Southeast Asia is hungry for AI
Southeast Asia's rapid AI adoption is creating business opportunities beyond paid consumer subscriptions, a partner at Bain & Company, told CNBC.
TL;DR
- Generative AI adoption in Southeast Asia has reached 243 million people (58% of the working population) in under three years.
- Only 1-2% of the population pays for personal AI subscriptions, indicating a gap between adoption and direct consumer spending.
- Businesses generate AI value through e-commerce optimization, digital advertising, and customer service automation.
- Southeast Asia's digital economy is projected to grow 17% to $368 billion this year and exceed $1 trillion by 2035.
- Consumers exhibit 'pragmatic optimism,' embracing AI for practical benefits, with 75% willing to let AI agents make purchases.
- AI is boosting e-commerce conversion rates by up to 10% and increasing average order value by up to 75%.
- Shopee uses AI chatbots to handle 80% of customer queries, reducing cost per contact by 30%.
- AI is also enhancing travel planning, digital advertising effectiveness, and voice-assisted bookings for ride-hailing and food delivery.