AI Reshapes Shopping in Southeast Asia, Lazada Innovates

14/11/2024

It’s incredible how much artificial intelligence (AI) has integrated into our shopping habits, especially in Southeast Asia. A fresh report from Lazada Group, in collaboration with Kantar, reveals that nearly 90% of Southeast Asian consumers are swayed by AI-generated recommendations when shopping online. But the road to full AI adoption is still dotted with challenges.

Understanding AI’s Impact on Consumer Behavior

The survey tapped into insights from over 6,000 shoppers across six key markets including Singapore and Indonesia. What stands out is the potential of AI to transform how consumers interact with eCommerce platforms. Although 63% of those surveyed are aware of these AI tools, less than half are putting them to use, signaling a significant gap between availability and active use.

AI Adoption and the Path to Enhanced Experiences

AI isn’t just about algorithms and data; it’s about enhancing the shopping experience to be more personalized and accessible. Platforms like Lazada are seeing this shift, with 80% of surveyed consumers using AI tools weekly. Popular features include chatbots, visual product searches, and language translation tools. Yet, there’s a clear need for these tools to become more user-friendly to meet rising consumer expectations in a region known for rapid digitalization.

New AI Features to Boost Lazada’s User Engagement

Lazada isn’t just observing trends; they’re setting them. They recently introduced several AI-powered features like AI Lazzie, a virtual assistant that offers personalized shopping support and 24/7 recommendations. They’ve also rolled out Message+, which sends tailored product suggestions, and Try-On Models, a virtual fitting tool that suggests sizes to reduce returns.

Rising to the Challenge in a Competitive Market

The competition in Southeast Asia’s eCommerce space is fierce, with platforms like Shopee and Tokopedia also betting big on AI. With over 160 million active online shoppers in the region, adapting and innovating are key to staying ahead. Lazada’s report underlines the need for platforms to develop more intuitive AI solutions that can truly meet consumer needs and offer added value.

As we look to the future, the role of AI in online retail is only set to grow. Platforms that can harness AI effectively will likely lead the pack, offering more tailored and engaging shopping experiences. For Lazada, this means not just adopting new technologies but refining them to create real value at every customer interaction, truly capturing the essence of modern retail driven by AI.