Southeast Asia Digital Economy Reaches $368B as AI Surges

Generative intelligence has integrated into the daily routines of 243 million individuals across Southeast Asia, representing 58 percent of the working population. According to the 11th edition of the annual e-Conomy SEA report, titled Building the Intelligent Economy and published by Google, Temasek, and Bain & Company, this technology is scaling at a rate four times faster than the initial rollout of mobile internet. Widespread adoption is propelling the digital economy in the region to expand by 17 percent year-on-year, reaching a Gross Merchandise Value of $368 billion in 2026. Projections indicate the market is on a firm trajectory to surpass $1 trillion by 2035, with tokens emerging as the primary benchmark for the AI-driven economic landscape. Rising confidence in agentic commerce is expected to fuel a 60-fold increase in regional usage over the next five years.

Sector Impacts and Consumer Trust

Across multiple market segments, artificial intelligence is transforming core operations and consumer interactions. E-commerce leads the region with $226 billion in Gross Merchandise Value, marking an 18 percent year-on-year increase. Tools such as multimodal discovery and in-app assistants help consumers navigate complex purchases, generating a 10 percent boost in conversions and order volume uplifts of up to 75 percent. Online travel reached $59 billion in Gross Merchandise Value, where generative technology has surpassed social media to become the second most utilized tool for planning itineraries. Online media recorded $44 billion in revenue with a 22 percent year-on-year rise, benefiting from personalized content feeds and improved ad targeting. Mobility and food delivery hit $40 billion, driven by predictive suggestions and smarter routing, while digital financial services achieved $1,650 billion in Gross Transaction Value through real-time fraud detection and broader credit access.

Consumer adoption is supported by growing familiarity, with 72 percent of users relying on everyday features like price tracking. Furthermore, 75 percent of users express willingness to allow autonomous agents to compare prices and complete transactions on their behalf. Trust in these tools has risen over the past year for 62 percent of individuals, bolstered by proven track records, increased familiarity, and output accuracy. Users highlight the importance of strong privacy safeguards, transparent information on capabilities, and the ability to reverse automated transactions.