Artificial intelligence in Southeast Asia: ‘algorithmic hallucinations’ and ethical risks as e-commerce companies adopt new technologies

Professor of computer science and engineering and co-director of the artificial intelligence research institute at Nanyang Technological University in Singapore, Bo An, said that the use of artificial intelligence in e-commerce has impacted traditional physical commerce in various ways, such as a decline in foot traffic and sales volume in brick-and-mortar stores.

“As a result, in order to avoid the risk of bankruptcy, many stationary stores tried to change the framework of their operations by mergingonline and offline sales strategies that could be more effective,” he said.

This may affect the urban layout of the region.

Prof. Bo expressed the opinion that e-commerce companies can set up distribution centers on the outskirts of the city, especially in the city-state like Singapore.

“This would significantly reduce costs, which can be extremely high when considering the establishment of distribution centers in the central business district (CBD).

“Secondly, compared to traditional brick-and-mortar retail, the need for office space in e-commerce can be significantly reduced because many jobs such as advertising, consulting and after-sales services can be performed online,” he noted.

He believes that Singapore has a unique feature compared to other countries or regions, which is the coexistence and balance between e-commerce and physical commerce.

“As a highly developed country, thanks to an improved transport system, consumers can quickly buy selected products in stationary stores within a few hours.

“Online shopping, on the other hand, while convenient, would still require several steps before consumers receive the products – order placement, payment, order confirmation and product delivery, which is typically the most time-consuming part of the online shopping process,” he said. he said.

He also pointed out that as a small country, modern e-commerce companies have limited space to set up their large warehouse centers in Singapore.

“Given these facts, although artificial intelligence is widely used in e-commerce and there are many online shopping platforms such as Shopee and Lazada, physical stores are still an important part of overall commerce in Singapore,” Prof. Because to assume.

However, other markets face different challenges.

Jakarta city planner Mdm Elisa Sutanudjaja said premium shopping malls in Southeast Asia were quick to adapt by hosting events on their premises to attract visitors.

She said this could include events such as meeting a pop star.

The development of e-commerce and artificial intelligence does not have a major impact on this type of shopping malls.

However, she noted that e-commerce has brought a new urban challenge to Southeast Asia’s megacities and suburbs: the need for multiple warehouses.

Some cities may not be prepared for this.

She believes demand for warehouses may have increased by 90 percent in recent years as e-commerce companies expand.

Artificial intelligence is likely to fuel the e-commerce boom. So, the demand for more warehouses may continue to trend over the next few years.

“But the percentage of warehouses in cities or in industrial plans is small. So demand and availability are not balanced,” said Mdm Elisa, executive director of the think tank Rujak Center for Urban Studies.