A new research report ‘From Oversight to Advantage: How Boards Can Accelerate AI Adoption in Malaysia’s Financial Institutions’ by FIDE FORUM and Accenture Malaysia reveals that while artificial intelligence (AI) adoption continues to gain momentum across Malaysia’s financial sector, few institutions have successfully translated early adoption into enterprise-wide transformation.
The study also found that while 71% of Malaysian banks have implemented at least one AI application, only 17% of financial institutions surveyed have successfully scaled strategic AI initiatives. Notably, none of the insurers surveyed had successfully scaled a strategic AI initiative, highlighting a significant gap between AI adoption and enterprise-wide value creation.
No financial institutions surveyed had achieved full enterprise integration of AI, where strategy, critical processes and technology capabilities operate as a cohesive enterprise-wide system. Instead, many institutions remain trapped in fragmented pilot initiatives that have yet to deliver measurable business outcomes at scale.
The findings come at a critical juncture as Malaysia accelerates its national AI ambitions through initiatives such as MADANI, the National Artificial Intelligence Roadmap (AI-RMAP), the New Industrial Master Plan 2030 (NIMP 2030), and the establishment of the National AI Office.
According to the report, scaled AI adoption could potentially unlock up to a 16% uplift in pre-tax profit for Malaysian financial institutions, representing an estimated US$1.8 billion (approximately RM7.7 billion*) in additional value creation while some research indicate that AI could contribute approximately US$113 billion (approximately RM480 billion*) to Malaysia’s economy.
Minister of Digital Gobind Singh Deo said, “As AI becomes increasingly embedded across the financial sector, the role of boards must evolve alongside it. The challenge is no longer whether organisations should adopt AI, but how they can do so in ways that strengthen competitiveness, enhance productivity and maintain public trust. Strong leadership, sound governance and continued investment in talent will be critical to ensuring that AI delivers long-term value for institutions, customers and the broader economy.”
“Artificial Intelligence is no longer a future consideration; it is a strategic imperative. While many financial institutions have already embarked on their AI journey, our research shows that the next phase of AI adoption will depend on the ability of Boards to provide strategic direction, effective governance and organisational leadership,” said Datuk Kamaruddin Taib, Chairman of FIDE FORUM.
“The successful scaling of AI requires Boards to move beyond oversight and play a more active role in shaping strategy, governance, talent development and organisational readiness. Those institutions that succeed will be the ones whose Boards provide the leadership necessary to translate AI ambition into sustainable value creation. Ultimately, AI is not fundamentally a technology issue. It is a governance and leadership issue that demands active engagement from the Board.”