Southeast Asian small businesses using AI to stay competitive

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Southeast Asian small businesses using AI to stay competitive

2025-06-26 02:54:19

The flags of the ASEAN member states outside the Pullman Hotel, the place of a meeting of foreign ASEAN ministers in Luang Brabang, Laos, in January 2024.

Tang AFP | Gety pictures

The United States and China are usually at the height of the mind when it comes to artificial intelligence and the Toyodic AI. Experts say small companies in Southeast Asia have huge potential that should not be ignored.

In fact, it is the issue of survival, according to Jochen Wirtz, a professor of marketing at the College of Business Administration at the National University of Singapore, and who said that those who are behind them “will move to a franchise company or will be expelled from the market by larger players who do so.”

“Either you grow and adopt, or die,” he added.

AI and Genai will contribute about $ 120 billion in the region’s GDP by 2027 Open the capabilities of Amnesty International in Southeast Asia, “ Which referred to technology capabilities to “redefine commercial processes and cancel the new revenue flows.” and Google 2024 report I found that Singapore, the Philippines and Malaysia are classified among the top 10 globally for research and demand related to the prosecution, which indicates “curiosity” and “active attention” within the region.

Young advantage. Among the countries surveyed in the Asia Pacific, Vietnam, Malaysia, and the Philippines have the highest percentage of business owners or leaders under the age of 40. Wiping small business in CPA Australia 2024-25.

“For countries like Vietnam,” said the assistant program director of the Professional Communications Program at the College of Communications and Design at the University of RMIT in Vietnam.

Below is how some companies use them in the region to stay at the top of the competition – as well as the opportunities and road barriers they face.

The most popular use cases

Customer service is the leading state of use in e -commerce in Southeast Asia, followed by marketing and advertising, according to A joint report on Lazada and Kantar About trends to adopt artificial intelligence in the largest six economies in Southeast Asia. Also known as Asean-6, it includes Singapore, Malaysia, Vietnam, Indonesia, the Philippines and Thailand.

A McKinsey Survey In March, a similar trend revealed: Genai companies have adopted marketing and sales, as technology companies lead these fees. It also showed that most adopters use technology to create a text, as it has reached 63 % of the polls included in the survey.

Genai offers a unique grace to a variety of linguistic terms such as Southeast Asia: Regardless of writing personal marketing messages, it can also translate promotional texts into different languages.

For example, Lita Global, a social media platform in Indonesia, takes advantage of the players a lot. Since the combination of Openai’s models in the second half of last year, he said, I have been able to host nearly twice the number of events on the Internet per month, thanks to greater efficiency.

The company said this is a big boost of its work, because every event can collect weekly revenues by 20 % on average.

With Genai, employees can translate ads about events from English into Southeast Asian languages, such as Vietnamese and Thai, to reach more users in the region. This is liberated-the time can now be used to write, translate and coordinate the promotional text to organize more events generated for revenues, according to Lita Global.

The company also uses Genai in its chat function to recommend responses for users. Lita Global is a social platform where users can rent other players to play with them online.

Players are usually represented by chanting chat with users before submitting an application for a game session. But this may be difficult when the demand for players is high and players for rent are busy with other matches. Jeho Zhang, CEO of Lita Global, said that players for renting who use the recommended responses of artificial intelligence have witnessed a 10 % increase to 20 % in requests.

“So we use artificial intelligence to really help them improve their efficiency, to help them be more users,” said Zhang.

Another way can be the Middle East Asia (small, small and medium enterprises) to use Genai to market through Ai Livestreaming. The Google Electronic Environmental Report indicated that direct shopping has become more popular in the region. Live shopping, or live broadcast usually includes, adding products for sale. Not only does this include clothing attempts, but shoppers can also ask questions in the comments section, which are answered in actual time.

While the live broadcast is traditionally hosted by humans in studios, MSMES may lack money or technical knowledge to implement the normal live broadcast to increase sales. Ginsen Woo, CEO of Topviewai, said that Ai Livestreaming can open the doors to the new opportunities for sellers.

TopViewai says on its website that its living in artificial intelligence can cost about one dollar per minute. Instead of spending on rented studio, samples of goods and the work of the human hosts, companies can have one person who monitors live broadcast. He added that this helps to reduce costs with increased sales, which makes a “very good” return to invest.

Cost problem

Efficiency batch does not come cheap, however.

For this reason, small companies are limited to adopting artificial intelligence on a small scale at the present time. For example, the use of Chatbots AI for relatively simple tasks can reduce employment costs because subscriptions for these services tend to be inexpensive. Moreover, with a variety of third -party tools available on the market, business owners can also choose them, according to RMITNAMOS Parida.

Parida said that small companies in fashion, food and beverage industries in Vietnam, for example, started using Chatbots to manage inquiries and orders.

“Anything that goes beyond that requires many expenses,” he said.

While major companies can employ software companies to develop advanced systems dedicated to meeting business needs, they are luxury that many cannot bear.

Even companies with experience to integrate artificial intelligence themselves pay a installment to do so.

Lita Global, for example, spends about 2000 dollars on artificial intelligence every month, and part of it goes to purchase the distinctive symbols for the Openai (API) application program. Application interfaces allow companies based on Openai forms, instead of asking companies to build an artificial intelligence model from scratch.

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However, as artificial intelligence improves, the cost of its use is expected to decrease. The Gartner Research and Consulting Company predicted in February that by 2027, the average price of Genai’s application programming facades will decrease to less than 1 % of the average technology price itself.

This may mean a greater ability to afford the costs of smaller companies that adopt the artificial intelligence of their business.

Expectations for the area

In emerging markets such as those in Southeast Asia where employment costs are low, companies may feel less enthusiastic about increasing efficiency by adopting technology. But technology can provide “much better [outcomes]”For current commercial practices, Wirtz of Nus Business School. AI is just another way to adopt technology.

It compared it to circulating electronic expertise services, which reduced the risk of exposure to tourists who were deceived by taxi drivers in foreign countries, where electronic applications can estimate the price of the trip.

With a number of entrepreneurs in economies such as Vietnam, where labor costs are low, excitement in adopting artificial intelligence is still high, according to Parida.

“He is very hungry youth,” he said.

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