65% of Singaporeans Prefer AI Over Humans for Shopping Such As LazzieChat by Lazada — Are You Missing Out?

AI Recommendations is The New Shopping Norm in Singapore

In Singapore, AI has become a key player in reshaping shopping preferences, with a substantial 65% of Singaporeans expressing a preference for AI-generated shopping recommendations over those made by humans, according to a study by McCann Worldgroup titled the "Truth About Singapore".

This trend highlights a significant shift in consumer behaviour, driven by a growing reliance on technology to streamline and personalise the shopping experience.

The evolution of AI tools, like LazzieChat, exemplifies this shift.

Developed by Lazada Group, a subsidiary of Alibaba, LazzieChat is Southeast Asia's first AI-powered eCommerce chatbot.

This innovation harnesses the capabilities of OpenAI’s ChatGPT technology within Microsoft’s Azure OpenAI Service to provide users with highly personalised shopping support.

According to Howard Wang, Chief Technology Officer at Lazada Group:

“Online shopping journeys are becoming more dynamic with the help of technology. We want to bridge the gap between offline and online shopping by providing high-quality experiences that consumers love, and create value for brands and sellers who can tap into new technologies to reach out to a wider audience. We are confident AI will drive new developments in making online shopping and selling a seamless daily activity for everyone.”

Exploring Diverse Perspectives Online

Beyond shopping, Singaporeans are increasingly seeking diverse viewpoints online, with 73% of respondents using the internet to engage with a variety of perspectives.

This trend highlights the growing preference for digital spaces over physical interactions when it comes to exploring new ideas and opinions.

The digital realm offers a unique advantage in this context, enabling users to access a broad spectrum of viewpoints without geographical limitations or social constraints.

The rise of digital platforms that facilitate this exchange of ideas reflects a broader cultural shift towards valuing online engagement as a means of broadening one’s horizons.

The Human-Robot Connection

Interestingly, the desire for connection extends beyond human interaction, with half of Singaporeans open to the prospect of forming friendships with robots.

This openness reflects a deep-seated need for companionship and interaction that current digital communication methods fall short of fulfilling.

The report suggests that this readiness to embrace robotic companionship is driven by an inherent need for social connection, which digital interfaces alone often cannot satisfy.

What Is an AI Shopping Assistant?

An AI shopping assistant is designed to transform the shopping experience by leveraging advanced artificial intelligence to offer highly personalised recommendations.

These digital tools analyse a user’s preferences and past purchases, making it easier to find products, compare prices, and complete transactions.

For instance, LazzieChat, integrated with Lazada’s platform, utilises OpenAI’s ChatGPT technology to deliver tailored shopping advice and product suggestions.

By analysing a user’s browsing history and purchase behaviour, AI shopping assistants predict shopping needs and provide real-time recommendations, significantly enhancing the shopping experience.

Diomedes Kastanis, CTO for Microsoft in Asia Pacific asserts:

"By combining the scale and power of Microsoft Azure OpenAI Service with the breadth of Lazada’s consumer reach, this collaboration will transform the shopping journey."

How Do AI Shopping Assistants Operate?

The operational core of AI shopping assistants lies in their ability to process and analyse vast amounts of data.

These assistants gather information from various sources such as browsing history and social media interactions, which is then scrutinised through sophisticated machine learning algorithms.

This process identifies patterns and trends in user behaviour, allowing the assistant to make precise recommendations.

Enhanced features such as price comparisons, product reviews, and voice-activated search further streamline the shopping process.

This technological prowess not only simplifies the shopping experience but also ensures that consumers receive relevant and timely recommendations based on their individual preferences.

U.S. Consumer Attitudes Towards Voice AI in Stores

Despite the growing use of voice AI for online shopping, American consumers show a notable reluctance to apply this technology in physical retail environments.

PYMNTS Intelligence's special report, based on a survey of over 2,700 U.S. consumers, reveals that only 14% across all generations are interested in using voice-activated AI assistants for in-store shopping, including tasks such as cart filling and same-day delivery.

Even among younger demographics — Gen Z and millennials — interest remains low, with only 19% and 20% expressing enthusiasm respectively.

This finding suggests that while consumers are receptive to AI-driven shopping experiences in the digital realm, there may be reservations about fully embracing voice AI in brick-and-mortar environments.

The limited appeal of in-store voice AI reflects ongoing scepticism about its practicality and effectiveness in physical retail settings, highlighting a gap between online and offline technology adoption.

Although the survey results pertain to a U.S. context, they offer valuable insights that may resonate with global trends.

The reluctance observed in the U.S. can help contextualise similar findings in Singapore, suggesting that while consumers may embrace voice AI for online interactions, they remain cautious about its integration into physical retail experiences.

This finding suggests that while consumers are receptive to AI-driven shopping experiences in the digital realm, there may be reservations about fully embracing voice AI in brick-and-mortar environments.

Rethinking the Shopping Experience

AI shopping assistants are fundamentally reshaping how we approach retail, offering unparalleled personalization and efficiency.

By harnessing vast data sets and sophisticated algorithms, these tools provide tailored recommendations and streamline the shopping process, making it more intuitive and engaging.

The shift towards AI-driven shopping is not merely a trend but a profound evolution in consumer behaviour, promising to enhance convenience and decision-making.

As AI continues to evolve, it challenges traditional shopping paradigms, compelling us to reconsider what an optimised retail experience looks like.

This shift presents a broader transformation in consumer expectations and technological integration, marking a significant leap towards a future where shopping is more connected, personalised, and efficient.