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At the Dell Technologies Forum 2024 – AI Edition event yesterday, the organization published a study where they found a positive trend in terms of the Malaysia market viewing, adopting, and operating AI / Gen-AI-related applications.

Dell Technologies Forum 2024 - AI Edition 1

Optimism and Readiness for AI Transformation

The Malaysian business landscape is poised for AI-driven change, with many organizations eager to embrace the transformative power of GenAI. According to the report:

  • 85% of respondents believe AI and GenAI will significantly reshape industries.
  • For organizations experiencing high revenue growth in 2023, this optimism rises to 91%. However, it drops to 75% for those facing low or stagnant growth.

Despite this broad enthusiasm, the extent of preparedness varies. While 82% of Malaysian organizations feel competitively positioned for the AI-driven future, almost half (44%) admit they are unsure about what their industry will look like in the next 3 to 5 years. Furthermore, 45% report struggling to keep up with the pace of technological change.

Moving from Idea to Implementation

GenAI holds enormous potential to revolutionize multiple facets of business operations in Malaysia. The survey shows that:

  • 56% of Malaysian respondents see GenAI as instrumental in improving IT security and enhancing productivity.
  • 59% believe it will play a key role in improving customer experiences.

However, with new technologies come new risks. The report notes that 65% of respondents worry that GenAI may introduce new security and privacy challenges. Additionally, 76% of Malaysian organizations express concern about the safety of their data and intellectual property when using GenAI tools, especially when third parties are involved.

Despite these concerns, the implementation of GenAI is well underway, with 50% of respondents stating they have begun integrating it into their operations. This transition from ideation to implementation brings with it challenges, particularly around understanding risks and ensuring accountability for AI malfunctions. In Malaysia, 76% of respondents believe that the organization—not the machine or the user—should be held responsible for any issues related to AI performance.

Dell Technologies Forum 2024 - AI Edition 2

Cybersecurity Threats and Employee Risks

As organizations adopt new technologies, cybersecurity remains a pressing concern. According to the report:

  • 87% of Malaysian organizations have experienced a security attack in the past 12 months, a figure higher than the regional and global averages.
  • In response, 93% are pursuing a Zero Trust deployment strategy to minimize risks, and 77% have established Incident Response Plans to handle breaches or cyberattacks.

Employee behavior also poses a significant challenge to maintaining security. The report reveals that:

  • 80% of respondents believe employees sometimes bypass IT security protocols for efficiency, exposing the organization to unnecessary risks.
  • Insider threats are a concern for 66% of Malaysian organizations, further underscoring the need for better employee training on cybersecurity practices.

Data Infrastructure and the Role of GenAI

With the rise of AI, modern data infrastructure is becoming increasingly important. Businesses are recognizing the need for scalable and secure systems to handle the growing volumes of data and support AI-driven innovation. In Malaysia:

  • 73% of IT decision-makers prefer an on-premises or hybrid data model to address the challenges of GenAI implementation.
  • However, only 34% of respondents are currently able to turn data into real-time insights that drive innovation.

The report suggests that organizations are already working to address this challenge. Notably, 86% of Malaysian respondents believe that data is the key differentiator, and their GenAI strategy must involve using and protecting that data. Additionally, 49% anticipate that the bulk of their data will come from edge computing in the next five years.

Overcoming Talent Shortages and Sustainability Challenges

Innovation in AI is not just a technological challenge; it is also a human one. A significant number of Malaysian organizations are struggling with a shortage of the right talent needed to drive AI-powered transformation. The report highlights that:

  • 73% of Malaysian respondents report a shortage of skills for innovation.
  • Critical competencies for the next five years include AI fluency, learning agility, and creative thinking.

Sustainability is also becoming an increasingly important factor in AI and IT innovation. As environmental concerns rise, 56% of Malaysian respondents believe driving sustainable innovations should be a priority.

This is reflected in their experimentation with energy-efficient solutions, with 83% exploring as-a-service IT models and 81% moving AI inferencing to the edge to reduce energy consumption in areas such as smart buildings.

Fostering Stronger Collaboration Between IT and Business

One of the key insights from the Dell report is the need for stronger collaboration between IT and business decision-makers. In Malaysia:

  • 80% of business leaders have reasons to exclude IT from strategic conversations.
  • Both IT and business departments rank stronger relationships as the second most important improvement area for success.

The right technological infrastructure, alongside stronger collaboration between departments, is vital to helping organizations overcome challenges and unlock the full potential of AI and GenAI.

Quick Summary

As Malaysian organizations navigate the rapid pace of AI innovation, the journey from ideation to implementation is fraught with both opportunities and challenges.

Businesses are optimistic about AI’s potential to enhance productivity, improve security, and revolutionize customer experiences, but they must also grapple with talent shortages, cybersecurity risks, and sustainability concerns.

A strong focus on building scalable data infrastructures, fostering collaboration between departments, and addressing employee-related security risks will be key to successfully navigating this transformative era.


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