With the rapid development of technology, Artificial Intelligence (AI) has become the center of global attention, especially in the field of generative AI, such as the launch of innovative products like OpenAI’s Sora, which has pushed this technology to new heights. However, behind the seemingly unlimited promise of AI technology, its cost, efficiency, and impact on businesses in practical applications, especially in Southeast Asia, present a complex and diverse picture. In this paper, we will explore the challenges, current status, and future outlook of AI adoption by Southeast Asian enterprises from multiple dimensions.
I. The Global Boom in AI Technology and Opportunities in Southeast Asia
The rise of generative AI, such as the success of products like ChatGPT and Sora, not only demonstrates the power of AI in text, image and even video generation, but also signals that AI technology will profoundly change various industries. Goldman Sachs’ prediction even adds to this trend, pointing out that generative AI is expected to drive global GDP growth by 7% in the next decade, which undoubtedly provides huge development opportunities for global enterprises.
Southeast Asia, as one of the key engines of global economic growth, has naturally become a hotbed for AI technology applications. Large companies with strong financial and technological strength, in the AI research and development and adoption at the forefront, while smaller enterprises and individual businesses are also actively trying to achieve cost reduction and efficiency with the help of AI technology.
II. AI cost: high input and realistic considerations
Despite the promising prospects of AI technology, its cost in practical application is a problem that cannot be ignored. MIT’s research reveals a surprising fact: in most cases, the cost of adopting AI is higher than the cost of labor for enterprises. This finding not only challenges the common perception that AI can significantly reduce costs, but also forces companies to make more careful considerations when adopting AI technology.
This cost consideration is particularly evident in the Southeast Asian e-commerce space. Many merchants who have tried to use AI tools to generate models and product images have found that the results are not as good as expected, and even require more time and money to correct. In contrast, live action photography, while slightly more costly, is more advantageous in terms of effectiveness and efficiency. This phenomenon is particularly prominent in the field of cross-border e-commerce, because face models and cultural differences in different regions make it difficult for AI-generated content to achieve a perfect fit.
III. The double challenge of efficiency and effectiveness
In addition to the cost issue, the efficiency and effectiveness of AI in practical application are also the focus of business concerns. In Southeast Asia, many e-commerce sellers try to use AI to produce oral videos to introduce products, but the results are often unsatisfactory. On the one hand, AI-generated videos still have a certain gap in authenticity and naturalness, making it difficult to completely replace real people; on the other hand, the flexibility of AI systems in handling complex tasks and responding to unforeseen situations is also relatively low, making it difficult to meet the diverse needs of enterprises.
Therefore, at this stage, many enterprises still choose to rely on manual labor to complete critical tasks. For small-scale sellers, the use of AI tools may instead increase unnecessary costs as their businesses are not complex. As Jerry, a cross-border e-commerce seller, said, “For the time being, I haven’t referenced any AI products in my main business processes, just myself will use the free version of ChatGPT to handle some small tasks.”
IV. Enterprises' Hesitation and Future Exploration
Faced with the high cost and uncertainty of AI technology, companies in Southeast Asia have shown a marked hesitation in adopting AI. a Tech in Asia survey of Southeast Asian startup founders revealed that many companies are on the fence about whether to increase their AI spending because they don’t see a clear pathway to a return on their investment. This hesitation not only stems from cost concerns, but also reflects the caution and rationality of companies in the process of technology transformation.
This does not mean that AI has no future in Southeast Asia. On the contrary, with the continuous advancement of technology and the gradual reduction of costs, the application of AI in Southeast Asia is still promising. In the future, with the popularization of computer vision technology and the decline in costs, the economic advantages of AI will gradually emerge. At the same time, enterprises also need to continuously explore AI application modes suitable for their business needs in order to realize the deep integration of technology and business.
In the wave of AI technology, Southeast Asian companies are facing both unprecedented opportunities and many challenges. How to find a balance between cost, efficiency and effectiveness? How to realize the deep integration of AI technology and business needs? These are the challenges in front of Southeast Asian enterprises. However, as history has proven, only enterprises that are brave to explore and dare to innovate will be invincible in future competition. Therefore, we have reason to believe that in the near future, AI applications in Southeast Asia will usher in a more brilliant chapter.
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