In recent years, the rise of generative artificial intelligence, or GenAI, has been a game-changer for many industries. In particular, its vast applications have unlocked a sea of possibilities and innovations for eCommerce players. Having been an early adopter of AI, Lazada, a leading eCommerce platform in Southeast Asia, is now leveraging GenAI to offer increasingly personalized experiences to customers while driving business growth for sellers.
Lazada’s Early Adoption of AI: Recommendations, Search, Delivery
Since its launch in 2012, Lazada has made significant strides in utilizing AI to enhance its platform. One of its earliest AI applications was in the area of product recommendations. Using machine learning algorithms, the platform was able to analyze user data, such as browsing history, search queries and past purchases, to suggest relevant products. By providing a more personalized shopping experience, this feature helped increase customer engagement and conversion rates.
In 2019, the platform rolled out its AI-enabled image-based search feature, allowing shoppers to effortlessly find what they wanted by simply snapping or uploading an image of the desired item. This feature built on Lazada’s existing algorithms and big data analytics and further streamlined the product-discovery process for consumers.
Also noteworthy is Lazada’s early adoption of AI in its logistics and supply chain management. With a vast network of warehouses and delivery partners across Southeast Asia, it was a complex challenge to ensure timely and efficient order fulfillment. To address this and streamline the entire logistics operations, Lazada created data-powered fulfillment processes driven by its proprietary smart-routing technology. As a result, shipping times have been reduced significantly, and the overall efficiency of the entire delivery experience has improved, providing customers with faster and better service.
GenAI: A New Frontier in ECommerce
While traditional AI models focus on analyzing and predicting user behavior, GenAI can create new content, such as product descriptions, review prompts and even a smart personal shopping assistant.
Lazada has been quick to explore the potential of GenAI to differentiate its offerings. In 2023, it launched LazzieChat, a first-of-its-kind AI chatbot that leverages Lazada’s own AI technology and the language capabilities of ChatGPT. LazzieChat can respond to shoppers’ queries in a natural manner and can also suggest relevant products or topics that may interest them.
More recently, the company rolled out a suite of new GenAI features to transform shopping and selling experiences. These include AI Lazzie – an upgraded LazzieChat that is even more integrated across the Lazada platform – as well as smart recommendations, AI-generated product information and AI-generated models. Such features aid users throughout their shopping journey in a seamless manner, allowing them to quickly and easily find and purchase products that align with their interests and needs.
AI Tools for Sellers
Extending beyond enhancing the shopper experience, Lazada’s vast AI applications also focus on empowering sellers. The platform has a range of AI tools in place to help sellers optimize their product listings, simplify the visual creation process, analyze sales data and improve their marketing strategies. For small and medium-sized enterprises in particular, these tools, such as Lazada Sponsored Solutions, have been a game-changer that has leveled the playing field for them to reach a broader audience.
One of the tools that Lazada offers to sellers is its AI-powered product description, an engaging and tailored product listing that is generated entirely and instantaneously by AI to highlight key product features that align with user preferences. Sellers often struggle with writing compelling product descriptions that can attract buyers and improve search rankings. By using this GenAI tool, they can automatically create high-quality, keyword-rich product descriptions that not only save time but can also help their products appear in relevant search results, increasing their visibility and likelihood of purchase.
Lazada has also introduced AI-driven analytics dashboards that provide sellers with real-time data on key metrics such as conversion rates, inventory levels and customer feedback. Sellers can easily use this information to refine their marketing strategies, adjust pricing and optimize inventory management.
Looking ahead, Lazada aims to further integrate AI and GenAI into its ecosystem to enhance the user experience for both buyers and sellers. The company’s vision is to create a more accessible, inclusive and personalized shopping experience for all while maintaining the human touch that remains essential to fostering authentic and lasting relationships, said James Dong, chief executive officer of Lazada Group.
“At Lazada, we have embraced GenAI as part of our customer-centric, long-term growth strategy to enhance customer experiences as we strive to stay ahead and steer into a new era of online shopping. We foresee that GenAI will accelerate an eCommerce revolution and reshape the way we currently shop, sell and engage,” Dong added. “Our goal is to make every experience sharper, more individual, efficient and enjoyable. Through these innovations, we’re not only supporting our shoppers but also empowering our sellers to make smarter, data-driven decisions from product positioning to customer engagement.”
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