1 week Ago By N/A (Manila Bulletin)
Old habits die hard While online sellers are increasingly aware of the power of artificial intelligence, a significant hurdle remains in translating this knowledge into tangible benefits for their businesses. A recent study covering online merchants in Southeast Asia, including the Philippines, reveals an "AI gap." While most Filipino sellers understand AI can boost their productivity, adoption rates are considerably lower.
The report "Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in SEA" surveyed 1,214 eCommerce sellers in six key Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Lazada commissioned the report in collaboration with Kantar. The research highlights a notable "knowledge, perception, and implementation gap.
" It showed that while a strong 68 percent of sellers in the region report being aware of AI, their understanding of its practical application and the extent of its current integration appear inflated. Sellers believe AI is woven into 47 percent of their business processes, a figure that starkly contrasts with the actual adoption rate of just 37 percent. This overestimation suggests a superficial understanding or perhaps an aspirational view rather than a grounded assessment of their current technological infrastructure.
Furthermore, the report uncovers a dilemma concerning AI’s perceived efficacy and cost implications. About 89 percent of sellers acknowledge AI's potential to boost productivity, a testament to the widely publicized benefits of automation and intelligent systems. However, 61 percent remain skeptical about its overall usefulness, which indicates a potential disconnect between the theoretical advantages and the practical realities they face.
According to the report, this skepticism could stem from a lack of tangible examples relevant to their specific business needs or concerns about the complexity of implementation. The cost factor further complicates the adoption landscape. While nearly all sellers (93 percent) recognize the potential for long-term cost savings through AI-driven efficiencies, 64 percent cite the initial costliness and the time-consuming nature of implementation as major barriers.
This highlights the financial constraints and resource limitations that many small and medium-sized online sellers in Southeast Asia grapple with, making large-scale AI investments a daunting prospect. Beyond cost, the research points to an "implementation gap," where sellers, despite understanding the theoretical importance of AI, struggle with its effective deployment. A resounding 93 percent agree on the necessity of upskilling their workforce to leverage AI effectively.
However, 75 percent admit their employees prefer familiar, manual tools over new AI solutions. This resistance to change, rooted in comfort and a lack of adequate training or understanding, presents a significant impediment to seamless AI integration. Interestingly, the report reveals varying levels of AI readiness across the surveyed markets.
Indonesia and Vietnam emerge as frontrunners, boasting a 42 percent AI adoption rate across various business functions. Singapore and Thailand follow closely at 39 percent. To better understand these regional nuances, the report categorizes sellers into three distinct archetypes based on their AI adoption levels across five core operational aspects: operations and logistics, product management, marketing and advertising, customer service, and workforce management.
The "AI Adepts," representing 24 percent of Southeast Asian sellers, have integrated AI across at least 80 percent of their operations, positioning them as early adopters and potential beneficiaries of significant efficiency gains. The largest segment, the "AI Aspirants" (50 percent), have partially integrated AI but still face adoption gaps in key functions, indicating a willingness to embrace AI but a need for more guidance and support. Finally, the "AI Agnostics" (26 percent) lag in adoption, with most business functions still reliant on manual processes.
Market-specific analysis reveals that Thailand has the highest proportion of AI Adepts (30 percent), suggesting a more mature understanding and implementation of AI among its online sellers. Singapore (29 percent), Indonesia (29 percent), and Vietnam (22 percent) also demonstrate strong AI implementation despite some knowledge gaps. In contrast, Malaysia (15 percent) and the Philippines (19 percent) face greater challenges related to internal buy-in and infrastructure limitations, highlighting the need for tailored strategies to address their specific needs.
The report underscores a crucial opportunity: the majority of Southeast Asian sellers (76 percent), categorized as AI Aspirants and AI Agnostics, are actively seeking more effective AI-powered solutions. There is a significant demand for AI-powered tools (42 percent) and enhanced seller support (41 percent) to facilitate their AI adoption journey. In response to these findings, James Dong, CEO of Lazada Group, emphasizes the platform's commitment to bridging this AI gap.
"The findings from our research reveal a fascinating gap in Southeast Asia's eCommerce ecosystem. While most sellers understand AI's transformative potential, many are still navigating the path from recognition to implementation," he states. "As a leading eCommerce platform in Southeast Asia, we aim to bridge the knowledge and adoption gap by developing accessible AI solutions that address the unique challenges faced by sellers across different markets, ultimately making technology more accessible and driving sustainable business growth regardless of a seller's size or technical expertise,” he adds.
To actively support sellers in their AI adoption journey, Lazada is launching the "Online Sellers Artificial Intelligence Readiness Playbook." This resource is designed to provide strategic guidance tailored to sellers' specific AI maturity levels, offering a structured framework for integration. The report also validates Lazada's ongoing investments in AI-driven solutions, with 67 percent of sellers expressing strong satisfaction with existing AI features on the platform.
Building on this positive feedback, Lazada is introducing new Generative AI (GenAI) features aimed at further empowering sellers. These include "AI Smart Product Optimisation," which leverages GenAI to suggest improvements to product listings, automate virtual try-ons, and enhance product imagery. "AI-Powered Translations" will enable sellers to effortlessly expand their reach by automatically translating product content into local languages.
Finally, "Lazzie Seller," an AI assistant within the Alibaba Seller Centre, will provide instant support, guidance, and business advice to boost seller efficiency and growth..
