One of the biggest use cases of generative AI is virtual assistance. Numerous startups have sprung up globally that help companies offer virtual assistants or AI chatbots as part of their product experience. These virtual assistants can help answer consumer queries, guide consumers to the right solutions, and promote a company’s products in a personalised way.
The number of daily users of generative AI in the APAC region is set to triple within the next five years. This boom provides a massive opportunity for a new wave of startups to become household names. The looming question is whether the region’s virtual assistant tech startups can capitalise on the opportunity.
Southeast Asian startups in the international market may find it hard to compete. Still, they may have certain advantages, too. Let’s dive into a comprehensive look at virtual assistant tech startups in Southeast Asia.
We explore how the tech ecosystem in Malaysia is positioned to grow with corporate venturing
An overview of the virtual assistant ecosystem in Southeast Asia
The use of virtual assistants is poised to evolve rapidly. Governments across the region have started taking action to bolster the tech ecosystem, with Singapore, Indonesia, Vietnam, and Thailand having already launched their national AI strategies and policies, which will help them take action to become AI-ready.
Numerous startups have joined the action as well. For example, Lazada, an eCommerce platform, has launched a chatbot on its website to help resolve consumer queries. Similarly, the Grab app now uses generative AI to translate communications between vendors and users who speak different languages. Further, Singapore’s OCBC Bank has trained an AI assistant on thousands of internal documents to enable it to answer employee questions.
Singapore has also started leveraging AI in its internal processes to boost government productivity and better serve citizens. This marks a significant milestone that can help increase consumers’ and businesses’ trust in AI. It may also support and inspire other regional and global governments to follow suit.
Potential and challenges
Tech is barely scratching the surface of what is possible with AI, even at current research levels. While foundational models like ChatGPT are already highly developed, startups are developing specialised tools to help with niche use cases.
Southeast Asia may have a few inherent advantages, such as a young, digital-savvy population that can quickly leverage emerging tools. Similarly, local startups can use a booming regional ecosystem to market their products globally. While foundational models are being born in the West, many local developers can leverage these models for specific applications.
The region’s startups may need to partner with foreign tech giants and local governments to scale operations in an increasingly competitive market. The incredible linguistic and ethnic diversity of Southeast Asia presents both an opportunity and a challenge. For a startup to scale in the region, it must cater to a diverse collection of consumers.
There is a need to build products that consider the region’s unique circumstances. For example, an indigenous app, GrabMaps, has been successfully working on mapping thousands of bylanes and dust roads in Indonesia, which were previously left unmapped by satellite technology.
Emerging trends in the space
A few noteworthy trends are already emerging within the virtual assistant space. Many experts predict we’ll use AI assistants to operate our apps rather than directly operating them within a few years.
These AI Assistants will be given voice or typed commands, and they’ll autonomously access the right app, pull the relevant data, or take the right action. For example, if you want to book a movie, you won’t have to go through a dedicated booking app; you can just let your AI assistant book a ticket.
It is already evident that we will see increased AI integration in all our digital spaces. The remaining question is what forms will it take. An entirely new channel called “voice commerce” may emerge, involving AI assistants mediating your shopping decisions. You will give it some instructions, and your AI assistant will display products based on your prior tastes and preferences. This technology can potentially disrupt and change our online shopping experience forever.
While some virtual assistant tech startups have emerged in the region, there is still a long and challenging road ahead. The good news is that the opportunity is also massive. The potential market for these startups is not just Southeast Asia but numerous countries worldwide.
Southeast Asia is currently responding to entrenched challenges such as climate change, lack of upward mobility, the need for quality education and healthcare, and so on. Virtual assistant tech startups in Southeast Asia have an excellent opportunity to improve work and living conditions. Hopefully, we will see Southeast Asian startups in the international market soon offering top-of-the-range virtual assistance.