Malaysia’s progress toward becoming a global artificial intelligence (AI) leader risks being slowed by fragmented adoption and a lack of workforce readiness, according to a new whitepaper released by Cognizant on Oct 23, 2025.
Titled Unleashing the Power of Malaysia’s Human Capital in the AI Age, the report outlines how despite strong policy and infrastructure foundations, the country faces significant barriers to scaling AI due to limited confidence among executives and persistent skills shortages.
Citing the World Economic Forum’s 2025 findings that 86% of employers expect AI to transform their businesses, Cognizant revealed that only 11% of Malaysia’s C-suite leaders feel “very confident” in their workforce’s AI capabilities. Meanwhile, 66% cited workforce readiness and leadership clarity as the main barriers to adoption, while 63% pointed to the skills gap as the top obstacle to transformation.
Thomas Mathew, Vice President of Cognizant for ASEAN and Greater China, said, “We believe AI should empower people, not replace them. For Malaysia to truly lead, it must move beyond being an AI user to becoming an AI producer and innovator. By championing ‘human in the loop’ governance, transparent data frameworks and robust ethical literacy programmes, Malaysia can set the regional standard proving that technological advancement and human values can thrive side by side.”
The whitepaper recommends developing local AI intellectual property, leading regional collaboration through ASEAN and embedding ethics and trust in every stage of AI adoption. It calls for policies that promote homegrown innovation, regional training hubs and human-centric AI governance to build a sustainable ecosystem.
Datuk Muhammad Azmi Zulkifli, CEO of InvestKL, who co-hosted a roundtable with Cognizant, said, “Malaysia stands poised to become ASEAN’s most trusted AI hub, uniquely multilingual, ethical and driven by innovation. With the right policies and ambition in place, we can accelerate this transformation. AI represents a bold new frontier, but the next leap depends on the people.”
The report concludes that while Malaysia has made commendable progress in its AI journey, future growth must remain people-centred and value-driven to ensure inclusivity, trust and long-term competitiveness in the digital economy.
