AI is gaining ground in Southeast Asia’s fast-growing eCommerce sector, with a new report from Lazada Group revealing that nearly 90% of consumers are now influenced by AI-generated recommendations when making online purchases. The report, conducted with research firm Kantar, highlights the expanding role of artificial intelligence in shaping shopping behaviors, but also points to challenges in adoption and execution.

The survey, which gathered responses from more than 6,000 shoppers across six key markets—Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines—underscores AI’s potential in transforming consumer experiences. However, while 63% of respondents are aware of AI tools on eCommerce platforms, fewer than half actively use them, indicating untapped opportunities for improvement.

AI Adoption Meets Consumer Demand—but Adoption Gaps Remain

AI-powered tools are becoming regular features on platforms like Lazada, with 80% of surveyed consumers reporting that they use these tools at least once a week. Chatbots, visual product searches, and language translation tools are among the most common, making the online shopping experience more accessible and personalized.

Yet adoption remains uneven. “There is still room for platforms to fine-tune their AI offerings to align more closely with consumer expectations,” the report notes. AI tools need to become more user-friendly and targeted to unlock their full potential in a region characterized by rapid digitalization and rising e-commerce competition.

“Predictive commerce”—where platforms anticipate consumer needs through data-driven algorithms—appears to be on the rise, with 92% of respondents relying on AI-generated recommendations and 90% trusting AI-powered product summaries. Shoppers also seem increasingly willing to pay a premium for AI-enhanced experiences, with 83% expressing a preference for more personalized shopping journeys.

Convenience remains a driving factor for AI adoption, with more than half of respondents citing ease of use as a key reason for embracing these tools. This trend reflects the expectations of mobile-first millennials and Gen Z shoppers, whose appetite for seamless, tech-enabled retail experiences is reshaping the region’s eCommerce landscape.

Lazada Unveils AI Features to Gain Competitive Edge

In a bid to capitalize on the AI boom, Lazada launched new in-app features designed to enhance both user experience and operational efficiency. The company introduced AI Lazzie, a virtual assistant offering personalized shopping support, 24/7 recommendations, and exclusive discounts.

Among the platform’s new offerings are:

• Message+: A personalized messaging feature that delivers tailored product suggestions, curated bundles, and exclusive vouchers.
• Try-On Models: Virtual fitting tools that allow users to preview clothing on models, with AI suggesting sizes to reduce returns.
• AI-Generated Product Descriptions: Automated, personalized listings that streamline content creation.
• AI-Powered Smart Reviews: Tools that condense product reviews into digestible summaries, helping consumers make faster decisions.

Howard Wang, Lazada’s chief technology officer, emphasized AI’s role in driving efficiency. “AI enables us to solve complex challenges while enhancing the user experience—whether through supply chain optimization or delivering more personalized recommendations,” Wang said at the report’s launch event.

Rising Competition in a Crowded Market

Lazada’s push into AI comes as the Southeast Asian eCommerce sector faces intensifying competition. Platforms such as Shopee and Tokopedia also invest heavily in AI and machine learning technologies to stay ahead. With over 160 million active online shoppers in the region, platforms are racing to meet rising consumer expectations in a post-pandemic environment defined by rapid digitalization and shifting consumer habits.

Southeast Asia’s eCommerce market is projected to grow by double digits over the next five years, with AI adoption emerging as a key factor in sustaining that momentum. Globally, eCommerce is expected to account for nearly 25% of total retail sales by 2027, according to eMarketer data.

However, Lazada’s report also highlights hurdles. Just one-third of respondents found AI tools effective in meeting their needs, suggesting that platforms will need to invest in more intuitive and practical solutions to maintain relevance. The ability to offer meaningful value through AI-powered services will be crucial in a region where customer loyalty can shift quickly.

The evolving role of AI signals a new era for online retail in Southeast Asia, where platforms must continuously refine their offerings to keep pace with changing consumer behavior. As Lazada and its competitors vie for market share, the ability to harness AI effectively could be the difference between success and stagnation. For Lazada, staying ahead means not just adopting AI but leveraging it to unlock new growth and enhance customer engagement at every touchpoint.

Speaking at the Lazada Convergence Forum, CEO James Dong stressed the importance of innovation in maintaining a competitive edge. “As technology evolves, so do customer expectations,” Dong said. “AI will remain central to driving the future of eCommerce, helping us create smarter, more personalized shopping experiences.”

In a market shaped by mobile-first consumption and tech-savvy shoppers, AI is fast becoming the backbone of modern retail. Looking for more AI-powered retail stories? Click into Alizila’s archive here