ABOUT 88% of consumers in Southeast Asia make purchase decisions based on artificial intelligence (AI)-generated content and recommendations, demonstrating a high level of trust in AI-driven insights, revealed the whitepaper Artificial Intelligence Adoption in eCommerce in Southeast Asia.
At least half of the respondents (52%) also cited convenient shopping as a top reason for embracing AI in their personal lives, underscoring the value they see in it for providing ease and efficiency in their shopping experiences.
Benefits of using AI
AI is used in online shopping to save time from browsing and make a more informed purchase decision. With this, 91% of Southeast Asian shoppers are confident AI can identify products that are most relevant to them.
Notably, over one-third of the respondents have rated AI features such as chatbots (47%), visual product searches (40%) and translations (40%) as features that help address their shopping needs. Most commonly used AI-powered apps in online shopping are apps that support information gathering, especially those that strengthen communication or save time in browsing.
Of those who actively use AI features, 92% consumers appreciate the personalised recommendations while 90% value AI’s role in summarising product information, illustrating the demand for AI solutions in simplifying the shopping journey and streamlining decision-making.
Personalised recommendations are deemed to be timesaver for Southeast Asia shoppers and offer support in making a smarter choice. While uptake of personalised recommendations is still low, the top usage occasions among existing users show the potential it has in helping shoppers navigate through the myriad of online content.
Half of the respondents (49%) have also expressed AI improves discovery, customer service and increases enjoyment during online shopping.
Enhancing user experience
With 80% of respondents using AI features on e-commerce apps at least once a week, AI integration in e-commerce platforms are poised to deliver more holistic shopping experiences.
AI-driven solutions provide the seamless, immediate assistance, which allow customers to feel supported and valued through their journey. Other benefits include improving discovery (49%), improving customer service (49%), increase enjoyment (49%) and improve delivery (48%).
About 83% of shoppers are willing to pay more per transaction for an AI-powered shopping experience, which underscores the strong readiness in Southeast Asia for AI. In addition, there is a high level of trust towards AI in online shopping.
When asked about top motivations when it comes to online shopping, Southeast Asia shoppers unanimously highlighted price comparison and thorough research as key drivers for purchase. About 49% of Southeast Asian shoppers indicate price comparison as one of the most preferred features on an e-commerce platform.
While AI chatbots are currently associated for its customer support function, its ability to be a personal curator of deals and discounts will ensure the shopper journey becomes more seamless and fuss-free.
AI is not just customer support
Despite having the highest share of usage, Southeast Asian shoppers are not fully aware of AI
chatbots’ capabilities and are mainly associating it with faster customer support.
Shoppers are also less likely to use AI chatbots when they face issues in their orders or require assistance for problem solving. About 51% prefers the call centre when reporting a problem with delivered item, while the remaining 49% prefers the AI chatbot. Such perception will be a critical gap to resolve for Southeast Asian shoppers to harness the full potential of AI in online shopping.
Missing vouchers and discounts are the top pain points for price-conscious shoppers who also highlighted competitive pricing as the top reason for staying loyal to a platform.
AI is taking the online shopping experience even further, redefining what consumers can expect from personalisation and efficiency. AI’s influence is everywhere, optimising shopping journeys through tailored product recommendations, personalised deals and real-time customer support. AI’s integration makes online shopping not only more accessible but also increasingly tailored to individual needs and preferences.
The study, which was done by Lazada in partnership with Kantar Profiles, surveyed 6,038 e-commerce shoppers across genders, age groups and household income levels in six Southeast Asian countries, including Malaysia.
Malaysian shoppers embracing artificial intelligence
AI has become an integral part of Malaysian shoppers today. Apart from frequent usage of AI-powered apps, 70% of Malaysians shared they embrace AI in their personal lives.
In Malaysia, the adoption of AI in online shopping is perceived through the availability of new features in online shopping platform, such as virtual skincare and comparing prices between sellers.
About 37% of Malaysians find AI chatbots most helpful, compared with high AI chatbot usage in Indonesia (42%) and the Philippines (41%).
Apart from being most commonly used, AI chatbots and visual product searches are also AI-powered apps that shoppers find most helpful in their online shopping journey. AI chatbots are most often used to acquire information, especially in learning about product availability, delivery status and membership details.
