Malaysian eCommerce sellers lag in AI adoption despite high familiarity

On April 8, 2025, a research report titled 'Bridging the AI Gap' was published by Lazada, a leading eCommerce platform in Southeast Asia. This report, developed in collaboration with Kantar, surveyed 1,214 eCommerce sellers from countries including Malaysia, Indonesia, Philippines, Singapore, Thailand, and Vietnam to understand the trends, challenges, and opportunities surrounding AI adoption in the region. Within the findings, it was revealed that Malaysian online sellers have only incorporated AI into 26% of their business processes, which is considerably less than the regional average of 37%. The research highlighted that Malaysian sellers exhibit a strong awareness of AI, with 69% demonstrating familiarity, paralleling the SEA average of 68%. However, there remains a significant gap between awareness and actual implementation. Despite 89% of Southeast Asian sellers acknowledging the productivity benefits of AI, only 77% of Malaysian counterparts share this view. Furthermore, the transition from traditional manual processes to AI-driven solutions remains challenging, with 93% of sellers in the region agreeing on the need for workforce upskilling to effectively use AI technologies. In the hierarchy of AI adoption, Indonesia and Vietnam lead with an adoption rate of 42%, followed by Singapore and Thailand at 39%. The Philippines stands at 32%. The data indicates that a substantial number of Malaysian sellers are still operating as AI Agnostics, with 42% not having integrated AI into their businesses, a stark contrast to the SEA average of 26%. In addition to exploring sellers’ readiness levels through defined archetypes—AI Adepts, Aspirants, and Agnostics—the report illustrates that while 15% of Malaysian sellers are classified as AI Adepts (employing AI in over 80% of their operations), this is well below the SEA average of 24%. The report's implications suggest that while the potential for AI adoption exists within the framework of Malaysian eCommerce, overcoming the barriers of traditional practices and employee preferences for familiar tools will be key to enhancing productivity and competitiveness. The findings underscore Lazada’s initiative to invest in advanced AI tools, such as AI Smart Listing, which has already garnered positive feedback from sellers using the platform. As Malaysian sellers seek to enhance their operations, understanding and embracing AI will be critical to closing the gap in the regional eCommerce landscape.