Investing.com — Sea’s recent share-price weakness has renewed debate over whether artificial intelligence could upend the company’s e-commerce position, but Bernstein argued those fears are overstated.
In a new note, analyst Venugopal Garre said Sea is “unlikely to be displaced purely by AI,” citing the company’s entrenched infrastructure and partnerships with major AI developers.
The analyst noted that Sea is pursuing an “AI partner, not AI lab” strategy, opting to avoid heavy capital expenditure on in-house models and instead integrating technology from OpenAI and Google.
The firm also mentioned that Sea has become “a key commerce partner for OpenAI’s Operator,” giving the agent direct access to Shopee for shopping tasks.
With Google, Sea is co-developing an “agentic shopping prototype” for use across Shopee and Google platforms, including agent-managed payments through Shopee’s wallet.
Bernstein believes the emerging agentic-AI narrative often appears largely supply driven, arguing that AI builders “must showcase end uses to justify huge investment” by targeting tasks “many humans do not mind doing.”
The analysts added that in emerging markets, where low-cost labour reduces time pressure, saving a few minutes on shopping offers limited real utility.
Sea’s potential disruption risk remains contained, the firm said, because its full-stack advantage, spanning logistics, fulfilment, and licensed fintech, would be difficult for new entrants to replicate.
“New or small platforms cannot easily ‘ride on AI’ to bypass that infra in Southeast Asia,” Bernstein wrote, adding that Sea and TikTok are the region’s “natural conduits for agentic AI.”
Bernstein stated that Sea’s recent stock slide already reflects earnings concerns and maintained its outperform rating.
Related articles
Sea ’unlikely to be displaced by AI,’ Bernstein says after selloff
Nvidia’s new Alpamayo project: What it means for Tesla?
Wolfe Research outlines eight risks that could spark stock declines in 2026
