Southeast Asia has seen 243 million people adopt generative AI in under three years, according to the annual e-Conomy SEA report released by Google, Temasek and Bain & Company. This figure represents 58% of the region's working population, a pace of adoption that is four times faster than the earlier uptake of mobile internet. However, direct consumer spending on personal AI subscriptions remains minimal, with only 1% to 2% of the population currently paying for such services.
Florian Hoppe, a partner at Bain & Company, stated in an interview with CNBC that businesses are capturing AI's commercial value through channels other than consumer subscriptions. Companies are deploying the technology to improve e-commerce conversion rates and handle routine customer inquiries, which allows employees to redirect their focus to other tasks. Hoppe noted that consumers may also be paying indirectly for AI when they purchase products developed using the technology.
The report projects that Southeast Asia's digital economy will grow 17% this year to reach $368 billion in gross merchandise value. The market is expected to exceed $1 trillion by 2035. Hoppe attributed the region's enthusiasm for AI to what he described as "pragmatic optimism," where consumers embrace the technology for its practical benefits. He added that Singapore is among the region's early leaders in AI adoption.
User behavior indicates a growing willingness to cede control to AI systems. The report found that 75% of users are willing to let AI agents find the best prices and complete purchases on their behalf. Confidence in these tools is also rising, with 62% of respondents saying they trust AI more than they did a year ago. Despite this momentum, per-person usage in Southeast Asia remains at just 10% of U.S. levels.
For businesses, the financial returns are becoming more tangible. Approximately 69% of shoppers use AI to compare complex purchases such as electronics. Initial examples indicate that artificial intelligence is helping firms lift conversion rates by 10% year on year while raising the average order value by up to 75%. Shopee, a Southeast Asian e-commerce platform, now handles approximately 80% of customer queries through AI chatbots, a shift that has helped cut its cost per customer contact by 30% year on year.
Hoppe also pointed to a "significant uplift" in advertising click-through rates and conversions driven by AI-powered targeting in online media. The benefits extend beyond retail to travel and logistics, where AI assists with trip planning, voice-assisted bookings for ride-hailing, and food delivery. The report projects that Southeast Asia's online travel market will grow 10% this year to $59 billion in gross merchandise value. Online media revenue is expected to rise 22% to $44 billion, while ride-hailing and food delivery are forecast to grow 15% to $40 billion.