Artificial intelligence (AI) is an essential part of life, impacting all areas, including the digital economy. Recognizing this, Lazada is a leader in using AI and GenAI in eCommerce across Southeast Asia. They have launched new features based on Generative AI (GenAI) that will transform the online shopping experience, especially in preparation for the upcoming 11.11 online shopping promotion. Alongside these new AI features, Lazada has released an official report titled “Adoption of Artificial Intelligence (AI) in eCommerce in Southeast Asia,” developed with Kantar, to better understand consumer needs and behaviors regarding AI.
Lazada's latest GenAI features are integrated into AI Lazzie, which aims to make online shopping more personalized, interactive, and efficient, assisting customers 24/7. With advanced capabilities supported by Alibaba technology, AI Lazzie helps customers find products that meet their needs, offers personalized product recommendations, and answers shopping-related questions on Lazada.
“Through our research collaboration with Kantar, Lazada is dedicated to understanding and meeting customer needs for the best shopping experience. Our latest GenAI features in AI Lazzie, powered by Alibaba's AI translation technology, Marco MT, enable more natural interactions, similar to shopping with a personal assistant who helps consumers, especially during various year-end online shopping promotions at Lazada,” said Amelia Tediarjo, Head of Operations at Lazada Indonesia.
As AI and GenAI serve as key growth catalysts in online shopping, Lazada has identified four important dimensions (4D) that enhance the online shopping experience.
Discovery: Increased Product Search and Shopping Inspiration
AI is changing how customers find products by offering personalized recommendations and more efficient product searches. Research from Kantar shows that 54% of Indonesian respondents use AI for more tailored shopping suggestions. Lazada's AI features, like AI Lazzie and smart recommendation tools, help customers discover products that match their preferences and shopping history.
The report also reveals that 64% of Indonesian respondents use chatbots, which is higher than in other Southeast Asian countries. The Lazzie Chatbot is popular among online shoppers in Indonesia because it is available 24/7 and provides faster service.
Dependability: Building Trust and Loyalty through Personalized Experiences
The research indicates that AI adoption in Indonesia has reached 77%, reflecting high consumer trust and acceptance of this technology. About 53% of customers believe that AI in eCommerce makes shopping easier, with the most favored features being AI chatbots, image-based product searches, product recommendations, and review analysis.
Considering the impact of GenAI on shopping, consumers are using AI in eCommerce more than in other industries, with 85% of Indonesian customers willing to pay more for AI features on eCommerce platforms.
Ajie Santika, AI Expert and Co-Founder of Feedloop.ai, explains that this trend is driven by GenAI, which simplifies various application processes into just a few clicks. "We are already familiar with AI that can perform tasks. Now, technological advancements have introduced GenAI, which not only performs but also creates. GenAI can analyze vast data sets, learn patterns, and generate new outputs. This technology will significantly enhance productivity by streamlining processes."
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