Key Takeaways
- • The e-Conomy SEA 2026 report, produced by Google, Temasek and Bain & Company, finds 243 million people in the six largest Southeast Asian markets (SEA-6), or 58% of the working population, have adopted generative AI in under three years.
- • SEA's digital economy is projected to grow GMV 17% this year, keeping the region on track for $1 trillion GMV despite geopolitical and macroeconomic uncertainty.
- • Digital economy funding reached $8 billion, in line with three-year run rates, with AI-focused companies capturing 80% of private deployment in the last six months, up from 30% in H2 2024.
- • Digital infrastructure investment reached $20 billion over the last twelve months, led by the $11 billion acquisition of ST Telemedia Global Data Centre.
- • Monetization remains nascent: only about 1%–2% of the SEA-6 population pays for generative AI, versus 3% of US households, and ads have not yet launched on standalone generative AI platforms.
Summary
The e-Conomy SEA 2026 report, a multi-year research programme launched by Google and Temasek in 2016 with Bain & Company as lead research partner since 2019, finds that generative AI has reached mass adoption in Southeast Asia's six largest markets faster than many expected. According to the report, 243 million people, or 58% of the working population, have adopted generative AI in less than three years. Half of users consult it weekly and almost a fifth use it daily.
Per-capita usage nonetheless lags developed markets considerably, at roughly 10% of US levels. Consumer use cases account for about 60% of regional AI usage, while enterprise workloads dominate in Singapore and Malaysia, the two most AI-mature markets. Indonesia and the Philippines are identified as having the most headroom for user growth. Monetization is at an early stage: around 1%–2% of SEA-6 residents pay for generative AI, compared with 3% of US households, and advertising on standalone generative AI platforms is expected but has not yet arrived.
The report projects SEA's digital economy to post 17% GMV growth this year, with AI described as a key long-term driver. Consumers increasingly use AI in purchase decisions, with 69% comparing product options through AI and 93% trusting its recommendations. Businesses are using AI for multimodal discovery, conversational assistance and personalization, with uplifts in order volume of up to 75% cited.
On funding, digital economy deals totalled $8 billion, matching three-year averages, and most regional activity is concentrated in late-stage transactions, including secondaries. Public listing proceeds rebounded past $8.5 billion over the last twelve months, led by Singapore and Malaysia. The report also looks ahead, forecasting that usage could grow up to 60 times current levels by 2030, contingent on agentic adoption, inference efficiency, infrastructure scale and sustainable unit economics.
Temasek, headquartered in Singapore, reports a net portfolio value of S$518 billion (US$401 billion) as of 31 March 2026.
Per-capita usage nonetheless lags developed markets considerably, at roughly 10% of US levels. Consumer use cases account for about 60% of regional AI usage, while enterprise workloads dominate in Singapore and Malaysia, the two most AI-mature markets. Indonesia and the Philippines are identified as having the most headroom for user growth. Monetization is at an early stage: around 1%–2% of SEA-6 residents pay for generative AI, compared with 3% of US households, and advertising on standalone generative AI platforms is expected but has not yet arrived.
The report projects SEA's digital economy to post 17% GMV growth this year, with AI described as a key long-term driver. Consumers increasingly use AI in purchase decisions, with 69% comparing product options through AI and 93% trusting its recommendations. Businesses are using AI for multimodal discovery, conversational assistance and personalization, with uplifts in order volume of up to 75% cited.
On funding, digital economy deals totalled $8 billion, matching three-year averages, and most regional activity is concentrated in late-stage transactions, including secondaries. Public listing proceeds rebounded past $8.5 billion over the last twelve months, led by Singapore and Malaysia. The report also looks ahead, forecasting that usage could grow up to 60 times current levels by 2030, contingent on agentic adoption, inference efficiency, infrastructure scale and sustainable unit economics.
Temasek, headquartered in Singapore, reports a net portfolio value of S$518 billion (US$401 billion) as of 31 March 2026.
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