AI Drives Automation and Personalisation in APAC Retail Sector

Artificial intelligence is accelerating the pace of change in the Asia-Pacific (APAC) retail sector, moving beyond analytics and pilot projects to become embedded in everyday retail operations. Key drivers include dense urban environments, frequent staff turnover, and highly competitive quick-commerce ecosystems.

A recent survey by GlobalData in late 2025 indicated that 45 percent of consumers in Asia and Australasia are open to making purchases based on AI-driven product recommendations. Jaya Dandey, Consumer Analyst at GlobalData, noted that "whether shoppers realise it or not, machine-learning systems have long been deciding which products are displayed, when to promote them, and which discounts to offer. Now, autonomous or 'agentic' AI systems can also complete end-to-end shopping tasks."

Computer Vision and Store Automation

Companies across the APAC region are rapidly adopting computer vision and machine learning—a branch of AI where systems can learn from data and visual inputs to make decisions—to streamline retail processes.

Japanese convenience retailer Lawson began rolling out its AI-enabled 'Lawson Go' stores in 2022. In 2025, the company partnered with CloudPick to enhance these locations with integrated AI, machine learning, and computer vision technologies. With these upgrades, the stores feature cashier-less checkouts, eliminating queues and further improving customer experiences.

In South Korea, Fainders.AI introduced a fully autonomous, cashier-less MicroStore situated inside a gym in 2024. This initiative makes frictionless retail accessible in a wider range of locations and business settings.

AI technologies are also transforming supply chain management, particularly in regions where stores are small and stock replenishment is frequent. Japanese food retailer Coop Sapporo employs a camera-based AI system, Sora-cam—developed by Soracom—to monitor stock levels and identify optimal shelf display ratios. The analytics team uses AI-generated images to determine when products need to be restocked or discounted, reducing waste by prompting timely markdowns for items nearing expiration.

Minor improvements in promotion efficiency, enabled by AI, have a significant impact in Southeast Asian markets, where price sensitivity is high.

Additionally, AI-powered systems are being deployed to help manage labour resources through automated scheduling, workload balancing, and prioritisation of tasks. These capabilities are beneficial for both labour-constrained economies such as Japan and South Korea and fast-growing markets in Southeast Asia.

Rise of Agentic AI Systems in Retail

Agentic AI refers to systems capable of understanding user goals, planning steps, working within constraints (such as dietary requirements or budgets), and executing tasks across platforms. According to Dandey, such systems can take instructions like "Plan five dinners for a family of four, mostly Asian recipes, no shellfish, in under 45 minutes," and then create recipes, generate shopping lists, and add items to online shopping carts autonomously.

These personalised AI agents are particularly well-suited to APAC retail habits, where frequent shopping for fresh ingredients and preference for local cuisines is common. Agentic AI integration is also supported by the region’s widespread use of digital wallets, messaging apps, and delivery services, making end-to-end automation more seamless.

However, challenges remain. Privacy and data security, the need to accurately handle sensitive information (such as allergen warnings), and the importance of robust localisation—including language nuance and local food preferences—are ongoing concerns as adoption accelerates.

Source: artificialintelligence-news.com