ONLINE SELLERS from the Philippines are lagging the region in the adoption of artificial intelligence (AI), according to Lazada Philippines.
“Filipino sellers are on a slower adoption curve for AI vs. the rest of Southeast Asia, but we see that actual adoption is already currently focused on certain aspects of their business operations like customer service and marketing and advertising,” according to Pauline Castro, head of user product operations at Lazada Philippines.
“AI is helping Filipino sellers in the form of chatbots, order tracking, and multichannel interaction, as well as for predictive analytics, social media marketing, and content creation,” she added.
According to Lazada’s Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in Southeast Asia report, 3% of the Filipino sellers said they avoid relying on AI, while 5% expressed caution.
Meanwhile, only 35% of the Filipinos said they fully embrace AI, lagging the 48% regional average.
In terms of actual AI adoption in businesses, the rate is 32% among Filipino sellers and 37% in Southeast Asia.
Ms. Castro said sellers from the Philippines face a number of challenges in AI adoption, as with other emerging technologies.
“About half of the surveyed Filipino sellers from our research indicate that they are unsure about the usefulness of the technology, as well as the cost and time required to adopt it,” she said.
“Filipino sellers also face challenges in transitioning from familiar, manual processes to AI-driven solutions; while nearly all sellers agree on the importance of upskilling, the majority concede that employees still prefer tools they are familiar with,” she added.
Some 80% of sellers from the Philippines consider AI to be critical in increasing productivity, while 91% see AI cost savings in the long run. The corresponding Southeast Asian averages are 89% and 93%, respectively.
“This disparity points to their dilemma of having short-term reservations while still believing in AI’s long-term gains,” said Ms. Castro.
The study also revealed that with high familiarity and caution towards AI, the Philippines sits in the yellow zone, which signifies the need for resources to be invested in infrastructure implementation.
“While infrastructure development trails behind, we still excel in AI tool knowledge, suggesting that a focus on infrastructure investment is needed to bridge the adoption gap,” she said.
However, she said the use of AI in inventory tracking and classification is a positive sign for the automation of infrastructure.
“Sellers could also consider investing in AI-powered surveillance and warehouse management to cement their foundation,” she added. — Justine Irish D. Tabile