The Retail Revolution Is Here
KPMG's latest global report reveals that AI has moved from experimental to essential in retail, with 64% of consumer and retail CEOs making it their top investment priority. From personalized shopping agents to automated stock replenishment, leading retailers worldwide are using AI to transform every aspect of their operations, from strategy to storefront.
The numbers tell a compelling story: 82% of retail executives now believe that embracing AI creates a definitive competitive edge in today's market. This isn't about futuristic technology anymore, it's about survival and growth in an increasingly digital marketplace where customer expectations are higher than ever.
The report showcases real-world case studies of retailers across the globe who are already reaping the benefits. These companies are using AI to boost productivity, enhance customer experiences, and unlock new efficiencies while keeping people at the center of change.
What makes this particularly significant is the focus on practical implementation. The research emphasizes that success comes from aligning teams, building trust, leveraging the right data and technology, and making AI work for both operations and customers.
According to Mattias Hansson, Sector Lead for Consumer & Retail at KPMG Sweden, AI helps businesses focus on high-impact tasks by increasing efficiency and freeing up time for key priorities. The best-in-class retailers are becoming even better by spending time on what truly makes a difference.
How This Impacts MSMEs in Malaysia
For Malaysian retailers and e-commerce businesses, this report is a wake-up call. While your larger competitors are investing heavily in AI, the good news is that AI tools are now accessible and affordable even for small and medium enterprises.
Malaysian consumers are increasingly digital-savvy, with high expectations for personalized service and seamless shopping experiences. AI can help you compete with bigger brands by offering personalization, instant customer service through chatbots, and smarter inventory management, all without hiring large teams.
The local retail landscape is highly competitive, with thin profit margins being the norm. AI-powered inventory optimization can reduce overstock and stockouts, potentially saving 15-30% on inventory costs while ensuring popular items are always available.
For Malaysian businesses operating on platforms like Shopee, Lazada, or TikTok Shop, AI can automate product descriptions, optimize pricing dynamically, and provide 24/7 customer support in multiple languages. This levels the playing field against larger competitors who have bigger teams and budgets.
The cost of NOT adopting AI is becoming clearer. If 82% of global retail executives see AI as a competitive advantage, Malaysian retailers who delay adoption risk falling behind not just international competitors, but also forward-thinking local businesses.
What You Should Do to Adopt/Adapt This
Start with one high-impact area rather than trying to transform everything at once. Consider implementing an AI chatbot for customer service, AI-powered inventory forecasting, or personalized product recommendations, whichever addresses your biggest pain point right now.
Leverage existing platforms that have built-in AI features. Many e-commerce platforms, point-of-sale systems, and marketing tools now include AI capabilities, making adoption easier and more affordable than building custom solutions from scratch.
Invest in understanding your data first. AI is only as good as the data it works with, so ensure you're collecting customer behavior data, sales patterns, and inventory information systematically.
Seek guidance from AI consultants who understand both the technology and the Malaysian business context. They can help you identify quick wins, avoid costly mistakes, and ensure your AI investments deliver measurable ROI rather than becoming expensive experiments.
Reference: https://kpmg.com/se/en/insights/ai/ai-in-retail-global-lessons-from-strategy-to-storefront.html
Ready to harness AI for your retail business?
Infinitee Solutions helps Malaysian businesses like yours transform AI opportunities into measurable results without the hassle, from customer service automation to inventory optimization. Contact us now to discover how AI can give you the competitive edge the global leaders are already enjoying.