The adoption of generative artificial intelligence (GenAI) is transforming the industry with innovative customer-centric and seller-enablement features – from generating customised product descriptions and unique customer reviews to creating personalised shopping experiences, providing 24/7 customer support, and optimising supply chains.
For example, GenAI-powered chatbots, such as LazzieChat used by Lazada, offer instant and intelligent customer interactions in multiple languages. Here, it acts as a personal shopper to tailor search results and personalised recommendations. It uses artificial intelligence (AI) algorithms to accurately capture shoppers’ needs and partake in the decision-making process with product summaries and comparisons. Most notably, this feature serves as a useful bridge in a culturally diverse region such as Southeast Asia, allowing Lazada to deliver personalised and authentic customer experiences in a timely manner.
Additionally, Lazada’s AI-powered technology offers augmented reality (AR) skin diagnostics, providing customised solutions for shoppers.
The recent surge in digital growth across Southeast Asia has brought ecommerce to unprecedented heights. We are talking about a projected total of USD 186 billion gross merchandise value (GMV) coming from the ecommerce sector across six Southeast Asian markets (Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam) by 2025 – or 62.8% of the regional USD 296 billion digital economy, according to the latest e-Conomy report by Temasek, Bain & Company, and Google.
This has propelled ecommerce into a new era, as the priority shifts towards profitability and commercialisation for sustainable long-term growth. Today, we are witnessing the dawn of the profitability phase, fuelled by advanced technologies like GenAI – which enables greater efficiencies and creates significant uplift for all the players in terms of usability, engagement, and benefits.
To stay future-ready, businesses need to prioritise long-term, holistic metrics like daily and monthly active users, customer satisfaction, and retention rates. These provide a more comprehensive view of user engagement, platform health, and long-term success. GenAI plays a pivotal role here, enabling businesses to personalise user experiences, automate customer service, and optimise content creation to foster customer loyalty and seller empowerment. This holistic approach will better position ecommerce platforms to meet the changing needs of consumers and sellers, ensuring resilience and success in the new era of digital commerce.
The advent of GenAI in ecommerce will transform customer experiences. Tapping into GenAI’s expertise in distilling large volumes of data can play a key role in enhancing product listings, such as summarising customer reviews and extracting product selling points.
GenAI has enabled Lazada to offer more dynamic content – for example, AI-generated product descriptions and images tailored to different regions, languages, and cultural nuances –, ensuring that shoppers feel a deeper connection with the products.
As they use natural language processing (NLP) and machine learning (ML), AI-powered chatbots, such as our LazzieChat, can understand and respond to inquiries in multiple languages, 24/7. These capabilities are particularly valuable in Southeast Asia, where linguistic and cultural diversity is vast.
For sellers, this would mean a significantly lower barrier to entry. For example, AI-generated models can be applied to fashion products to offer a more accurate representation so that shoppers purchase with greater confidence, while sellers can reduce marketing costs and drive conversions.
According to a Google and Temasek report, AI integration will contribute USD 130 billion to the ASEAN economy by 2025, underscoring its potential to revolutionise ecommerce operations and customer engagement. So it shouldn’t come as a surprise that many Southeast Asian ecommerce companies have already started to adopt some form of AI into their businesses. GenAI has increasingly redefined how businesses operate, as well as how they innovate, scale, and interact with customers and partners. This will bring forth more immersive and consumer-centric experiences as businesses adopt AI and AR to create interactive shopping experiences, allowing shoppers to interact with products in ways that were previously unimaginable.
Additionally, the ecommerce sector will increasingly focus on sustainability, driven by consumer demand for eco-friendly practices. By 2024, platforms that offer sustainable options and reduce packaging waste will gain a competitive edge. Enhanced security and privacy measures will also become paramount, as consumers seek platforms that protect their personal data. We believe companies that champion a long-term and customer-centric strategy will thrive in the evolving ecommerce landscape.
This editorial piece was first published in The Paypers' Global Ecommerce Report 2025, which provides a complete overview of key trends and strategies to help businesses worldwide succeed. Download your free copy today to explore in-depth insights on global ecommerce trends, the latest innovations in payment solutions, and strategies to stay ahead in a competitive market.
James Dong has been the Chief Executive Officer of Lazada Group since June 2022 – and of Daraz Group since January 2024. Previously, he led Lazada’s Thailand, Vietnam, and Indonesia operations, after joining in June 2018. Before Lazada, James was the Head of Globalisation Strategy and Corporate Development – and Chief of Staff at Alibaba Group, shaping Alibaba’s international ecommerce strategy. Prior to Alibaba Group, James was an Associate Partner at McKinsey’s digital practice, specialising in digital transformation strategies and helping businesses leverage technology to improve operations and drive growth. James Dong holds an MBA from Cambridge University.
Founded in 2012, Lazada Group is the leading ecommerce platform in Southeast Asia. We are accelerating progress in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam through commerce and technology. With the largest logistics and payments networks in the region, Lazada is part of our consumers’ daily lives in the region, and we aim to serve 300 million shoppers by 2030. Since 2016, Lazada has been the Southeast Asia flagship platform of Alibaba Group, powered by its world-class technology infrastructure.
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