The Future of Marketing: Personalized Customer Engagement through Artificial Intelligence in the Malaysian E-commerce Landscape

This research examines how Artificial Intelligence (AI) is used in adapting customer engagement in e-commerce in Malaysia. Many companies are turning to chatbots, recommendation systems, and personalized analytics in AI to enhance customer service and business operational productivity. However, AI integration among Small and Medium-sized Enterprises (SMEs) in Malaysia is still in its early development phases. Technological limitations, budget constraints, and existing regulations pose significant challenges. The study employs a qualitative approach by examining academic journals, industry reports, policy documents, and case studies to investigate the problems and challenges related to AI in marketing personalization. The conceptual framework helps study how an organization’s structure and external market dynamics could influence the adoption of AI in organizations. AI technology is found to improve customer satisfaction, drive brand loyalty, and enhance sales performance. Data privacy concerns, limited ethical guidance, weak technology infrastructure, and a lack of technical expertise are issues that have not been properly addressed. The recommendations include incorporating fairness concepts into AI applications, collecting customer feedback, and preparing employees in the workforce for AI technology. This research offers new insights into AI personalization in Malaysia, enabling businesses and policymakers to formulate ethical and comprehensive guidelines for digital advancement.