Lazada, a leading eCommerce platform in Southeast Asia, has launched the “Artificial Intelligence Adoption in eCommerce in Southeast Asia” whitepaper, jointly developed with Kantar. This inaugural report provides insights into the adoption and perceptions of artificial intelligence (AI) in eCommerce across six Southeast Asian markets, surveying over 6,000 shoppers. It delves into consumer awareness, trust, preferences, shopping behaviour, and the challenges encountered by users, offering a detailed look at how AI is reshaping the online shopping experience.
One of the key findings from the whitepaper is the gap between perceived and actual AI adoption in eCommerce. Nearly two-thirds (63%) of respondents in Southeast Asia believe AI is already widely implemented in online shopping, identifying chatbots (63%), translations (53%), and visual product searches (52%) as the main AI-enabled features. However, actual use for these tools remains lower, with 47% using chatbots, 40% visual product searches, and 40% for translations. Moreover, only about a third of respondents rated these AI tools as helpful in addressing their shopping needs.
This discrepancy between consumer expectations and actual effectiveness highlights an opportunity for eCommerce platforms to enhance user experiences through more intuitive and tailored AI features. By harnessing data-driven insights, eCommerce platforms can bridge this gap, offering hyper-personalised, seamless shopping experiences that promote higher customer satisfaction, increased loyalty, and new growth opportunities.
Consumer Behaviour and Preferences in Online Shopping
The whitepaper also delves into consumer behaviour and priorities when shopping online. Trust in AI-powered platforms is notably high, with 92% of respondents relying on AI for personalised product recommendations and 90% for product summaries. AI-generated content and product recommendations are influential, with 88% of respondents using them to guide purchasing decisions.
Additionally, the study reveals that the main motivations for adopting AI in online shopping relate to convenience, as 52% of Southeast Asian shoppers prioritise convenience, while 51% consider product and seller reviews critical. This finding underscores a significant opportunity for eCommerce platforms to enhance the depth, relevance, and authenticity of reviews through AI technology, enabling users to make more informed decisions.
In line with these preferences, a vast majority of respondents (83%) indicated a willingness to pay more for AI-enhanced shopping experiences, reflecting the added value they perceive from these tools. Approximately half (49%) of shoppers reported that AI improves discovery, customer service, and overall enjoyment in online shopping. With 80% of respondents engaging with AI features on eCommerce apps at least once a week, there is ample scope for platforms to deepen their AI integration, creating more comprehensive and fulfilling shopping experiences.
Lazada’s Commitment to AI-Driven Innovations
As part of its ongoing commitment to AI innovation, Lazada unveiled several new AI-driven features alongside the whitepaper launch, collectively branded under AI Lazzie. This integrated and interactive AI-powered personal shopper provides 24/7 tailored assistance to consumers and sellers. It is designed to enhance user engagement and shopping satisfaction through four key functionalities:
- Message+: This tool enables personalised messaging, offering contextual responses, tailored shopping recommendations, exclusive vouchers and discounts, and curated bundle deals for optimal offers.
- Try-On Models: This upgraded feature allows users to select virtual models to assess clothing fit and recommends sizes based on the AI model. This addition is expected to reduce marketing and operational costs for sellers while improving sales efficiency by helping customers make confident purchase decisions.
- AI-Powered Product Description: Using AI to generate engaging and targeted product listings, this feature highlights key product attributes that align with user preferences, creating a more appealing and informative browsing experience.
- AI-Powered Smart Reviews: By summarising extensive product reviews, this feature provides users with a concise and insightful overview, enabling quicker and more informed shopping decisions.
AI Lazzie, powered by OpenAI’s ChatGPT, considers buyer preferences, purchase history, and query context to deliver tailored product suggestions, helping shoppers navigate the platform with ease and make optimised choices.
The Future of AI in eCommerce
“The launch of our inaugural whitepaper marks a pivotal moment in understanding how AI is shaping the future of eCommerce,” said James Dong, CEO of Lazada Group. “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.”
Howard Wang, CTO of Lazada Group, added, “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 enhancing AI algorithms to personalise product recommendations, optimise supply chains, and elevate customer service interactions, it’s evident that AI will remain a critical enabler, expanding the boundaries of what eCommerce can accomplish. What excites me most is how we are building robust AI systems to solve complex technical problems, directly improving the shopping experience for our customers.”
The Lazada Convergence Forum, held alongside the whitepaper and app upgrade launch, brought together over 100 industry experts, media representatives, and Lazada stakeholders. Attendees participated in discussions and networking sessions to gain insights into the evolving eCommerce landscape and the transformative potential of AI technologies.
As Southeast Asia’s eCommerce ecosystem continues to grow, Lazada’s commitment to AI advancement will play a pivotal role in delivering meaningful, personalised, and efficient shopping experiences, paving the way for a future where technology and convenience converge seamlessly.
