Understanding AI Implementation in Digital Advertising Among Retail SMEs in Malaysia

The emergence of Artificial Intelligence (AI) technology has significantly impacted multiple industries, including retail, where digital advertising plays a crucial role in corporate strategies. Despite the growing attention and financial commitment towards AI, there is a notable deficiency in existing research on the strategic planning and future adoption of AI-powered digital advertising in medium-sized retail Small and Medium-sized Enterprises (SMEs) in Malaysia. This paper proposes a conceptual framework to investigate the methods by which these organizations aim to incorporate AI into their digital advertising campaigns. It examines perceived advantages and identifies potential obstacles related to this integration. The framework is based on a thorough examination of existing literature and empirical research. Anticipated results will clarify the perceived benefits, such as greater client targeting, enhanced personalization, and increased operational efficiency. However, obstacles such as exorbitant expenses, intricate technology, and reluctance to adopt new methods may impede effective AI integration. Understanding these dynamics will provide useful insights for SMEs during the initial planning phase of integrating AI, assisting them in navigating complexities and promoting innovation to maintain competitiveness.