Online sellers aware of AI, but adoption remains low

While online W sellers are increasingly aware of the power of artificial intelligence, a significant hurdle remains in translating this knowledge into tangible benefits for their businesses.

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A recent study covering online merchants in Southeast Asia, including the Philippines, reveals an "AI gap." While most Filipino sellers understand AI can boost their productivity, adoption rates are considerably lower.

The report "Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in SEA" surveyed 1,214 eCommerce sellers in six key Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Lazada commissioned the report in collaboration with Kantar.

The research highlights a notable "knowledge, perception, and implementation gap." It showed that while a strong 68 percent of sellers in the region report being aware of AI, their understanding of its practical application and the extent of its current integration appear inflated.

Sellers believe AI is woven into 47 percent of their business processes, a figure that starkly contrasts with the actual adoption rate of just 37 percent. This overestimation suggests a superficial understanding or perhaps an aspirational view rather than a grounded assessment of their current technological infrastructure.

Furthermore, the report uncovers a dilemma concerning AI's perceived efficacy and cost implications. About 89 percent of sellers acknowledge AI's potential to boost productivity, a testament to the widely publicized benefits of automation and intelligent systems. However, 61 percent remain skeptical about its overall usefulness, which indicates a potential disconnect between the theoretical advantages and the practical realities they face.

According to the report, this skepticism could stem from a lack of tangible examples relevant to their specific business needs or concerns about the complexity of implementation.