A report by Google, Temasek and Bain & Company says Southeast Asia had about 243 million generative AI users in less than three years, equivalent to 58% of the region’s labor force, with adoption roughly four times faster than mobile internet. According to ChainCatcher, the report was covered on October 22, and only 1% to 2% of the region’s population pays for individual AI services.

Bain partner Florian Hoppe said companies can monetize AI through businesses such as e-commerce and digital advertising rather than relying solely on consumer subscriptions. AI can also improve e-commerce conversion rates and handle routine customer inquiries. The report said AI chatbots manage about 80% of customer inquiries on Shopee, reducing the cost per customer contact by 30% year over year. Early cases showed businesses using AI increased conversion rates by 10% year over year and raised average spending per order by as much as 75%.

Southeast Asia’s digital economy is projected to grow 17% year over year to $368 billion in gross merchandise value in 2026 and exceed $1 trillion by 2035. Online travel is forecast to grow 10% to $59 billion, online media revenue 22% to $44 billion, and ride-hailing and food delivery 15% to $40 billion. The region’s e-commerce market is projected to reach $226 billion in gross merchandise value in 2026, up 18% year over year.