Date Published: 6 May 2025

The Rise of AI in E-commerce: Personalized Shopping Experiences for Malaysians

Malaysia’s online shopping scene has exploded in recent years. Fueled by high smartphone adoption and broad internet access (over 80% of Malaysians are online), consumers are flocking to e-commerce platforms. Large platforms dominate: Shopee remains the leader (for example, in Ramadan 2024 it sold about USD 500 million worth of goods vs. Lazada’s USD 31 million), and social-commerce sites like TikTok Shop are also gaining market share. In short, Malaysia is one of Southeast Asia’s fastest-growing e-commerce markets, driven by tech-savvy consumers and major platforms investing in the sector.

Table of Contents

1. AI in Product Recommendation

2. AI-Powered Customer Support

3. AI in Marketing and Advestising

4. AI in Pricing, Inventory, and Operations

5. Local AI Innovations: SalesAI and More

6. Conclusion

7. FAQs

AI in Product Recommendations

One of the most visible uses of AI is product recommendation engines. When you browse Shopee or Lazada, AI is busy suggesting items you might like. These systems use techniques like collaborative filtering (based on what similar users bought) and content analysis to find relevant products. In Malaysia, e-commerce giants leverage these algorithms heavily: for instance, Lazada and Shopee track your behavior to suggest products tailored to you.

Personalized recommendations really work. Research shows tailored suggestions can raise sales significantly. In fact, one study found personalized product recommendations can increase conversion rates by up to 15%. By showing you products you’re likely to want (or complementary items at checkout), AI makes each customer more satisfied and more likely to buy. Malaysian shoppers have come to expect this: try browsing for kitchen appliances, and your next app visit will highlight cooking gadgets or special offers on blenders.

• Curated Homepages: Instead of a generic homepage, AI can rearrange the layout for each user. A fashion shopper might see a “New Arrivals” section featuring clothing, while an electronics fan sees the latest gadget deals. Lazada, for example, even uses augmented reality (AR) to personalize product experiences—its new “skin analyser” tool recommends skincare products based on a user’s selfie.


•Trending and Local Picks: AI can also mix in bestsellers and local favorites. During Ramadan, AI might boost sales of prayer mats or gift sets, reflecting the buying surges during that period. In general, personalization engines help platforms highlight the most relevant items in each category, which benefits both shoppers (finding products quickly) and sellers (reaching interested buyers).

The result is a more engaging shopping experience. Instead of endless scrolling, Malaysian consumers find products that resonate with their tastes. As competition heats up, platforms continually refine their AI to keep users hooked and as one report noted, companies are investing heavily in AI to create unique, curated experiences for local markets

AI-Powered Customer Support

AI isn’t just used behind the scenes; it also powers customer-facing services. Chatbots and virtual assistants are now common on Malaysian e-commerce sites and social apps. These AI agents can answer questions about products, orders, and policies instantly — often without human intervention. For example, Shopee’s AI chatbot “Sophie” handled 18 million customer support chats in 2023, successfully resolving about 80% of inquiries on its own. This 24/7 support keeps customers happy even outside business hours.

Conversation AI is especially big in Malaysia because of the massive use of messaging apps. Over 30 million Malaysians use WhatsApp monthly, so many businesses deploy AI chatbots on WhatsApp to engage customers. SalesAI is one local solution that makes this easy: it’s a no-code platform for building WhatsApp chatbots. With SalesAI, a store can set up an automated assistant that answers FAQs,, products. Because SalesAI supports English, Chinese, and Malay, it can talk to virtually all Malaysian customers.

• 24/7 FAQs and Order Tracking: An AI bot can instantly answer questions like “Is this T-shirt in stock?” or “When will my package arrive?” even at midnight. This reduces the load on human agents (who can then focus on complex issues) and gives shoppers fast answers. According to local AI trend reports, over 90% of businesses saw positive ROI from using chatbots and voice assistants in 2025.


• Lead Capture and Sales: Beyond support, chatbots can help sell. A bot might prompt a visitor to join a loyalty program or remind them about items they viewed. For example, a WhatsApp bot built with SalesAI could notify a customer when an item in their wishlist goes on sale. Because these bots can operate in multiple languages and go live during holiday campaigns, Malaysian SMEs can scale personalized outreach without a large team.

AI in support thus personalizes the service side of shopping. Instead of filling out email forms and waiting, customers chat with an assistant that knows their history. This leads to happier shoppers and streamlined operations. It also fits local habits: many Malaysians prefer chatting for customer service, so deploying AI in WhatsApp and Facebook Messenger is a natural fit for this market.

AI in Marketing and Advertising

Personalization extends to marketing as well. AI helps tailor advertising and promotional content to individual customers, across email, SMS, social media, and more. Rather than sending the same blanket deal to everyone, businesses can segment their audience and craft personalized campaigns. For example, an online bookstore might automatically email science-fiction fans about a new novel, while tech gadget enthusiasts see a different message. This targeted approach greatly increases relevance.


Studies confirm the impact: personalized email campaigns can drive up to 200% higher click-through rates and a 15% bump in order value. In practice, Malaysian marketers use AI tools to optimize their outreach:

• Automated Reminders: AI can automatically nudge shoppers who showed purchase intent. If someone adds items to a cart but doesn’t check out, the system may send a friendly reminder via WhatsApp or email.


• Dynamic Ad Targeting: Platforms like Facebook and Google already use AI to place ads. Malaysian sellers use these tools to show products to users whose behavior matches a profile. For example, TikTok Shop’s algorithm pushes video ads to users based on their viewing history, making impulse buys easier.

• Localized Campaigns: Malaysia’s rich calendar of festivals is a boon for marketers. AI systems can schedule and customize promotions for events like Chinese New Year, Ramadan, or Merdeka Day. For instance, an AI tool might automatically generate a Merdeka Day flash sale on patriotic merchandise, or target ads for festive clothing before Deepavali. According to one AI trends report, weaving local festivities into marketing workflows is a key strategy for Malaysia.

• Creative Optimization: Some advanced AI tools can even help craft the message itself. They generate multiple versions of headlines or images and run A/B tests to see which variant performs best. Over time, the AI learns which language and visuals resonate with Malaysian audiences (perhaps Malay-language ads perform better in certain regions, for example). This “AI marketer” approach accelerates campaign refinement.

In summary, AI makes marketing in e-commerce more efficient and effective. Campaigns become data-driven and customer-centric. For Malaysian businesses, this means higher engagement: ads and offers align with what people actually want. It also means smaller firms can compete – even a small store can send well-timed promotions thanks to automated AI workflows.

AI in Pricing, Inventory, and Operations

AI is also changing the behind-the-scenes operations of e-commerce. Dynamic pricing is one example: instead of fixed prices, algorithms adjust prices based on demand, stock levels, or competition. While dynamic pricing is more common in industries like air travel, e-retailers can use it too, for example, offering flash-deal pricing during slow hours or automatically dropping prices on overstocked items. This kind of optimization can boost revenue, though Malaysian consumers do expect price transparency.

Inventory management is another area. AI can forecast demand, using sales data and external factors to predict which products will be hot sellers. For instance, local AI tools might analyze past Ramadan shopping patterns or current search trends to suggest stocking more certain items. According to a recent report, AI helps e-commerce platforms “maintain stock levels and avoid unnecessary supply chain disruptions” by predicting demand patterns.

Security and payments also benefit from AI. Malaysia’s major payment gateways use machine learning to spot fraud. For example, iPay88 (a popular Malaysian payment processor) employs AI to monitor transaction patterns in real time and flag suspicious behavior. This helps keep both merchants and consumers safe when shopping online.

• Demand Forecasting: By crunching historical sales and external data, AI can suggest which products to reorder before they sell out. This ensures popular items are always available during peak sales periods. As one industry observer notes, this predictive use of AI is helping Malaysian retailers avoid stockouts during big events


• Fraud Detection: AI-powered fraud filters analyze transactions instantly. For example, iPay88 uses machine learning to detect unusual credit-card activity and block fraudulent orders. This builds trust in e-commerce, which is essential for customers using online payments (especially since many Malaysians are eager users of e-wallets and online banking).

Together, these operational uses of AI mean smoother shopping experiences. Prices can adjust smartly, shelves (physical or virtual) stay stocked intelligently, and checkout processes become safer. For Malaysian SMEs, access to these AI tools (often through their e-commerce platforms) can make a big difference in efficiency and cost-savings.

Local AI Innovations: SalesAI and More

Malaysia has homegrown AI solutions tailored to local businesses. One example is SalesAI, a platform built for Malaysian SMEs to automate sales and support on chat channels. Unlike generic global tools, SalesAI is designed for local needs: it offers no-code chatbot building, multilingual support (English, Chinese, Malay). A small retailer can use SalesAI to deploy a WhatsApp chatbot in minutes. The bot answers FAQs, shares product promotions, and collects lead information all fully automated. SalesAI’s 24/7 coverage means businesses never miss a customer message, even on holidays.

Other local tech companies are also contributing. For instance, iPay88 (though best known as a payment gateway) is a Malaysian firm pushing AI in fintech with its fraud-detection models. Social commerce players like Shopee and Lazada continuously adapt their international AI tools for Malaysia’s market (for example, Lazada’s AR beauty feature). TikTok Shop, backed by the global TikTok brand, uses highly localized recommendation AI to fit Malaysia’s diverse user base.

All these examples show that Malaysian e-commerce is not just importing AI it’s innovating. Local startups and initiatives are enabling businesses (even small ones) to personalize at scale. SalesAI, in particular, represents how a Malaysian tool can simplify AI adoption: a store owner doesn’t need to hire data scientists to use it. This democratization is key to spreading personalization widely in Malaysia’s market.

Conclusion

Artificial Intelligence is no longer just a futuristic concept, it is actively reshaping the way Malaysians shop online. From smart recommendations to automated customer service, AI is delivering highly personalized, efficient, and localized experiences for consumers. For businesses, the adoption of AI means not only enhanced customer satisfaction but also increased sales conversions, better inventory management, and more competitive positioning in the regional market.

FAQs

How is AI used by Malaysian e-commerce companies today?

Many local platforms use AI for chatbots, recommendation engines, fraud detection, dynamic pricing, and predictive inventory with strong adoption from marketplaces like Lazada and Shopee.

Is AI replacing human jobs in e-commerce?

AI isn’t about replacing people, it’s about enhancing productivity. It handles repetitive tasks so your team can focus on creativity, customer engagement, and strategic growth.

Does AI require a big investment to get started?

Not necessarily. Tools like SalesAI are designed for SMEs, offering scalable solutions that start with basic automation and can grow with your business needs.

Copyright @2025 Chris Business Solution Sdn Bhd (1118226-W). All Rights Reserved.