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Majority of Southeast Asian consumers trust AI for online purchases, personalised shopping

by Aliza Carmona

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October 30, 2024

Singapore – Majority or 88% of consumers in Southeast Asia rely on AI-driven content and product recommendations for purchasing decisions, with 83% willing to pay more for AI-enhanced shopping experiences, reveals a whitepaper jointly developed by Lazada and Kantar.

The report reveals that nearly two-thirds of respondents (63%) in Southeast Asia perceive AI as widely adopted in online shopping, with more than half identifying AI chatbots (63%), translations (53%), and visual product searches (52%), as key recognised features in ecommerce.

In terms of actual adoption, however, usage of these features remains below 50%—47% for AI chatbots, 40% for visual product searches, and 40% for translations. The report also indicates that only one-third of respondents found these features helpful in meeting their needs.

According to the whitepaper, the gap between perceived and actual effectiveness of AI features highlights an opportunity for ecommerce platforms to leverage AI and data insights, bridging this divide to boost customer satisfaction.

Interestingly, while only a few respondents found AI features in online shopping helpful, the report reveals a strong trust in AI-powered platforms. The majority rely on AI for personalised recommendations (92%) and product summaries (90%), with 88% making purchasing decisions based on AI-generated content and suggestions.

When examining consumer motivations for using AI in online shopping, over half of SEA respondents (52%) cited convenience as a primary reason for adopting AI in their personal lives. Similarly, 51% prioritise product and seller reviews, highlighting an opportunity to enhance review depth, relevance, and authenticity through AI technology.

Furthermore, a substantial majority of shoppers (83%) are willing to pay more for AI-powered shopping experiences. This willingness is linked to the positive benefits shoppers perceive, with nearly half of respondents (49%) indicating that AI enhances discovery, customer service, and overall enjoyment during online shopping.

James Dong, chief executive officer of Lazada Group, elaborated, “The launch of our inaugural whitepaper marks a pivotal moment in understanding how AI is shaping the future of eCommerce. As technology evolves, so do consumer expectations. This whitepaper explores the transformative potential of AI and provides insights into how businesses in Southeast Asia can harness it to create personalised, seamless, and smart shopping experiences.” 

“At Lazada, we are committed to staying at the forefront of innovation, ensuring that AI drives both efficiency and enhanced customer engagement across all touchpoints. Going forward, we will continue to invest in AI and cutting-edge technologies to revolutionise the eCommerce ecosystem,” he added. 

With 80% of respondents using AI features on eCommerce apps at least once a week, the whitepaper urges eCommerce platforms to seize the opportunity to enhance their AI integration efforts and provide more holistic and exceptional shopping experiences.

“AI has become an integral part of the eCommerce landscape, enabling smarter decision-making and more tailored customer experiences at scale. As we dive deep into how we can enhance AI algorithms to personalise product recommendations, optimise supply chains, and enhance customer service interactions, it is clear that AI will remain a key enabler in pushing the boundaries of what eCommerce can achieve. What excites me most is how we are building robust AI systems to solve complex technical problems in ways that directly improve the shopping experience for our customers,” said Howard Wang, chief technology officer at Lazada Group.

Related Tags Consumer Insights Ecommerce Kantar AI Southeast Asia Lazada Online shopping
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