AS we enter 2026, technology trends show enterprises embedding artificial intelligence (AI) directly into their core business models, unlocking new revenue streams and accelerating innovation at scale.
Organisations are moving beyond early experimentation and building AI that is governed, explainable and aligned to national and enterprise priorities.
From sovereign models to quantum-powered AI, the region is shaping an AI ecosystem that is both innovative and trusted.
An IBM study shows how these shifts are paving the way for enterprises to grow strategically and sustainably.
What’s most exciting about Malaysia is that AI innovation is no longer siloed by industry. Its transferable value across sectors is accelerating AI maturity across the region, enabling enterprises to leapfrog traditional development cycles and compete at a higher level.
“As we look to 2026, uncertainty isn’t holding us back – it’s propelling us forward. The organisations that rise are embracing technologies that bring speed, resilience and clarity. We expect AI to shift from experimental to essential. With sovereign AI becoming the foundation of trusted innovation and quantum computing emerging as the next leap, the future is no longer something to predict – it’s something we can shape,” said IBM Malaysia country general manager and country leader Dickson Woo.
In its new report, Five Trends for 2026, the IBM Institute for Business Value identifies the forces that will redefine competitive advantage for the year ahead. From turning volatility into opportunity, to building AI resilience, to preparing for quantum-powered ecosystems, one message cuts through: the future belongs to organisations that can adapt – fast.
Trend No. 1
Fast decision-making will turn disruption into opportunity, but success depends on AI that can act, not just assist.
☻95% of executives say they increasingly need to make fast decisions, and 96% said the highest-stakes decisions they made in 2025 were the right ones.
☻ 90% of executives say they’ll lose their edge if they can’t operate in real time.
Trend No. 2
AI sovereignty is an organisation’s ability to control and govern its AI systems, data, and infrastructure at all times.
Alongside global large language models, indigenous models and sovereign infrastructure are rising to meet needs around data sovereignty, multilingual proficiency, cultural nuance and national security. This signals a structural shift in the global AI landscape.
☻ 93% of executives say AI sovereignty must be part of their 2026 business strategy.
☻ The sovereign cloud market in Asia-Pacific is projected to grow from US$37 billion in 2023 to US$169 billion (RM686 billion) by 2028.
☻ Spending in regulated industries like banking alone will rise from US$14 billion in 2023 to US$66 billion in 2028, a near fivefold increase.
Trend No. 3
Customer trust is the ultimate currency, and transparency provides room for innovation.
Organisations should incorporate transparency into AI-enabled product design from the start and clearly demonstrate the value customers receive in exchange for sharing their data.
☻ 56% of consumers say they’re so excited about cutting-edge, AI-enabled services that they’d accept flaws.
☻ 89% of consumers say they want to know when they’re interacting with AI.
☻ 95% of executives say consumer trust in their AI will define the success of new products and services.
☻ Two-thirds would switch brands – and half would pay more – to avoid hidden AI.
Trend Number 4
Employees no longer fear AI, they want to embrace it, even if that means their roles will change significantly.
☻ 61% of employees expect their roles will change significantly in 2026 due to new technologies and even more (81%) are confident they’ll keep up with future advances.
☻ 63% of employees would work with an AI agent, and nearly half (48%) would be comfortable being managed by one.
☻ 61% of employees say AI makes their job less mundane and more strategic.
Trend No. 5
Quantum advantage will demand strength in numbers.
The timeline to act is shorter than it seems; preparing today is essential for organisations to take advantage of how quantum computing is poised to transform entire industries.
☻ Quantum-ready organisations (QROs) are three times as likely to belong to multiple ecosystems as other organisations.
☻ 79% of executives say ecosystem partners accelerate technology adoption, and 77% say data from these partners improves business outcomes.
☻ 89% of executives say that ecosystem partners will help limit the impact of disruption.
AI as a business transformation driver for industries
The recent IBM report, APAC AI Outlook 2026: Transferable Value across Industries, highlights a fundamental shift in how Asia-Pacific enterprises are now deploying AI. Beyond cost reduction, organisations are leveraging AI to drive growth, business model reinvention, and new revenue streams.
Banking
AI is reshaping banking business models and enabling new revenue streams. For example, AI-enabled embedded finance and trust-as-a-service, powered by predictive risk and compliance, are opening new pathways for growth. Hyper-personalised conversational banking is emerging through AI-powered super apps, while agentic mesh architectures help institutions tackle technical debt and improve agility.
Manufacturing
AI enables predictive autonomous operations, real-time optimisation, and mass personalisation through digital twins. Sustainable, AI-driven supply ecosystems allow manufacturers to optimise resources, track emissions, and align suppliers to environmental goals.
Telecommunications
Operators are adopting an agentic AI operating layer that supports self-managing networks and accelerates product innovation. AI-driven data monetisation ecosystems are emerging as new revenue engines, while AI-native 5G unlocks new revenue from IoT, immersive experiences, and autonomous systems.
Energy and utilities
AI is powering the energy transition by enhancing grid stability, integrating renewables, boosting asset efficiency, and reducing emissions across sectors.
Advancements in Green AI are reducing energy consumption and emissions across the entire value chain.
Public sector
Democratising AI expands access to affordable, responsive public services – from finance and agriculture to healthcare and education, while strengthened governance frameworks reinforce accountability, safety and public trust.
