Malaysian shoppers are increasingly embracing artificial intelligence (AI), with 58 percent saying they use it to enhance how they shop, a report showed Wednesday.

This places the country well ahead of the global average, where only 37 percent of consumers report using AI in their shopping journey, according to the newly released Adyen Retail Report 2025.

Drawing on responses from 41,000 consumers and 14,000 merchants across 28 markets – including 1,000 consumers and 500 merchants in Malaysia – the report shows that Malaysians are among the most active users of AI in shopping, turning to it for inspiration and smarter buying decisions.

It is noted that from ChatGPT to intelligent search tools, AI is reshaping how consumers discover new brands and products.

In Malaysia, 71 percent say AI spark ideas for meals, outfits, and purchases, while 69 percent credit it for introducing them to brands they wouldn’t have found otherwise.

Nearly one in five (18 percent) say their best product ideas have come from AI.

With 60 percent open to making purchases directly through these tools in the future, the appetite for AI-driven commerce continues to grow.

“We’re seeing a shift from digital convenience to digital intelligence,

“We are likely entering an era where AI acts as a personal stylist or shopping assistant, curating outfits, surfacing new brands and tailoring suggestions to each individual,” said Soon Yean Lee, Country Manager, Malaysia, Adyen.

As AI transforms how Malaysians discover new products, where they choose to shop and what they expect from each channel is evolving just as rapidly.

The appeal of physical retail remains strong in Malaysia, largely because consumers value tangible, sensory experiences.

Over half want to see and feel a product before buying (57 percent), try items beforehand (49 percent), and enjoy the immediate gratification of walking out with their purchase (53 percent) – preferences that rank among the highest in Asia Pacific.

But today’s shoppers are also seeking more from their in-store visits, not just product interaction, but engaging, elevated experiences, said the report.

In fact, 55 percent want retailers to make in-store shopping more exciting, with features like augmented reality (AR)/ virtual reality (VR) experiences, in-store cafes, or special events.

Online shopping, meanwhile, appeals for different reasons, primarily speed (62 percent), convenience (54 percent), and the ability to find better deals (53 percent).

Half of Malaysian shoppers (50 percent) also turn to online platforms for access to a wider selection of products that aren’t available in local stores.

And it’s not just websites and apps – digital shopping options now extend across multiple channels, with social commerce on the rise.

In fact, 57 percent of Malaysians shop directly on social media, averaging six times a month.

The report also showed today’s shoppers want more than just options, they expect shopping experiences to be convenient, engaging, and personalized.

This means not only offering multiple channels, but ensuring they’re seamlessly connected.

As Malaysian shoppers raise the bar for what a great retail experience looks like, the report highlighted that businesses are responding by rethinking how they operate, both in-store and online.

From reimagining checkout flows to creating more immersive, personalized experiences, retailers are actively investing in tools and technologies that match consumer expectations.

According to the report, 57 percent of Malaysian businesses plan to invest in technology that enhances the customer experience, whether by introducing new ways to pay or offering self-service kiosks.

Meanwhile, 58 percent are focusing on streamlining the checkout process with features like queue-busting and one-click purchases to reduce friction and boost efficiency.

Beyond the store, 34 percent of retailers plan to invest in social commerce in 2025.

AI is also playing a growing role in this transformation. Beyond marketing, retailers are tapping into its potential to drive innovation, reduce fraud, and optimize performance across the customer journey, said the report.

Whether it’s powering personalization, identifying genuine shoppers, or improving payment success rates, AI is increasingly viewed as a strategic asset.

“AI is increasingly becoming a key driver of retail performance,

“Retailers generate large volumes of payments data daily, and AI helps unlock this value to drive conversions at scale,” said Lee.

As retailers continue to adopt new technologies and expand their channels, the next crucial step is integrating these touchpoints effectively, said the report.

Yet only 52 percent of Malaysian businesses currently offer unified commerce, while another 26 percent plan to implement it within the next year.

It is noted that unified commerce is fast becoming a competitive necessity.

For retailers, unified commerce brings all channels into a single system, enabling consistent pricing, real-time inventory, and a seamless customer experience regardless of where or how shoppers engage.

It also unlocks consolidated payment data, deeper insights into customer behavior, and operational efficiencies that reduce costs and complexity.

For consumers, it means a smoother, more flexible experience like the ability to browse online, buy in-store, and return via an app, with consistent pricing and real-time inventory across all channels.

Ultimately, it’s about meeting customers wherever they are, with the flexibility and agility they’ve come to expect in the digital age, according to the report.

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