Malaysian shoppers are increasingly embracing artificial intelligence (AI), with 58% saying they use it to enhance how they shop. This places the country well ahead of the global average, where only 37% 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.
From ChatGPT to intelligent search tools, AI is reshaping how consumers discover new brands and products. In Malaysia, 71% say AI spark ideas for meals, outfits, and purchases, while 69% credit it for introducing them to brands they wouldn’t have found otherwise. Nearly one in five (18%) say their best product ideas have come from AI. With 60% open to making purchases directly through these tools in the future, the appetite for AI-driven commerce continues to grow.
Commenting on the findings, Soon Yean Lee, Country Manager, Malaysia, Adyen, said “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.”
Who’s Shopping Where, and Why
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%), try items beforehand (49%), and enjoy the immediate gratification of walking out with their purchase (53%) – 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. In fact, 55% want retailers to make in-store shopping more exciting, with features like AR/VR experiences, in-store cafes, or special events.
Online shopping, meanwhile, appeals for different reasons, primarily speed (62%), convenience (54%), and the ability to find better deals (53%). Half of Malaysian shoppers (50%) 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% of Malaysians shop directly on social media, averaging six times a month.
Today’s shoppers want more than just options, they expect shopping experiences to be convenient, engaging, and personalised. This means not only offering multiple channels, but ensuring they’re seamlessly connected.
Are Retailers Keeping Up?
As Malaysian shoppers raise the bar for what a great retail experience looks like, businesses are responding by rethinking how they operate, both in-store and online. From reimagining checkout flows to creating more immersive, personalised experiences, retailers are actively investing in tools and technologies that match consumer expectations.
According to the report, 57% 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% 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% 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 optimise performance across the customer journey. Whether it’s powering personalisation, identifying genuine shoppers, or improving payment success rates, AI is increasingly viewed as a strategic asset.
Commenting on how businesses are applying AI, Lee shared, “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. Earlier this year, we launched Adyen Uplift, an AI-powered payment optimisation suite that helps businesses identify genuine shoppers more effectively, reduce fraud, and increase payment success rates with minimal friction.”
The Ongoing Importance of Unified Commerce
As retailers continue to adopt new technologies and expand their channels, the next crucial step is integrating these touchpoints effectively. Yet only 52% of Malaysian businesses currently offer unified commerce, while another 26% plan to implement it within the next year.
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 behaviour, 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.
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