KUALA LUMPUR: Almost three quarters of businesses based in Malaysia will accelerate adoption of artificial intelligence (AI) tools with greater public sector adoption, a survey by Amazon Web Services (AWS), the cloud computing arm of Amazon.com Inc, reveals.
AWS country manager Hussein Mohd Ali, who presented the findings in a media briefing, said more public sector AI adoption would be a practical approach in showing the way for the country’s businesses in adopting AI for their operations.
The survey, Unlocking Malaysia’s AI Potential 2026, involved 1,000 nationally representative members of the public and 1,000 business leaders, segmented by business size, sector, and region.
The survey noted that 72% of respondents said government leadership plays an important role in accelerating AI adoption overall as public-sector deployment increases trust, demonstrates safe and responsible deployment, and provides practical examples others can follow.
“Governance and public-sector leadership aren’t separate conversations – they’re what turn that momentum into something durable.” Hussein added.
He said software providers can scale the engine the country needs while sector- focused providers embed AI into tools that businesses use as the fastest way to move an entire economy from experimentation to real capability.
Notably, respondents said the government can play a broader role in the country’s AI future by building confidence in AI, demonstrating responsible implementation and creating practical guidance helping businesses deploy AI more effectively.
They said rather than just establishing regulatory frameworks, many businesses want support that helps translate AI principles into day-to-day business practice.
Respondents viewed practical implementation guidance, shared experience, and collaboration between government and industry as important complements to regulatory certainty.
Among the survey’s findings on the public sector’s role, 46% of respondents said clearer and more consistent regulatory guidance would strengthen AI governance, while 43% identify practical AI governance frameworks or implementation templates as a priority.
Also, 38% said access to external expertise would help them strengthen AI governance and 41% prioritised training and upskilling for employees responsible for AI governance.
Businesses also believe the public sector can accelerate AI adoption by leading through example. As government organisations deploy AI responsibly, it can demonstrate what successful implementation looks like, helping to build trust and reduce uncertainty for businesses considering their own investments.
For many organisations, the value of public sector leadership lies in the confidence it creates. Businesses pointed to greater trust in AI technologies, clearer examples of responsible deployment and increased confidence around governance as some of the ways public sector adoption could encourage wider uptake.
The survey showed Malaysia has made significant progress in expanding AI adoption, as businesses reported to adopt AI has risen to 38% over the past year compared to 27%, representing almost one million new businesses using AI as they increasingly view the technology as a strategic capability rather than an emerging technology.
This year’s survey focuses on the persistent gap between adoption and long-term transformation and asks whether organisations were addressing these challenges through building foundations that bridge these gaps.
