Lazada Study: Majority Of E-commerce Sellers Need AI, But The Adoption Is Still Left Behind

JAKARTA Lazada shared the results of research developed with Kantar. This report was made to explore trends, challenges, and business opportunities in adopting Artificial Intelligence (AI) technology.

In a report entitled Raising AI Gap: Perception and Trend of Adoption of Online Sellers in Southeast Asia, Lazada revealed that 7 out of 10 sellers in Southeast Asia's e-commerce admitted that they already knew AI. The percentage reaches 68 percent.

Even though they already know about the benefits or sophistication of this technology, only 47 percent of sellers in Southeast Asia apply AI. In fact, the real application of AI in Indonesia is only 42 percent, not as big as other countries.

This makes Indonesia occupy the third country in Southeast Asia in terms of real application of AI. This lack of implementation occurs due to the dilemma felt by the sellers. Not a few doubt the effectiveness and cost of implementing AI.

The survey results also show that 61 percent of sellers still doubt the benefits of AI even though 89 percent of respondents recognize the role of AI in increasing productivity. Apart from the doubt, many sellers face challenges in adopting AI.

About 93 percent of sellers believe AI adoption can save costs in the long term, but another 64 percent say that initial costs and implementation processes are a major bottleneck in adopting the technology.

Research results also show that sellers still have difficulty implementing AI effectively. Another challenge that often occurs is the difficulty of switching from manual to AI-based solutions. The reason is, most people prefer known technology.

According to Lazada Group CEO James Dong, this report shows that there is an interesting gap in the e-commerce ecosystem regarding AI adoption. With this report being made, Lazada is committed to providing the best AI solutions for its sellers.

While most sellers understand the transformative potential of AI, many are still trying to transition to the implementation stage, James said. "We are trying to bridge this gap by providing accessible AI solutions."

James also explained that all the technology they develop can be utilized by sellers in Southeast Asia. This solution has been adapted to unique challenges in each market so that business growth can be driven optimally.