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Business

Pinoy online sellers lag behind in AI use

Louella Desiderio - The Philippine Star
Pinoy online sellers lag behind in AI use
Stock image of gadgets.
Image by fancycrave1 from Pixabay

In Southeast Asia

MANILA, Philippines — The Philippines has one of the lowest adoption rates of artificial intelligence (AI) among Southeast Asia’s e-commerce sellers due to concerns on its usefulness and costs, according to Lazada.

The research undertaken by Lazada in collaboration with global market research company Kantar covered 1,214 sellers from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam in February to look at AI adoption trends, challenges and opportunities among e-commerce sellers in Southeast Asia.

The report showed that only 35 percent of sellers in the Philippines are fully embracing AI, among the lowest in Southeast Asia.

The percentage of those fully embracing the technology reached 65 percent in Thailand, 58 percent in Singapore, 54 percent in Vietnam, 42 percent in Indonesia and 32 percent in Malaysia.

It also showed that actual adoption of AI in e-commerce in the Philippines is at 32 percent, behind Vietnam and Indonesia, which are both at 42 percent as well as Thailand and Singapore (39 percent), but ahead of Malaysia’s 26 percent.

In terms of AI features, Filipino sellers are more likely to use AI chatbot at 66 percent and generative AI at 37 percent.

Filipino sellers are cautious in adopting AI technology with 53 percent skeptical of its usefulness.

The report also showed that cost is another factor affecting AI adoption with 55 percent of Filipino sellers finding it costly and time-consuming.

Filipino sellers also face challenges in transitioning from manual processes with 67 percent preferring to use tools they are familiar with.

“The Philippines is following a similar path as Malaysia, where infrastructure development trails behind customer service and marketing and advertising,” the report said.

As the Philippines excels in Al tool knowledge, the report said a focus on infrastructure investment could bridge the adoption gap.

Lazada Group CEO James Dong said the findings show 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,” he said.

To help sellers in their AI adoption journey, Lazada is launching the Online Sellers Artificial Intelligence Readiness Playbook.

“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,” Dong said.

SOUTHEAST ASIA

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