Singapore, 19 June 2025 — High adoption of generative AI could unlock US$131 billion annual value in Southeast Asia’s ecommerce ecosystem, according to a new report jointly released by Momentum Works and Lazada.
The report, entitled “Transforming ecommerce with AI: Sell smarter and shop better”, highlights how generative AI is rapidly transforming the ecommerce landscape across Southeast Asia.
The additional GMV could be fully unlocked through full AI integration across their ecommerce value chain—leveraging tools such as advanced personalisation engines, dynamic pricing algorithms, predictive logistics, and AI-enhanced cross-border operations.
The report projects Gen AI adoption in ecommerce in three different scenarios: high adoption, medium adoption and low adoption. Under the high adoption scenario, the aggregate ecommerce GMV for Southeast Asia would reach US$413 billion, or US$131 billion higher than in the low adoption scenario. This would bring the ecommerce penetration in the region to around 24%.
“Platforms like Lazada have gone beyond chatbots and content generation to embed AI in the full ecommerce experience, an intermediate step towards full AI-native ecommerce platforms ,” said Jianggan Li, CEO of Momentum Works. “Across the ecommerce ecosystem, we are seeing a widening gap between early adopters who are driving performance gains and those who risk being left behind.”
Alibaba and Lazada at the Forefront
Driving this transformation is Alibaba Group, which has committed over US$50 billion to advancing AI and cloud infrastructure globally. As Alibaba’s Southeast Asian ecommerce arm, Lazada is leading the deployment of generative AI at scale—offering sellers a suite of tools that are already delivering real, measurable results.
A New AI-Native Future for Ecommerce
The report outlines a clear shift underway: ecommerce is quietly evolving from merely AI-assisted features (chatbots, customer service, content creation etc.) to fully AI-native platforms—where customer journeys are hyper-personalised, seller tools are automated, and platforms adapt dynamically in real time.This shift is not in the distant future – part of it is already happening in Southeast Asia with platforms embedding more AI into interfaces with sellers, consumers and everyone else. Sellers who adopt early and resolutely are not only gaining a competitive edge—they are actively shaping the next generation of ecommerce.
“We see tremendous potential for AI applications in the ecommerce space.” said Freya Dong, Head of AI Products, Lazada Group. “The question is no longer if AI will transform ecommerce, but who will lead and capture the growth it unlocks.”
Some key report findings:
- US$131B opportunity: Under the high adoption scenario, the aggregate ecommerce GMV for Southeast Asia would reach US$413 billion, or US$131 billion higher than in the low adoption scenario by 2030—representing a potential 47% uplift for the region.
- Consumers ahead of sellers: 91% of consumers already use AI for product discovery and 88% rely on it for purchase decisions. In contrast, only 26% of sellers use AI across their operations.
- Lazada’s AI suite delivers real business outcomes. Lazzie—AI shopping assistant that drives a 68% increase in conversion; AI-Powered UGC—Prompts user reviews and questions, boosting photo-based reviews by 177%; Smart Listing—Auto-generates AI images, titles, and descriptions, powering product listing pages; LISA— Seller-facing chatbot that increase order conversion rate by 40% and positive reviews by 24%; AI Translation—Listing translation that enables seamless localisation across 15 languages.
- The new ecommerce flywheel: Deeper adoption of AI helps sellers unlock better prices, which leads to better customer experience, and subsequently better conversion—fueling marketplace expansion and operational optimisation. This, in turn, enables more personalisation, reinforcing the cycle of AI-led ecommerce growth.
Practical Steps for Sellers
The report introduces the POP-Leadership framework—Product, Organisation, People, and Leadership—as a strategic guide for sellers looking to integrate AI sustainably. Developed by Momentum Works and INSEAD chair of strategy area Professor Guoli Chen, the framework encourages companies to empower internal champions, iterate rapidly with GenAI, and rethink team structures in the age of intelligent automation.
About the Report
Transforming ecommerce with AI: Sell smarter and shop better is the latest release in the Momentum Works Ecommerce in Southeast Asia series, providing in-depth insights for platforms, brands, and sellers navigating the evolving AI landscape.
You can get a complimentary copy of the report here.
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About Momentum Works
Momentum Works, headquartered in Singapore, is a venture outfit that leads insights on the digital ecosystem in emerging markets, through research, consultancy, community engagement and venture building.
Momentum Works is the go-to source for comprehensive expertise in navigating the evolving landscape of emerging markets, especially in digital commerce, new retail, and technology-driven transformation.
About Lazada Group
Lazada Group is Southeast Asia’s pioneer ecommerce platform. For the last 13 years, Lazada has been accelerating progress in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam through commerce and technology. Today, a thriving local ecosystem links about 160 million active users to more than one million actively-selling sellers every month, who are transacting safely and securely via trusted payments channels and Lazada Wallet, receiving parcels through a homegrown logistics network that has become the largest in the region.
