and streaming services, the spectrum of what is essential has broadened, particularly among key demographics like Gen Z and the growing ‘solo economy’. In an exclusive interview with Inside Retail, Meta’s vice president for Southeast Asia and emerging markets Benjamin Joe explained how AI is powering this transformative landscape, and why businesses must seize unprecedented opportunities to grow in a region slated to add 24 million people to its working population by 2030. The story so far According to Joe, Southeast Asia is the third most populous region in the world and the urbanisation and demographic shifts taking place will shape how people discover and purchase goods and services.  “The fact that all generations in the region are spending more time online and experimenting with new technologies such as AI, VR and healthtech, this will affect how Southeast Asian businesses can successfully engage with consumers,” he told Inside Retail. He went on to say that global early adopters of AI expect brands to resemble a “best friend” when they are shopping. This essentially means that they expect brands to be personal, understand and represent their values, and be effortless in their shopping journey.  “This is particularly so for Gen Zs where in Thailand, 70 per cent of those surveyed say they want personalised product recommendations and 68 per cent want to discover products that are currently trending,” he added. Philippines and Indonesia Meta is working with brands such as Jollibee in the Philippines and Blue by BCA Digital in Indonesia in these areas. “With Jollibee, we ran a campaign to launch its new chicken sandwich using Reels to determine whether it could help reach a younger audience. The Reels ad featured a “crunchy” sound of someone biting into a chicken,” he elaborated. On the other hand, Blue by BCA Digital is a financial services provider targeted at helping Gen Z consumers manage their money better.  The company wanted to raise awareness of its BluSavings feature and boost overall brand favorability, but money and savings were not topics that younger audiences were naturally interested in.  “We worked together with a well-known personality to take on the ‘BluSaving Challenge’ alongside a virtual brand ambassador. The Reels ad, which had both parties talking about the importance of saving money for the future and a rainy day, resonated positively among Gen Zs,” he noted. The AI factor According to the report, 73 per cent of business leaders recognise the potential of AI but feel unprepared to harness it. Joe believes that AI is becoming more crucial than ever for businesses to thrive in Southeast Asia’s ever-evolving digital landscape. The Vietnamese home appliance company, Kangaroo, is a prime example. The team at Kangaroo wanted to personalise its marketing strategy and encourage one-on-one conversations with customers. “They ran two campaigns: one featuring photo ads that click to Messenger and the second featuring a campaign of Advantage+ Shopping ads, a creative solution using machine learning to streamline and automate the campaign creation process,” Joe explained. The two campaigns yielded strong results, with 37 per cent more conversions and 27 per cent less cost for purchase. “Recently, we launched Generative AI-powered features for ads that will unlock a new era of creativity through its new features like background generation, image expansion, and text variations,” he said. Joe said Meta is combining its AI-powered discovery engine with the social connection that has always been the core of its platforms for a more relevant, entertaining, and social experience.  “Short-form video continues to become more social with Reels plays exceeding 200 billion per day across Facebook and Instagram. We’re also seeing more than 75 per cent of our advertisers using Reels ads,” he noted. The big picture Two of the most significant findings in the report, according to Joe, were the important role of social media for consumers across all income levels, and the demand for streaming.  “The top two cohorts that will be driving the region’s economy continue to be Gen Zs, but also the solo economy, driven by older singles, young professionals and young urban migrants,” he stressed. Interestingly, disruptive business models have emerged as winners in this new economy. They are now responsible for US$50 billion in revenue in Southeast Asia alone, with a 20 per cent market share that is steadily growing at an exponential rate. “These companies are winning in markets because they understand new expectations and needs of consumers and have evolved to address them. Also, product personalisation and AI will be important to drive sales,” he concluded.