KUALA LUMPUR (June 24): Local hypermarket giant Mydin Mohamed Holdings Bhd has seen operational efficiencies since rolling out artificial intelligence (AI) systems at 13 stores across the country.

“Recently, we implemented AI [weighing] scales in the store. Those days we had to train people; we needed to have people who really knew the PLU [price look-up] numbers [of the vegetables], but today anyone [be it] young or old, can learn how to [weigh] products very quickly because you put the product, AI detects what item it is, even if it’s in the plastic,” said Malik Murad Ali, director of IT, digital, human resources, and loss prevention and security at Mydin, at a media roundtable organised by Xilnex Holdings Sdn Bhd on Tuesday (June 23).

According to the press release, retail sales growth has slowed to 2.4% in 2025, down from 5.2% in 2024. Independent research and consulting firm Retail Group Malaysia (RGM) expects the sector to grow 4% in 2026 amid continued cost pressures and softer consumer demand.

Malik said the hypermarket chain is also looking into physical automation in its warehouses and distribution centres. “Another thing that we are working very hard on now is automation. We’re talking about physical AI, robots,” he added.

At present, Malik believes that AI can help retailers achieve at least 1% to 2% in cost savings if implemented across the supply chain.

Yayasan Peneraju CEO Ibrahim Sani and AEON360 Sdn Bhd managing director Low Ngai Yuen were also part of the discussion.

The rolling of AI is to empower the existing workforce, scale operations and increase productivity, stressed the panellists, assuaging concerns that the automation tools will replace human workers.

“It’s never about retrenchment. It’s never about replacing people with AI. It is to really about empowering businesses with AI,” said Ooi Boon Sheng, CEO of Xilnex Holdings Sdn Bhd.

“I have no interest to replace all my colleagues, not at all, but I would like my colleagues to think differently in their scope,” concurred AEON360’s Low.

Low added that good data plays a key role in ensuring the success of AI rollouts. 

“Data is the fuel for AI actually and if the data isn’t done correctly, then there is no field for AI. There’s no intelligence for you to work on because AI will ask you what you want it to be intelligent in [but] you have no source.

“So you need to really understand what kind of data your business has and how can the data be better? In this sense, AI really cannot replace humans,” said Low.