In the fiercely competitive Southeast Asian e-commerce market, Lazada, an e-commerce platform under Alibaba Group, is accelerating the deployment of generative artificial intelligence (AI) technology in order to regain its market advantage. According to The Wall Street Journal, Lazada is planning to use advanced AI technology to comprehensively upgrade its shopping website, aiming to attract more types of user groups and enhance user experience.

Lazada's technological innovation will cover multiple aspects. Firstly, by introducing a personalized shopping recommendation system, Lazada will be able to provide users with tailored product recommendations based on their shopping history and preferences, thereby enhancing their shopping experience and satisfaction. In addition, AI agents will also be applied in the field of after-sales service, providing shoppers with more efficient and convenient after-sales support.

For sellers, Lazada's AI tools also have strong appeal. Sellers can use these tools to create content tailored to different market customers, in order to more accurately target potential customers. At the same time, AI technology can also help sellers predict market demand, effectively plan logistics, reduce operating costs, and improve profitability.

Lazada CEO Dong Zheng stated in an interview with The Wall Street Journal that the company hopes to achieve a revolutionary change in the overall business through a series of small improvements. He revealed that in the past two years, Alibaba has invested approximately $2 billion in Lazada, with some of the funds dedicated to the construction of AI and logistics infrastructure.

However, the competition in the Southeast Asian e-commerce market is extremely fierce, and the profit margin is also extremely slim. Amazon's business in the region is limited, and most participants have been operating at a loss for years. In recent years, with the acceleration of industry consolidation, only a few companies in this field are still persisting. These companies are shifting their focus to profitability, responding to market challenges by cutting costs, increasing seller commissions, and other means.

Among Lazada's main competitors, Shopee, a subsidiary of Donghai Group, is undoubtedly a strong competitor. According to Bernstein research estimates, Lazada's market share in Southeast Asia was 20% last year, which is higher than the 19% in 2020 but still far below Shopee's 45%. In addition, ByteDance's TikTok Mall has also emerged in the Southeast Asian market, with a market share of 20% in 2023.

Faced with such a fiercely competitive environment, Lazada has chosen to seek breakthroughs through AI technology. Analysts point out that adopting AI technology can help Lazada increase revenue and efficiency in the next 18 months, thereby occupying a more advantageous position in the competition. However, they also warn that due to the low threshold for the industry to utilize AI, the window of opportunity to gain competitive advantage through AI may be relatively short.

Nevertheless, Lazada remains confident in AI technology. Dong Zheng stated that the company will continue to increase investment in AI technology and looks forward to achieving a comprehensive upgrade and transformation of its business in the coming years. With the continuous development and application of AI technology, Lazada is expected to regain its dominant position in the Southeast Asian e-commerce market and become a leader in the industry.