AI adoption still lags among Southeast Asia's online sellers, Lazada report finds

A new report by Lazada, in collaboration with Kantar, reveals that while a majority of eCommerce sellers in Southeast Asia are familiar with artificial intelligence (AI), there remains a significant gap between awareness and meaningful adoption.

The study, titled "Bridging the AI Divide: Online Seller Perceptions and Adoption Trends in Southeast Asia," surveyed 1,214 eCommerce merchants across six countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. It offers a comprehensive look into how AI is perceived, adopted, and integrated across the region's digital marketplace.

While 68% of online sellers in the region claim to be familiar with AI, the study finds that only 37% have implemented it in practical business operations. In Indonesia, for instance, 52% of respondents said they were already using AI, but actual integration is estimated at just 42%, making it one of the countries with the largest discrepancy between perception and practice.

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Sellers across the board recognise AI's potential: 89% say it boosts productivity, and 93% believe it can help reduce costs over time. However, cost and time-consuming implementation processes remain critical barriers, cited by 64% of respondents.

"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," said James Dong (pictured), CEO of Lazada Group.

"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."

Mixed readiness across the region

Indonesia and Vietnam lead the region with 42% adoption of AI across business functions, ahead of Singapore and Thailand (both at 39%). Lazada's report breaks down AI readiness into five core functions: operations and logistics, product management, marketing and advertising, customer service, and workforce management.

Sellers were grouped into three categories based on their level of AI adoption. The first group, AI Adepts, consists of those who have integrated AI across more than 80% of their operations—making up 24% of sellers across Southeast Asia and 29% in Indonesia. The second group, AI Aspirants, includes sellers who have partially implemented AI but still face notable gaps in core business functions; this group accounts for 50% both regionally and in Indonesia. Lastly, AI Agnostics are those who continue to rely heavily on manual processes, representing 26% of sellers in the region and 21% in Indonesia.

Thailand leads in the proportion of AI Adepts at 30%, followed closely by Singapore and Indonesia (both 29%). Malaysia and the Philippines lag behind, hindered by limited infrastructure and support.

Overall, 76% of respondents fall into the AI Aspirants or Agnostics groups—suggesting that most businesses still need considerable support to fully leverage AI capabilities.

Tackling challenges with education and practical tools

Sellers cite a lack of employee readiness as a major obstacle. While 93% agree that upskilling their workforce in AI is critical, three-quarters report that their teams still prefer familiar tools over new AI-driven solutions.

To address this, Lazada has launched the Online Sellers Artificial Intelligence Readiness Playbook, a tailored guide offering strategies and best practices for integrating AI into daily operations. It builds on existing AI capabilities within the Lazada platform, which are already yielding results—67% of sellers express high satisfaction with Lazada's AI features.

Lazada is also introducing a suite of next-generation AI tools aimed at streamlining seller operations and boosting customer conversion.

The AI Smart Product Optimisation tool assists sellers in enhancing their product listings by refining titles, descriptions, and visuals, with capabilities such as background editing and automated model adjustments. The AI-Powered Translations feature automatically translates product content into various local languages, enabling sellers to broaden their market reach with ease.

Additionally, Lazzie Seller, an AI assistant embedded within the Alibaba Seller Centre, responds to common queries, assesses store risk, and provides data-driven business recommendations to support growth and efficiency.

These tools aim to remove the complexity from AI adoption and encourage more sellers—regardless of business size—to embrace innovation.

This latest report follows Lazada and Kantar's earlier research on AI awareness and consumer preferences across the region. Together, the studies underline the importance of structured support and continuous innovation to ensure Southeast Asia's digital economy stays competitive.

With more than one million active sellers and 160 million consumers connected through its platform, Lazada continues to invest in infrastructure, tools, and education to future-proof the region's digital commerce ecosystem.

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