KUALA LUMPUR, November 21 – Despite growing investments in artificial intelligence, Malaysia’s AI readiness has barely increased, with only 14% of organizations fully prepared to harness AI’s potential, according to Cisco’s 2024 AI Readiness Index. This reflects a modest improvement from last year’s 13% and highlights the gap between AI adoption efforts and tangible progress. The survey found that while 55% of Malaysian companies allocate 10-30% of their IT budgets to AI, results often fall short of expectations, particularly in strategic areas like cybersecurity, IT infrastructure, and data management.
This stalled progress is compounded by critical infrastructure and skills gaps. Only 29% of organizations have the necessary GPUs and end-to-end encryption needed to fully support AI initiatives. Additionally, a shortage of skilled talent presents a significant barrier across data, governance, and infrastructure. The urgency for action is intense, with 57% of companies indicating they have a year or less to achieve meaningful AI integration or risk negative impacts, driven by pressure from top executives and the board.
