Navigating the Impact of AI on Retail in the APAC Region

Artificial Intelligence (AI) is rapidly gaining ground in the retail sector in the Asia-Pacific (APAC) region, shifting from mere analytics and experimental phases to becoming an integral part of daily operations and workflows.

The adoption of AI in the APAC retail sector is being primarily driven by factors such as densely populated urban areas, high turnover rates in labor, and the competitive landscape of quick-commerce ecosystems. According to a survey conducted in Q4 2025 by GlobalData, 45 percent of consumers in Asia and Australasia are highly inclined to make purchases based on AI recommendations and endorsements.

Consumer Analyst at GlobalData, Jaya Dandey, highlighted the significant role of machine-learning systems in influencing consumer purchase decisions, product visibility, and discount availability, often without consumers being fully aware of it.

One of the key technologies driving AI integration in APAC retail is computer vision and store automation. Companies like Lawson in Japan and Fainders.AI in South Korea have successfully leveraged AI and machine learning to create cashier-less stores, enhancing the overall shopping experience for customers.

Moreover, AI is also being utilized for efficient retail replenishment strategies, particularly in markets with small store footprints like those in the APAC region. For instance, Coop Sapporo in Japan has implemented a camera-based AI system called Sora-cam to optimize shelf displays and reduce wastage by identifying items close to expiry.

AI-driven solutions are also revolutionizing labor optimization in retail, helping retailers in Japan and South Korea address labor shortages and improving efficiency in high-growth markets like Southeast Asia.

Agentic AI systems are playing a crucial role in enhancing consumer interaction in the APAC retail landscape. These systems act as intelligent operators capable of understanding customer preferences, planning meals, and streamlining the shopping experience based on specific requirements.

Furthermore, the integration of AI with digital wallets, messaging apps, and delivery services in many APAC markets is facilitating seamless adoption of agentic AI solutions into daily routines.

Despite the numerous benefits AI brings to the retail sector, challenges such as data privacy concerns, allergen detection, and localization of AI systems remain to be addressed.

For more insights on AI and big data trends, industry leaders can explore events like the AI & Big Data Expo hosted in various global locations.

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