Kakao, Coupang, Softbank vie for a slice of the AI pie

Propelled by DeepSeek’s blistering momentum and Trump’s battle for digital supremacy, the global AI race is accelerating, with e-commerce giants and startups alike leveraging the technology to redefine digital shopping experiences. Nowhere is this more evident than in Asia, where companies like Coupang and Kakao are integrating AI into their platforms to drive efficiency and consumer engagement. But the question remains: Who will lead the AI-powered retail revolution? APAC competition heats up China, South Korea, and Japan are rapidly deploying AI-driven solutions to enhance e-commerce operations. Coupang, South Korea’s leading e-commerce platform and the owner of Farfetch, is making aggressive moves into the luxury fashion and beauty sectors. With the launch of its luxury beauty shopping platform, R.Lux, in 2024, the conglomerate aims to shift from mid-range consumer goods to premium offerings, competing directly with department stores and established platforms like Olive Young’s Luxe Edit. By integrating AI-driven logistics, Coupang’s Rocket Delivery ensures next-day shipping without customs delays, challenging the dominance of traditional retailers. With brands like Jo Malone and Lancôme set to join its platform, Coupang is betting big on AI-powered personalization and predictive analytics to attract affluent consumers. At the same time, on the heels of DeepSeek’s recent breakthrough in the U.S., OpenAI is investing heavily in its Asian footprint through a strategic partnership with tech conglomerate Kakao. The collaboration, which was announced earlier this week, includes the launch of Kanana, a Korean-language AI assistant, and OpenAI-powered features within KakaoTalk, South Korea’s dominant messaging app. By embedding AI into communication and commerce, Kakao is transforming how consumers interact with brands and make purchasing decisions. Kakao and OpenAI’s partnership arrives just one day after SoftBank’s $3 billion investment in OpenAI, a deal that underscores Japan’s commitment to AI-driven business transformation. Through its newly formed SB OpenAI Japan, SoftBank intends to create tailored AI solutions for enterprises, solidifying its role as a major player in the global AI landscape. Western startups pave the way for e-commerce innovation While Asian giants focus on AI-powered logistics and platform integration, Western startups are pioneering AI-driven insights and piloting new infrastructure for e-commerce. One standout case study is Plot, a social listening AI startup that just secured $4.1 million in funding. Unlike traditional tools that rely on captions and hashtags, Plot’s AI tool extracts insights directly from short-form video content across TikTok, Instagram Reels, and YouTube Shorts. As video content is set to account for 82% of global internet traffic by 2025, according to data provided by tech hub Cisco, brands need better ways to track organic user-generated content (UGC). Plot’s AI can detect products in videos even when creators don’t tag them, helping brands surface authentic marketing opportunities that might otherwise go unnoticed. With backing from investors like Alexis Ohanian’s Seven Seven Six and Sophia Amoruso’s Trust Fund, Plot is positioning itself as a game-changer in AI-driven marketing analytics. A case of winning or falling behind Asian companies are deploying AI to optimize logistics, enhance customer experiences, and break into new markets. Coupang’s seamless delivery system and Kakao’s AI-powered ecosystem highlight how the region is using AI to scale e-commerce. Meanwhile, Western startups like Plot are focusing on AI-driven insights, helping brands navigate the explosion of digital content. With AI reshaping global e-commerce, the competition is no longer just about who sells the most — it’s about who understands consumers the best. Whether through real-time logistics or deep social listening, the companies that harness AI most effectively will define the future of online shopping.

Softbank, Coupang, Kakao vie for AI dominance — can the West keep up?

Upgrade to Pro

Sectors

Insights

Company

Softbank, Coupang, Kakao vie for AI dominance — can the West keep up?