostering positive attitudes toward digital innovation among learners. Furthermore, policies that ensure equitable access to institutional support help bridge gaps between educators with differing levels of prior AI experience. Ultimately, improving digital readiness in education supports workforce development, social equity, and sustainable adoption of emerging technologies. Originality/value By integrating institutional and experiential factors into a single framework, this study advances understanding of digital competence development in Asian higher education, a region that remains underexplored. The findings provide empirical evidence that institutional support is critical for maximising the impact of AI experience, offering practical guidance for curriculum design, faculty development, and policy planning to foster digitally competent academic communities.