AI is propping up Southeast Asia’s digital economy as prices rise and demand cools

Southeast Asia’s digital economy is still growing, even though consumers are paying more and buying less. According to the 11th annual e-Conomy SEA report from Google, Temasek Holdings and Bain & Company, artificial intelligence is doing much of the work. The report projects the region’s digital gross merchandise value will reach $368 billion in 2026, up 17% year over year. The numbers behind the slowdown that isn’t quite a slowdown The report was released around October 20–21, 2026, and covers 10 Southeast Asian countries. Its central argument is that AI is helping businesses target customers more precisely and run operations more efficiently. E-commerce remains the anchor. The sector is projected to hit $226 billion in GMV, an 18% increase from the prior year. Online media revenue is projected at $44 billion, up 22%. Mobility and food delivery are projected to reach $40 billion, a 15% gain. Digital financial services are the giant in the room. The report puts gross transaction value at $1.65 trillion, up 16%. AI adoption is outrunning the smartphone era Adoption now reaches 243 million people, or 58% of the region’s workforce. That uptake is happening four times faster than t...