Adoption of AI in ASEAN Markets

April 08, 2020 • 5 minute read

The introduction of Artificial Intelligence was meant to transform almost everything which was repetitive or which did not require a heavy human intervention. Every technology which has been invented to date had its own advantages and disadvantages but slowly and steadily the advantages always outweigh the disadvantages for the technology to survive in any market. This very own logic leads to the vast adoption of Conversational AI in the ASEAN region.

Market Insights

Organizations and consumers in the region are proud of the fact and embrace the change brought by Artificial Intelligence technology within every industry whether it is in healthcare, commerce, automobile or others. Businesses across ASEAN realize that emerging technologies such as ‘Virtual Assistants’ are best suitable for growing markets where there is a huge transition from a legacy way of business to a digital way of business.

E-commerce, for example, is one of the fastest-growing segments across ASEAN specifically in countries such as Indonesia, Singapore, and Malaysia. Businesses are keen to provide a seamless selling or customer support experience to consumers on the phone through new age channels such as WhatsApp, WeChat, Line and more.

  • Gartner predicts “By 2020, more than 50% of online sellers will either list their products on marketplaces or sell third-party products on their core commerce sites.”
  • Gartner predicts “By 2020, 25% of leading online sellers will have enabled first-generation “commerce that comes to you” capabilities.”

Personalized Assistants/Commerce on Bot

Virtual assistants reduce the manual effort and cost for the customer service division of any enterprise while giving efficient and enhanced customer assistance along with it. These assistants have the capability to personalize product recommendations, optimize pricing and do much more. The analytics and data derived through the assistants help understand the accurate preferences of customers which in turn helps to build customer loyalty. Across all the markets, Conversational AI is now being primarily adopted by various businesses in multiple sectors for improved business insights in real-time.

  • Gartner predicts “ By 2022, at least 5% of digital commerce orders will be predicted and initiated by AI.”

The fact that virtual assistants nowadays come with native Natural Language Processing engines gives great confidence to the businesses to quickly adapt to this technology. For instance, “Yellow Messenger” in Indonesia uses ‘Bahasa Indonesia based NLP’ to make sure the virtual assistants speak and understand the Indonesian language to improve customer engagement. These assistants are also powered by machine learning which allows them to understand a shortened form of a word or phrase and various slangs within the language.

Way Ahead

The demand for front-end automation has moved the focus of businesses towards cloud-scalable and customizable platforms which ensure any level of concurrency and customization as per the business needs. Conversational AI use cases are spreading across the region, but they are limited in number and scale, first in importance being customer experience. As the age-old business mantra says “Customer is king”, businesses can be confident that these assistants which come with a ‘human touch’ will make sure to maintain a robust support experience with a fast resolution time for their customers.

The rise in the adoption of AI in the ASEAN market has just begun and is not far away from becoming a disruption.

Haren Chelle

Haren is a graduate of the “Indian Institute of Technology Patna” with extensive experience in Business Strategy, Growth, Client Engagement, and Business Development in New-Age Technology solutions such as Robotic Process Automation, Conversational AI & other AI-based customized offerings. At Yellow Messenger, Haren leads the Indonesia & Singapore business operations.

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