Artificial intelligence is playing a growing role in the way consumers shop across Asia Pacific, with more than a third now relying on AI tools to assist with purchase decisions, according to Adyen’s 2025 Annual Retail Report.
Based on a survey of 41,000 consumers in 28 markets, including Singapore, Australia, Hong Kong, India, Japan, and Malaysia, the report shows that 38 percent of consumers in the region are using AI to shop—a 39 percent increase from the previous year.
Of these, 11 percent are first-time users within the last 12 months, signaling broad-based growth across age groups.
The report highlighted that AI is influencing consumer behavior through enhanced personalization and convenience.
Around 63 percent of respondents said AI helps inspire purchase decisions, from clothing to food, while 62 percent use it as a discovery tool to find unique brands and experiences. Nearly six in ten consumers are open to making purchases via AI platforms in the future.
While adoption is highest among Generation Z, with 74 percent of Malaysian Gen Z users and 64 percent in Hong Kong engaging with AI tools, older demographics are increasingly participating.
In Singapore, Gen X and Millennials recorded notable year-on-year increases in AI use—45 percent and 28 percent, respectively. Even among those aged 60 and above, 30 percent reported using AI to support purchases.
Retailers are responding to this trend by prioritizing investment in AI technologies. More than a third of businesses plan to deploy AI to enhance sales, marketing, product innovation, and fraud prevention.
Currently, 40 percent of retailers in the region already use AI to combat fraudulent transactions by analyzing payments data to detect irregular patterns.
Despite optimism around AI, the report also notes rising consumer concerns over data security. Around 26 percent of consumers expressed worry about fraud, and one in five avoid storing payment details on devices as a precaution.
Omnichannel retail remains a challenge. While 46 percent of APAC retailers enable shopping across digital and physical channels, only 19 percent of others plan to do so in the coming year.
At the same time, 46 percent of consumers expect businesses to offer consistent shopping experiences across touchpoints, including websites, social media, and apps.
Social commerce is gaining ground, with 36 percent of APAC consumers shopping through social media. However, physical stores remain relevant: 42 percent of shoppers prefer a hybrid of in-store and online experiences, while 35 percent favor brick-and-mortar over digital channels.
The report concludes that the future of retail in Asia Pacific will be shaped by the convergence of AI-driven personalization, consumer trust, and omnichannel readiness, as brands work to meet rising expectations in a rapidly evolving digital economy.