KUALA LUMPUR: Artificial intelligence (AI) adoption in Malaysia grew 35 per cent year-on-year, with about 2.4 million businesses already using AI, according to a report by Amazon Web Services (AWS), an Amazon.com company.
In its “Unlocking Malaysia’s AI Potential” report, AWS said the adoption rate increased to 27 per cent this year from 20 per cent in 2024, equivalent to around 630,000 businesses adopting AI this year, or more than one every minute.
While AI adoption continues to expand rapidly, 73 per cent of them remain focused on basic applications.
“Only 31 per cent of startups and 15 per cent of large enterprises are developing entirely new AI-driven products,” it said.
The report noted that combining the agility and innovation of startups with the scale and resources of large enterprises could unlock Malaysia’s AI-driven economic potential.
AWS said the productivity and economic impact of AI are promising, with 65 per cent of Malaysian businesses reporting higher revenue, averaging a 19 per cent increase, while 72 per cent cited significant productivity gains.
“Additionally, 67 per cent of respondents expect cost savings averaging 15 per cent,” it said.
The report, conducted in collaboration with Strand Partners, surveyed 1,000 business leaders and 1,000 members of the public across Malaysia to assess the scope and outlook of AI adoption.
AWS Malaysia country manager Hussein Mohd Ali said Malaysia’s AI ecosystem is developing a natural specialisation that creates a powerful innovation cycle.
“Startups build new AI products and business models, enterprises prove these solutions can scale and the public sector acts as a ‘trust multiplier’ that encourages wider adoption.
“This feedback loop creates market demand that fuels further innovation. For this cycle to reach its full potential, we must address the skills gap; only then can we accelerate the entire country’s digital economy,” he said during a media briefing yesterday.
On the issue of the skills gap, Hussein noted that greater emphasis on skills development is crucial, as much more can be done to address existing limitations.
He said the report showed that 52 per cent of businesses identified the lack of skills as a key barrier both within and outside their organisations.
“Currently, 65 per cent of businesses have reported revenue gains, averaging up to 19 per cent from AI adoption. That’s why enhancing skills is so important,” he added.
Looking forward, Hussein said AWS remains committed to working with customers across all segments to provide global infrastructure and to enable mass digital scaling to enhance AI adoption. – BERNAMA
