Nearly half of Malaysian retailers plan to invest in artificial intelligence (AI)-driven or agentic commerce solutions this year as they feel automation will unlock growth even as security risks, integration costs and consumer distrust threaten wider adoption.
The Adyen Index 2026 Malaysia Retail Report found that 47% of retailers intend to increase investment in technologies that allow AI to support, or autonomously manage, product discovery, purchasing decisions and checkout.
Retailers are already deploying AI across marketing and promotions at 40%, customer service and customer experience at 39% each, and operational efficiency at 37%.
Awareness of agentic commerce is rising rapidly, with 85% of Malaysian retailers familiar with the concept and 51% saying they understand it well enough to explain it confidently.
The investment push follows strong consumer adoption of AI-assisted shopping. Some 74% of Malaysians now use AI assistants to discover products, find inspiration and support purchasing decisions.
However, the shift towards fully autonomous shopping remains a challenge, with 52% uncomfortable allowing AI to complete purchases on their behalf.
Adyen Malaysia country manager Soon Yean Lee said the transition from AI shopping assistants to agentic commerce was only beginning.
“The ultimate challenge will be building trust across the entire shopping journey, especially at checkout, where security, reliability and control matter most,” he said.
Retailers remain concerned that greater automation could weaken their direct relationships with customers.
Some 41% cited maintaining customer relationships and brand control as a key barrier, while 39% highlighted data privacy, security and compliance risks.
Payment performance is another pressure point. Nearly all retailers surveyed, or 97%, experienced payment-related issues during the past year, while 94% were targeted by or fell victim to payment fraud.
Among consumers, 59% said payment errors damaged their perception of a business, 26% had abandoned a purchase over security or trust concerns and 15% would switch to a competitor after a poor payment experience.
Retailers also face the technical challenge of connecting their businesses to multiple AI platforms, each using different product-data standards and checkout processes.
Without an open and interoperable system, supporting every new AI platform could become costly and resource-intensive, particularly for large retailers with complex operations.
Malaysia Retail Chain Association president Datuk Liew Bin said retailers could no longer rely on price competition alone.
They must instead use technology to deliver convenient, consistent and trustworthy shopping experiences that build long-term loyalty.
For Malaysian retailers, AI investment is gathering pace. But the winners in the next phase of commerce may not be those that automate fastest, they will be those that make automation secure, seamless and trusted.
