A new report from Lazada and Kantar highlights the significant gap between awareness and actual adoption of AI technology among online sellers in Southeast Asia, revealing challenges and opportunities.

Lazada, a prominent e-commerce platform in Southeast Asia, has recently unveiled findings from a research study conducted in collaboration with Kantar. The report, titled “Raising AI Gap: Perception and Trend of Adoption of Online Sellers in Southeast Asia,” aims to analyze the current trends, challenges, and business opportunities surrounding the adoption of Artificial Intelligence (AI) technology among online sellers.

The study reveals that while 70 percent of Southeast Asia’s e-commerce sellers are aware of AI technology, only 47 percent have adopted it for their operations. In Indonesia, the adoption rate is slightly lower, at 42 percent, positioning the country as the third in the region in terms of actual AI application. This discrepancy illustrates a significant gap where sellers acknowledge the potential benefits of AI yet remain hesitant to incorporate it into their business strategies.

Despite the awareness of AI’s advantages, the research indicates a prevalent skepticism among sellers, with 61 percent expressing doubts regarding the tangible benefits of AI implementation. This hesitance exists alongside a broader recognition: 89 percent of respondents acknowledged that AI could enhance productivity.

The report highlights several challenges that sellers face when considering AI adoption. Approximately 93 percent see the long-term cost-saving potential of AI; however, 64 percent cite the initial costs and the complexities involved in the implementation process as major obstacles. Sellers are also struggling with effectively integrating AI solutions, often finding it difficult to transition from manual methods to those driven by AI. This struggle indicates a prevalent preference for existing technologies.

James Dong, CEO of Lazada Group, commented on the findings, noting the “interesting gap” within the e-commerce ecosystem concerning AI adoption. He stated, “While most sellers understand the transformative potential of AI, many are still trying to transition to the implementation stage.” To address this gap, Lazada is committed to providing accessible AI solutions tailored to meet the specific challenges faced by sellers in Southeast Asia.

Dong further elaborated that the technologies developed by Lazada would be adaptable to the unique circumstances of each market, aiming to facilitate optimal business growth for sellers across the region. The report emphasized that while awareness of AI is significant, translating that awareness into effective implementation remains a critical challenge for many sellers.

Source: Noah Wire Services