Southeast Asia’s digital economy to hit $368 billion
Southeast Asia’s digital economy is projected to reach $368 billion in 2026, driven by generative AI adoption among 243 million users, with growth expected to exceed $1 trillion by 2035.
Generative AI has become integral to daily life for 243 million Southeast Asians, representing 58% of the working population, and is scaling four times faster than mobile internet adoption. The technology is reshaping commerce, with users increasingly relying on AI for tasks such as price comparisons and autonomous transactions. This shift is documented in the 11th edition of the annual e-Conomy SEA report, which highlights AI’s accelerating role in the region’s economic activities.
The digital economy’s Gross Merchandise Value (GMV) is forecast to reach $368 billion in 2026, a 17% year-on-year increase, positioning the region on track to surpass $1 trillion by 2035. E-commerce remains the largest sector at $226 billion GMV, while online travel, media, mobility, and financial services also contribute significantly to growth. AI-driven personalization is driving higher conversion rates and transaction volumes across these sectors.
Consumer trust in AI is rising, with 62% of users reporting greater confidence in the technology compared to a year ago. Familiarity with AI tools, such as price tracking, is widespread, with 72% of users already utilizing such features. The report notes that 75% of users are willing to allow AI agents to autonomously complete transactions, signaling strong potential for agentic commerce adoption.
To sustain this growth, the region must expand data center infrastructure, improve energy efficiency, and establish unified digital trade policies. The e-Conomy SEA report emphasizes the need for robust privacy safeguards, transparent AI capabilities, and reversible transaction options to maintain user trust and support the projected 60-fold increase in AI usage by 2030.