Southeast Asia is witnessing a digital revolution, with generative AI becoming an integral part of daily life. As of 2026, 243 million people in the region actively use AI, representing 58% of the working population. This adoption is scaling four times faster than the rollout of mobile internet, signaling a significant shift in how people interact with technology.
The 11th edition of the annual e-Conomy SEA report, published by Google, Temasek, and Bain & Company, underscores the economic implications of this AI-driven transformation. The report forecasts that the region’s digital economy will grow 17% year-on-year (YoY), reaching a Gross Merchandise Value (GMV) of $368 billion in 2026.
This growth trajectory positions Southeast Asia to surpass $1 trillion in digital economic value by 2035. The report highlights the role of tokens as a new benchmark for the AI economy, predicting a 60-fold surge in regional AI usage over the next five years due to growing confidence in agentic commerce.
The report identifies three key areas where AI is reshaping the digital economy. In e-commerce, which accounts for $226 billion in GMV with a 18% YoY increase, AI-powered tools such as multimodal discovery and in-app assistants are enabling consumers to navigate complex purchases with confidence. These tools are driving a 10% increase in conversions and order volume uplifts as high as 75%.
In online travel, which reached a GMV of $59 billion with a 10% YoY growth, generative AI has overtaken social media to become the second-most used tool for organizing complex itineraries. Traditional search engines remain the top platform for planning travel, but AI is increasingly playing a critical role in itinerary management.
Online media, with $44 billion in revenue and a 22% YoY growth, is leveraging AI to personalize content feeds and connect audiences with more relevant ads. This shift is creating a $4 billion commerce media market, with engagement quality improving by 10 to 20%.
Mobility and food delivery, which reached a GMV of $40 billion with a 15% YoY growth, are benefiting from AI-driven predictive suggestions, smarter routing, and AI-powered offerings like pooled rides. These innovations are fueling healthy transactional growth and improving consumer convenience.
Finally, digital financial services, which reached a Gross Transaction Value (GTV) of $1,650 billion with a 16% YoY growth, are enhancing consumer experiences through real-time fraud detection, broader credit access, and personalized financial recommendations. These services are complementing human advice and reinforcing Singapore’s leadership in digital wealth platforms.