Many online sellers in Southeast Asia are facing significant challenges in adopting artificial intelligence (AI) technologies, despite high awareness and belief in their potential to improve business outcomes, according to a new research report published by Lazada Group in partnership with Kantar.
The report, titled Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in Southeast Asia, surveyed 1,214 ecommerce sellers across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. It found that while 68% of sellers say they are familiar with AI, actual implementation across business operations averages just 37%.
Sellers believe they’ve integrated AI into 47% of their processes, highlighting a notable gap between perceived and actual adoption.
“The findings from our research reveal a fascinating gap in Southeast Asia’s eCommerce ecosystem,” said James Dong, CEO of Lazada Group. “While most sellers understand AI’s transformative potential, many are still navigating the path from recognition to implementation.”
Despite near-universal agreement on AI’s long-term benefits — 93% believe it will lower costs and 89% say it will boost productivity — sellers cite prohibitive costs and complexity as persistent roadblocks. Two-thirds (64%) say implementation is too expensive or time-consuming, and 61% remain uncertain about AI’s overall usefulness.
The value of AI in Southeast Asia ecommerce
Dong said Lazada is taking steps to address these issues.
“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,” he said.
The study also shows wide disparities in AI readiness by country. Indonesia and Vietnam lead in average adoption rates at 42%, followed by Singapore and Thailand at 39%. Malaysia and the Philippines lag, with sellers in those markets pointing to a lack of internal expertise and inadequate infrastructure as major barriers.
Based on their levels of adoption across five core areas — operations and logistics, product management, marketing and advertising, customer service, and workforce management — sellers were grouped into three categories:
- AI Adepts (24%). Businesses that have integrated AI into at least 80% of their functions.
- AI Aspirants (50%). Sellers with partial AI integration but adoption gaps in key functions.
- AI Agnostics (26%). Those with little or no AI still rely on manual processes.
Thailand had the highest proportion of Adept sellers (30%), followed by Singapore and Indonesia (29% each), suggesting higher levels of digital maturity in these markets. Malaysia and the Philippines had the lowest proportions of Adepts at 15% and 19%, respectively.
Sellers expressed strong interest in further AI integration, with 42% seeking new AI-powered tools and 41% wanting more targeted support. Still, workforce readiness remains a hurdle: 93% of respondents said AI upskilling is important, yet 75% said employees continue to prefer familiar manual tools over new AI systems.
To support adoption, Lazada is also rolling out new GenAI-powered tools.
Generative AI tools from Lazada
- AI Smart Product Optimization. Enhances listings with better titles, images, and descriptions.
- AI-Powered Translations. Automatically localize product content across markets.
- Lazzie Seller. In-platform assistant offering business advice and navigation support.
Lazada said its platform already provides several AI features that are seeing strong seller engagement. For example, half of sellers actively use Lazada Business Advisor, an AI-powered analytics tool, and more than 60% report strong satisfaction with GenAI-enabled listing and engagement tools.
“Technology alone is not enough,” Dong added. “Sellers need practical support, workforce training, and easy-to-use tools that fit the realities of their business. That’s where we’re focused.”
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