LAZADA, a leading e-commerce platform in Southeast Asia (SEA), published its research report on online sellers, "Bridging the AI gap: Online seller perceptions and adoption trends in SEA."
Developed in collaboration with Kantar, the report surveyed 1,214 e-commerce sellers across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam to examine artificial intelligence (AI) adoption trends, challenges and opportunities, shedding light on sellers' readiness to integrate AI into their operations.
Knowledge, perception and implementation gap evident among online sellers
The research revealed that online sellers in Southeast Asia showed strong familiarity with AI with nearly 7 in 10 sellers (68 percent) indicating that they were aware of AI. Sellers believed they had integrated AI into 47 percent of their business operations even though actual adoption stood only at 37 percent, highlighting a clear gap between perceived and actual AI adoption.
Online sellers faced a dilemma in terms of assessing AI efficacy and its cost implications. While 89 percent acknowledged AI's role in boosting productivity, almost two-third (61 percent) remained sceptical about its overall usefulness. Furthermore, although nearly all sellers (93 percent) agreed that AI could drive long-term cost savings, 64 percent cited costliness and time-consuming implementation as barriers to adoption.
The research also suggested an implementation gap, where sellers understood the importance of AI but struggled with effective deployment. Highlighting the challenge of transitioning from familiar, manual processes to AI-driven solutions, nearly all sellers (93 percent) agreed that it would be important to upskill the workforce to use AI in order that they could be more productive. Yet, three out of four sellers (75 percent) also conceded that their employees still preferred to use tools they were familiar with rather than new AI solutions.
AI-readiness level varies across markets
Across the region, Indonesia and Vietnam led with 42 percent AI adoption across business functions while Singapore and Thailand followed closely at 39 percent.
Based on the level of AI adoption across five core aspects of operations of a seller's business — namely operations and logistics, product management, marketing and advertising, customer service and workforce management — the report identified three distinct seller archetypes: AI adepts, AI aspirants and AI agnostics, based on the average score they attained in each aspect of operations to represent their readiness level to embrace AI.
AI adepts referred to sellers who had integrated AI across at least 80 percent of their operations, placing them at the forefront of adoption. In Southeast Asia, only one in four (24 percent) sellers belonged to this category.
AI aspirants referred to sellers who had partially integrated AI into their operations but still faced adoption gaps across key functions. Fifty percent of sellers in Southeast Asia belonged to this category.
AI agnostics comprised the remaining 26 percent of surveyed sellers in Southeast Asia. This group lagged in AI adoption; with most business functions still handled manually.
Findings indicated that Thailand had the highest share of AI adepts with 30 percent of sellers in this category. Singapore (29 percent), Indonesia (29 percent) and Vietnam (22 percent) also demonstrated strong AI implementation despite knowledge gaps while Malaysia (15 percent) and the Philippines (19 percent) faced challenges related to internal buy-in and infrastructure limitations.
With the majority of Southeast Asian sellers (76 percent) falling within the AI aspirants and AI agnostics categories, they had been actively seeking more effective AI-powered solutions with high demand for AI-powered tools (42 percent) and enhanced seller support (41 percent).
"The findings from our research reveal a fascinating gap in Southeast Asia's e-commerce ecosystem. While most sellers understand AI's transformative potential, many are still navigating the path from recognition to implementation," said James Dong, CEO of Lazada Group.
Dong added, "As a leading e-commerce 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."
Leveraging Lazada's AI-driven solutions to transform business operations
To support sellers in their AI adoption journey, Lazada launched the Online Sellers Artificial Intelligence Readiness Playbook, designed to provide strategic guidance, based on sellers' AI maturity levels.
The research revealed that sellers had already been leveraging key AI-driven solutions on Lazada's platform to enhance their efficiency, validating Lazada's continuous investments into cutting-edge AI innovations and advanced tools that streamlined e-commerce operations and drive competitiveness.
With 67 percent of sellers expressing strong satisfaction in existing Lazada AI features, Lazada also released new generative AI (GenAI) features that were designed to empower sellers and enhance their product listings, streamline operations and boost customer conversions. This included the following:
AI smart product optimisation
Powered by GenAI, this tool would help sellers identify improvements they could make to their product titles, descriptions or even photos. It would enable automated virtual try-ons, background modifications and model adjustments, allowing sellers to produce professional product imagery quickly within minutes.
AI-powered translations
This feature would automatically translate product content into multiple local languages, enabling sellers to expand their reach across diverse markets efficiently and accurately.
Lazzie Seller
A dedicated AI assistant within the Alibaba Seller Centre or ASC, Lazzie Seller could provide instant responses to frequently asked questions, quick navigation to key features, store risk assessments and business advice to boost seller efficiency and growth.
To find out more, download the Online Sellers Artificial Intelligence Readiness Playbook to understand how these solutions could offer a structured framework for sellers to integrate AI into their workflows to drive growth, efficiency and innovation in an ever-evolving e-commerce landscape.