PETALING JAYA: More than 3.4 million Malaysian businesses now consistently use at least one artificial intelligence (AI) tool, with adoption rising to 38% from 27% in 2025, according to a study commissioned by Amazon Web Services (AWS).
The study, Unlocking Malaysia’s AI Potential 2026, found that nearly one million additional businesses adopted AI over the past year.
However, most businesses have yet to scale their use of the technology, with 67% of AI adopters still focused on basic applications such as public chatbots for routine tasks or ready-made tools to streamline existing processes.
Only 19% of businesses have a formal strategy to scale AI across multiple functions.
AWS Malaysia country manager Hussein Mohd Ali said the next stage of AI adoption would depend on software providers, governance and public-sector leadership.
“Software providers are the scaling engine Malaysia needs. Sector-focused providers that embed AI into the tools businesses already use are the fastest way to move an entire economy from experimentation to real capability,” he said in a statement.
The study found that 57% of businesses primarily source AI capabilities through external providers, consultants or software vendors, while 69% said locally based software providers and AI solution developers are important to their AI adoption.
Among businesses that work with external consultants and providers, 43% use them to develop an AI strategy, 40% for systems integration and maintenance, and 31% for workforce training.
Financial services and manufacturing recorded the highest AI adoption rates, at 53% and 50%, respectively, compared with 38% across Malaysian businesses.
However, the two sectors are at different stages of AI adoption.
In financial services, 64% of businesses have moved beyond experimentation and 42% have a strategy for scaling AI. The sector also leads in governance, with 39% having a formal AI governance framework, compared with 24% across all businesses.
Manufacturers, meanwhile, remain at an earlier stage, with 57% still exploring or experimenting with AI despite 80% expecting the technology to transform the industry.
Manufacturers cited technical or data barriers, workforce capability and limited resources as among the barriers to adoption. Only 15% have a formal AI strategy, while 13% said they felt fully prepared for next-generation AI.
Across all sectors, only 30% of businesses have clearly defined accountability for AI initiatives, 27% conduct regular monitoring or audits, and 18% have documented escalation processes.
The study also found that 72% of businesses said greater AI adoption by the public sector would make their organisations more likely to increase their own use of the technology.
Meanwhile, 74% said government leadership would be important in accelerating AI adoption overall.
Hussein said governance and public-sector leadership would be important in helping businesses move from experimentation to wider adoption.
“Governance and public-sector leadership aren’t separate conversations; they’re what turn that momentum into something durable,” he said.
The study was conducted by Strand Partners for AWS and surveyed 1,000 members of the public and 1,000 business leaders in Malaysia.
