SINGAPORE – MAY 31: Daily life scenes and cityscapes as seen in Singapore on May 31, 2026. Singapore, located at the southern tip of the Malay Peninsula, approximately 137 kilometers north of the equator, is a city-state known for its modern urban environment and high standard of living. The city’s integrated green spaces, multicultural community, and vibrant urban life are some of the city’s hallmarks. (Photo by: Mustafa Hatipoglu/Anadolu via Getty Images)
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The adoption of artificial intelligence is progressing rapidly in Southeast Asia. But businesses that make money from AI are about more than just getting consumers to pay for AI.
The adoption of generative AI in the region has reached approximately 243 million people in less than three years, according to the e-Conomy SEA annual report released by Google, Temasek and Bain & Company on Wednesday.
This represents 58% of the workforce and is being adopted four times faster than mobile internet penetration. However, only 1-2% of the region’s population pays for personal AI subscriptions, highlighting the gap between adoption and direct consumer spending.
Florian Hoppe, a partner at Bain & Company, said in an interview with CNBC that companies are finding other ways to drive commercial value from AI, from online shopping to digital advertising.
Monetization through AI does not depend on us paying for it.
Florian Hoppe
Bain & Company Partner
Companies are leveraging AI to improve e-commerce conversion rates and respond to regular customer inquiries, freeing up employees to focus on other tasks, he added.
Consumers may also be indirectly paying for AI when they purchase products developed using AI technology.
The findings come as Southeast Asia’s digital economy is forecast to grow 17% in gross merchandise value to $368 billion this year, with the market expected to exceed $1 trillion by 2035.
Hoppe also pointed to another factor driving the region’s enthusiasm for AI. It’s that consumers are willing to embrace new technology, showing what he describes as “realistic optimism” about AI and embracing the technology for its practical benefits.
The region has historically ranked among the most active users of major digital platforms on a per capita basis.
“They’re very experimental,” Hoppe said, explaining that consumers are open to new tools and services. He also added that in terms of individual markets, Singapore is one of the early leaders in AI adoption in Southeast Asia.
That openness extends to a more autonomous use of AI, with 75% of users willing to have an AI agent find them the best price and complete purchases on their behalf. The report also shows an increase in trust, with 62% of respondents saying they trust AI tools more than they did a year ago.
Despite rapid adoption, AI usage in Southeast Asia remains much lower than in the US, with per capita usage at only 10% of the US level.
“The Singapore dollar is typically seen as a haven currency compared to its Southeast Asian peers,” said Max Lin, Asia currency and rates strategist at Credit Suisse.
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But for companies, the potential benefits are becoming more tangible. Approximately 69% of shoppers use AI to compare complex purchases such as electronics, and early case studies show that AI is helping businesses improve conversion rates by 10% year over year and increase the average amount customers spend per order by as much as 75%.
As an example, Shopee, a Southeast Asian e-commerce platform, handles approximately 80% of customer inquiries through AI chatbots, helping to reduce cost per customer contact by 30% year-on-year.
In online media, Hoppe noted that AI-powered advertising and improved targeting has resulted in “significant increases” in ad click-through rates and conversions.
But the benefits extend beyond online shopping. AI is helping travelers plan their trips, making digital advertising more effective, and enabling voice-assisted reservations for ride-hailing and food delivery services.
Southeast Asia’s online travel market is expected to increase in gross merchandise value by 10% to $59 billion this year. Revenue from online media, including digital advertising and streaming, is expected to grow 22% to $44 billion, while total distribution value from ride-hailing and food delivery is expected to grow 15% to $40 billion, according to the report.
