Malaysia's AI adoption accelerates, but scaling remains a challenge

Malaysia's adoption of artificial intelligence (AI) is rapidly growing, with over 3.4 million businesses now utilizing at least one AI tool. However, the challenge lies in scaling these experiments into long-term, company-wide capabilities.

According to a study commissioned by Amazon Web Services (AWS) and conducted by Strand Partners, 38% of Malaysian businesses use AI regularly, compared to 27% in 2025. This marks an increase of nearly one million businesses over the past year. Despite this growth, only 16% of businesses have a formal AI strategy, and 19% have a roadmap to scale AI across multiple functions.

While many businesses believe AI will transform their industry, only 19% have a roadmap for scaling AI. Most businesses are currently focused on basic applications, such as public chatbots and ready-made tools to streamline existing processes.

To move from experimentation to meaningful, repeatable AI capabilities, Malaysia needs to focus on data, skills, governance, business strategy, and the technology ecosystem. External AI providers, consultants, and software vendors play a crucial role in this process, as they can help businesses develop AI strategies, integrate systems, and train their workforce.

Local AI solution providers can also be instrumental in tailoring AI solutions to specific industries, making the technology more accessible to smaller businesses and organizations lacking resources or specialized talent.

Examples of locally developed AI solutions include CareDoct, a Malaysian healthcare technology company. Their AI operating layer helps reduce administrative workloads in hospitals, with real-time transcription, hands-free voice orders, and automated consultation notes. This technology has the potential to save hospitals significant time and resources, demonstrating the practical applications of AI in specific industries.