PETALING JAYA: Malaysian consumers are adopting artificial intelligence (AI) in their shopping habits at a rate far higher than the global average, positioning the country as one of the fastest-growing AI-driven retail markets in the world, according to the Adyen Retail Report 2025.
The study, released recently by global financial technology platform Adyen, revealed that 58% of Malaysian shoppers now use AI to enhance their shopping experience, compared with 37% globally.
The findings are based on surveys of 41,000 consumers and 14,000 merchants across 28 markets, including 1,000 consumers and 500 merchants in Malaysia.
AI tools, ranging from chatbots such as ChatGPT to intelligent search engines, are becoming integral to how Malaysians discover and purchase products.
The report found 71%d of local consumers use AI for inspiration on meals, outfits and purchases, while 69% credited AI for introducing them to brands they would not have encountered otherwise.
Nearly one in five (18%) said their best product ideas came from AI, and 60% indicated openness to making purchases directly through AI platforms in future.
“We’re seeing a shift from digital convenience to digital intelligence,” said Adyen Malaysia country manager Soon Yean Lee.
“AI is increasingly acting as a personal stylist or shopping assistant, curating outfits, surfacing new brands and tailoring suggestions to each individual.”
Despite Malaysia’s strong embrace of AI and e-commerce, physical retail remains resilient. More than half of consumers prefer in-store shopping because they value sensory experiences: 57% want to see and feel products before buying, 49% like to try items beforehand and 53% enjoy the instant gratification of walking away with their purchases.
However, shoppers expect more than just product interaction. The report found 55% of Malaysians want brick-and-mortar stores to offer more engaging experiences, such as augmented reality or virtual reality features, in-store cafés or exclusive events, to keep pace with evolving expectations.
Online platforms, meanwhile, appeal for different reasons: speed (62%), convenience (54%) and better deals (53%).
Half of respondents also value the broader selection available online, particularly products not found in local stores.
Social commerce is gaining traction too, with 57% of Malaysians shopping directly via social media platforms an average of six times per month.
With shoppers demanding convenience, personalisation and seamless experiences, retailers are re-evaluating how they operate.
The report noted that 57% of Malaysian businesses plan to invest in technology to enhance customer experience, including self-service kiosks and new payment options, while 58% are focusing on streamlining checkout with features like one-click purchases.
A further 34% intend to ramp up investments in social commerce this year.
AI is central to these efforts, extending beyond marketing to fraud prevention, payment optimisation and operational efficiency.
“Retailers generate large volumes of payments data daily, and AI helps unlock this value to drive conversions at scale,” Lee said, referencing Adyen’s recently launched AI-powered payment suite designed to reduce fraud and improve transaction success rates with minimal friction.
As retailers diversify their channels, integrating them effectively is becoming crucial. The report highlighted that only 52% of Malaysian businesses currently offer unified commerce, which merges online, in-store and social channels into a single system, though another 26% plan to adopt it within the next year.
Unified commerce enables consistent pricing, real-time inventory management and seamless customer journeys, such as browsing online, buying in-store and returning via an app.
For businesses, it offers deeper insights into consumer behaviour and operational efficiencies that reduce costs and complexity.