Dell just released its Modern Enterprise Readiness Study 2026 for Malaysia, and the numbers suggest local businesses are genuinely moving fast on AI adoption. Part of a global study surveying 2,950 decision-makers across 35 countries, the research found the share of Malaysian organisations still in the early-to-mid stages of their AI journey nearly halved in just one year, dropping from 54% to 26%, while 22% now report well-established AI and GenAI solutions actually running in production.
That momentum is real, but it’s also creating some clear pressure points. 68% of Malaysian organisations now say infrastructure modernisation is a critical next step, up sharply from 48% just a year ago, and 58% want a clearer roadmap connecting AI, data, and security together rather than treating them as separate projects
A few Malaysia-specific numbers really stand out here too: 82% say their data and intellectual property need the highest level of protection, 90% say they’ll only scale AI if there’s a credible energy strategy behind it, and a striking 98% say they’re ready for technology partners who can actually deliver more than what they’re currently getting.
Uncertainty about the future also played a big part in this topic, as 68% of organisations admit they’re not sure what their industry will even look like in three to five years, and 66% say macroeconomic pressure is pushing them to be more selective and outcome-focused with tech spending.
Even so, AI capabilities top the list of transformation priorities at 66%, followed by cybersecurity and cyber resilience at 60%, workforce skills at 58%, workplace modernisation at 56%, and data centre modernisation at 54%. Notably, 92% agree that treating AI, workplace, and infrastructure modernisation as separate initiatives just creates operational inefficiency, a strong signal that businesses want a more joined-up approach.
On where the money’s actually going, Malaysian organisations are directing AI investment toward IT automation and infrastructure operations (60%), employee productivity (56%), product and service innovation (54%), and data analytics (52%). Getting these efforts to actually scale means investing in internal skills (54%) and data governance (54%), while security and compliance concerns (50%) are shaping a lot of these decisions too, with 82% specifically focused on regulatory compliance around AI data use.
Data protection is clearly a major sticking point locally. 82% of respondents say their data and IP are too valuable to risk exposing through generative AI environments where third parties might gain access, the highest figure of any market in the entire study. When picking infrastructure platforms, 96% say integrated cyber recovery and data protection are must-have criteria, and 94% consider energy efficiency essential.
Workplace tech matters more than you might expect here too. 92% say modern devices genuinely improve collaboration and meeting quality, and 86% believe outdated hardware is actively holding back their ability to adopt AI-enabled applications. Every single respondent agreed that AI PCs and modern devices will play a key role in future business strategy, with AI functionality (64%) and security (60%) being the biggest factors in future PC purchasing decisions.
Sumash Singh, Dell’s Managing Director for South Asia and Emerging Markets, summed it up by noting that Malaysia’s AI momentum is among the strongest Dell tracks globally, and that organisations connecting data, infrastructure, security, and partner capability into one coherent strategy are the ones that’ll actually turn AI investment into measurable business results.
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