Southeast Asia is embracing artificial intelligence at a rapid pace, but the ways to make money from AI are far more than just having consumers pay for it.
A quarterly report on "e- Conomy SEA" released on Wednesday by Google, Temasek, and Bain & Company shows that in the past three years, the number of people adopting generative AI in this region has reached approximately 243 million.
This corresponds to 58% of the labor force, and the adoption rate is four times that of the popularization speed of mobile internet. However, only 1% to 2% of the population in this region subscribes and pays for personal AI, which highlights the gap between widespread use and direct consumer spending.
Bain Capital partner Florian Hoppe stated in an interview with CNBC that the company has found other ways to create commercial value from AI, including everything from online shopping to digital advertising.
"The realization of AI does not depend on our payment."——Bain & Company Partner Florian Hoppe
He added that companies have been using AI to improve the conversion rate of e-commerce and to handle regular customer inquiries, allowing employees to focus their energy on other tasks.
When consumers purchase and use products developed by AI, they may also be indirectly contributing to the support of AI.
The report indicates that as the Southeast Asian digital economy is expected to grow by 17% this year, reaching a total transaction volume of $368 billion in goods, and is projected to exceed $1 trillion by 2035, the commercialization space for AI is also expanding.
Hoppe also pointed out that another factor driving the enthusiasm for AI in the region is that consumers are willing to embrace new technologies; he described people as having a 'pragmatic optimism' towards AI and are willing to adopt this technology for practical benefits.
Historically, the average usage rate of major digital platforms in this region has always been among the highest in the world.
“They are very willing to try new things,” said Hoppe, describing consumers as being open to new tools and services. He also added that, in terms of individual markets, Singapore is one of the first leading markets in Southeast Asia to adopt AI.
This open attitude also extends to more autonomous uses of AI. The report shows that 75% of users are willing to let AI agents find the lowest prices and complete purchases on their behalf. At the same time, 62% of respondents indicated that they have more trust in AI tools than they did a year ago.
Despite its fast adoption rate, the frequency of Southeast Asians using AI is still much lower than in the United States, accounting for only 10% of the American level per capita.
However, for businesses, the potential returns are becoming increasingly tangible. Approximately 69% of shoppers use AI to compare complex products such as electronic goods; early case studies have shown that AI helps businesses increase conversion rates by 10% year-over-year and can boost the average spending per customer order by up to 75%.
One example is the Southeast Asian e-commerce platform Shopee. Currently, about 80% of customer inquiries on this platform are handled by AI chatbots, which has helped reduce the cost per customer interaction by 30% year-on-year.
In the field of online media, Hoppe pointed out that advertisements driven by AI and more precise targeted placement have led to a “significant increase” in ad click-through rates and conversion rates.
However, the benefits of AI are not limited to online shopping. It also helps travelers plan their itineraries, makes digital advertising more effective, and supports voice-assisted booking for ride-hailing and food delivery services.
The report states that the Southeast Asian online tourism market is expected to grow by 10% this year, with total transaction volume reaching $59 billion; online media revenue, including digital advertising and streaming, is expected to increase by 22% to reach $44 billion; while the total transaction volume for ride-hailing and food delivery services is expected to grow by 15% to reach $40 billion.
