From providing personalized recommendations to coming up with at-home skin diagnostics, artificial intelligence (AI) has been driving innovation and transforming online shopping experiences for both buyers and sellers in Southeast Asia across a range of applications.
For example, when eCommerce giant Lazada introduced its AI-enabled image-based search back in 2019, it allowed shoppers to effortlessly find what they wanted by simply snapping or uploading an image of the desired item. Powered by deep learning and big data analytics, this application has streamlined the product-discovery process for users. The efficiency and popularity of this application is evident in the fact that AI-powered search recommendations account for more than half of Lazada’s total user transactions on the platform.
Other AI applications on Lazada include the ChatGPT-powered LazzieChat, an intelligent chatbot that can responds to users’ questions and act as personal shopper that provides tailored suggestions and product recommendations. Similar technology is employed in Lazada’s Skin Test function, which enables beauty lovers to run a skin diagnosis and analysis using their phone cameras. Users will then receive recommendations for relevant products based on the results of their diagnosis.
Beyond enhancing the shopping experience for consumers, AI has been a game-changer for sellers, too. By leveraging predictive analytics and machine learning algorithms, eCommerce sellers can optimize inventory management, minimize shipping costs and streamline order fulfilment processes. This not only boosts efficiency but also empowers sellers to deliver a seamless experience to their customers, driving loyalty and repeat purchases. Furthermore, AI technology has also proven effective in driving down returns; according to findings, 89% of eCommerce businesses that adopted AI report a 15% reduction in return-related costs and a 20% increase in customer satisfaction.
As technology continues to evolve, so too will the possibilities to provide richer and more engaging solutions and experiences.
“Online shopping journeys are becoming more dynamic with the help of technology. We want to bridge the gap between offline and online shopping by providing high-quality experiences that consumers love, and create value for brands and sellers who can tap into new technologies to reach out to a wider audience,” said Howard Wang, Chief Technology Officer of Lazada Group. “We are confident AI will drive new developments in making online shopping and selling a seamless daily activity for everyone.”
Featured image by rawpixel.com on Freepik.
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