Southeast Asian online spending forecast to reach US$368 billion
AI is supporting consumer spending and a rebound in private-company funding, according to a study by Google, Temasek and Bain.
Southeast Asia’s online spending is forecast to increase by about 17% to US$368 billion, with artificial intelligence helping businesses encourage purchases despite pressure on household budgets, according to research by Google, Temasek Holdings Pte Ltd and Bain & Co.
The projected growth is slightly below the previous year’s pace. The report said businesses were using AI to improve consumer targeting as weak economic growth and high inflation constrained demand for services including e-commerce and travel. Elevated interest rates and energy-price shocks were also limiting consumers’ spending power.
Online media is heading for its fastest expansion in at least five years, supported by advertising revenue generated through AI-driven content promotion, the researchers said. Their findings also showed that about 62% of consumers in Southeast Asia felt more confident about relying on AI for critical decisions than a year earlier.
First-half funding for private companies rose more than fivefold year-on-year, according to the report. Data centre construction deals and demand for AI applications in software and digital financial services supported the rebound. Companies including STT GDC and DayOne Data Centers Ltd accounted for much of the funding.
