AI Adoption Fuels SEA Digital Commerce to $368B in 2026, Past $1 Trillion by 2035

Generative artificial intelligence is reshaping commerce in Southeast Asia, with new research projecting the region’s digital economy will reach $368 billion in gross merchandise value by 2026, according to Google, Temasek, and Bain & Company.

The risk

The primary shift identified in the eleventh edition of the e-Conomy SEA report is the rapid transition toward agentic commerce, where consumers trust AI agents to execute complex purchasing tasks. This behavior signals a move away from passive browsing toward autonomous transaction handling. The report notes that generative AI is currently scaling at a rate four times faster than the initial rollout of mobile internet across the region. This acceleration is not limited to a single sector but is boosting growth across e-commerce, travel, media, mobility, and financial services simultaneously.

Who is exposed

The report indicates that 243 million people in Southeast Asia, representing 58% of the working population, actively use generative AI in their daily routines. These users are increasingly comfortable delegating tasks such as price comparison and itinerary planning to automated systems. E-commerce anchors this shift, with the sector expected to generate $226 billion in GMV, driven by multimodal discovery tools and in-app assistants that help shoppers navigate complex purchases. Online travel and media sectors are also seeing significant engagement lifts from AI-powered personalization and planning tools.

Cost and compliance

The e-Conomy SEA 2026 report projects a 17% year-on-year growth rate for the digital economy, leading to the $368 billion GMV milestone in 2026. This trajectory places the region on a path to exceed $1 trillion by 2035. The report uses tokens as a new benchmark for measuring the AI economy, projecting a 60-fold surge in regional AI usage over the next five years. To sustain this momentum, the authors argue that the region must prioritize expanding data center infrastructure, improving energy efficiency, and establishing unified digital trade policies to support the massive surge in computational demand.

What should you do?

Managers should assess whether their current platforms support the integration of AI agents for customer service and transaction processing, as consumer expectations are shifting toward autonomous commerce. Organizations should also review their data infrastructure and energy efficiency plans to ensure they can handle the projected increase in AI-driven workloads and token usage.

The background in plain language

Agentic commerce refers to software that performs tasks on behalf of a user rather than just providing information. Unlike traditional search engines that list options, these agents can compare prices, select items, and complete purchases autonomously based on user preferences. This requires higher levels of consumer trust and robust backend systems to handle real-time data processing. Teams usually need to ensure their data pipelines can support high-volume, low-latency requests to make this experience seamless for users.

Background: AI agents

AI agents are software systems that perceive their environment, make decisions, and execute actions to achieve specific goals. Unlike standard models, they maintain internal state and interact with external tools, creating unique security risks around tool execution, memory retention, and autonomous decision loops that require specialized controls.

Read the full guide: AI Agents Explained: Answers to Security and Architecture Questions

What to do and how to stay safe: Google

• Evaluate current customer interaction models to identify opportunities for integrating AI agents that can handle routine purchasing decisions.
• Audit data center capacity and energy consumption to prepare for the projected 60-fold increase in AI usage over the next five years.
• Monitor regional digital trade policies to ensure compliance with emerging unified standards for cross-border data flows and AI operations.
• Develop internal guidelines for AI agent behavior to maintain consumer trust and minimize errors in autonomous transactions.

Step-by-step guide: AI Governance Explained: Building Rules for Autonomous Systems

General security guidance from the Vector Tribune newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

How fast is generative AI growing compared to previous technology adoptions?

According to the report, generative AI is scaling four times faster than the rollout of the mobile internet in Southeast Asia.

What is the projected value of the Southeast Asian digital economy in 2035?

The e-Conomy SEA report predicts the digital economy will exceed $1 trillion by 2035.

Which sectors are seeing the most growth from AI adoption?

E-commerce, online travel, online media, mobility, food delivery, and digital financial services are all experiencing significant growth driven by AI.