Google, Temasek, and Bain Report: AI Drives Southeast Asia's Digital Economy to $368 Billion GMV in 2026, Up 17% YoY
New research shows AI is helping Southeast Asia's digital economy achieve robust growth despite inflation, with 2026 GMV projected at $368 billion and tech funding surging fivefold in H1.
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According to the 'e-Conomy SEA 2026' report released on October 21, 2026, by Google, Singaporean sovereign wealth fund Temasek, and consulting firm Bain & Co., the gross merchandise value (GMV) of Southeast Asia's digital economy is projected to reach $368 billion in 2026, representing a year-over-year increase of approximately 17%. This growth persists despite regional challenges such as high inflation, rising interest rates, and energy price volatility caused by geopolitical shocks.
The report identifies artificial intelligence (AI) as a key factor in offsetting these macroeconomic headwinds. Local digital businesses are leveraging AI to better target consumers and spur spending, leading to significant increases in online media advertising revenue driven by AI-promoted content. Data indicates that about 62% of Southeast Asian consumers are now more confident using AI to make critical decisions compared to last year.
Furthermore, AI has fueled a rebound in the region's tech investment. Funding for private companies in Southeast Asia surged more than fivefold in the first half of 2026 compared to the same period last year. Major drivers include large-scale investments in data center construction and demand for AI applications across industries ranging from software to digital financial services. Data center operators such as STT GDC and DayOne Data Centers Ltd. accounted for a bulk of this funding.