Southeast Asia's generative AI users reach 243 million, report shows

Huoxing Finance reports, according to Caixin on October 22, a joint report by Google, Temasek, and Bain & Company reveals that generative AI users in Southeast Asia have reached approximately 243 million in less than three years, equivalent to 58% of the region’s working-age population, with an adoption rate roughly four times faster than that of mobile internet. Only 1% to 2% of the local population pay for personal AI services. Florian Hoppe, partner at Bain & Company, stated in an interview that businesses can commercialize AI through e-commerce, digital advertising, and other channels without relying solely on direct consumer payments, while also leveraging AI to improve e-commerce conversion rates and handle routine customer inquiries. The report notes that Shopee’s AI chatbots handle about 80% of customer inquiries, reducing the cost per customer contact by 30% year-over-year. In early use cases, companies applying AI saw a 10% year-over-year increase in conversion rates and up to a 75% increase in average order value. The report also forecasts that Southeast Asia’s digital economy will see a 17% year-over-year growth in gross merchandise value to $368 billion by 2026, with potential to exceed $1 trillion by 2035. Among these sectors, the online travel market is expected to grow 10% to $59 billion, online media revenue is projected to rise 22% to $44 billion, and the ride-hailing and food delivery market is anticipated to expand 15% to $40 billion. Southeast Asia’s e-commerce gross merchandise value is forecasted to reach $226 billion in 2026, up 18% year-over-year.