AI in Southeast Asia: 'Algorithm hallucinations' and ethical risks as e-commerce firms adopt new technologies

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Artificial Intelligence News

E-Commerce,Southeast Asia,Indonesia

In the latest in a series exploring the impact of AI in Southeast Asia, e-commerce companies, experts and customers share how machine-learning is streamlining online shopping and helping retailers get to know buyers better. But at what cost?

New: You can now listen to articles.JAKARTA: Rosy pink, warm brown and coral - these are the latest lipstick hues Mdm Sita Kurniawan has bought online in the past few months.

According to data gathering website Statista, the region’s internet economy is predicted to reach US$363 billion by 2025. “And it would tailor what you see on the website or app. It would be working in the background when you think about your basket and if you add stuff to your basket, it will run some artificial intelligence analytics about what else you might be interested in adding.”It is predicted by Statista that the archipelago

“Everywhere in e-commerce, especially the leading platforms, would have AI across their value chain,” said Mr Wintels of McKinsey.HOW MAJOR PLAYERS USE AI It is available in English in Singapore, the Philippines and Indonesia, with a Bahasa Indonesia version also available in the latter market. “Our AI-powered search recommendations account for half of our total user transactions on the platform and provide real-time personalisation for users.”

It enables users to run a skin diagnosis using their phone cameras to better understand elements such as skin type, tone and sensitivities. AI-powered chatbots also help “facilitate millions of conversations daily on Shopee and are particularly helpful during high-traffic events like midnight sales,” according to the spokesperson.

It uses AI in its search engines, recommendation engines and computer vision to improve user experience. It also utilised AI to streamline the product review writing process, providing users with text suggestions to input in their review sections. She underlined that one reason for this is a lack of recent data or bias in the data distribution used during its training.Jakarta-based coffee seller Muhamad Subhan, 19, likes to shop online, but has noticed“For example, once I wanted to search for shampoo but it showed soaps,” he said without revealing which e-commerce platform it was.

“This trend could potentially steer us towards a future where algorithms, rather than our personal values and beliefs, shape our desires and preferences, said“Therefore, to address ethical concerns, businesses must prioritise transparency and accountability in their use of AI for marketing purposes.”

 

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