While Artificial Intelligence (AI) adoption continues to gain momentum across Malaysia’s financial sector, a new research report by FIDE FORUM and Accenture Malaysia reveals that few institutions have successfully translated early adoption into enterprise-wide transformation.
The study 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.
The findings are contained in a landmark report titled From Oversight to Advantage: How Boards Can Accelerate AI Adoption in Malaysia’s Financial Institutions, commissioned by FIDE FORUM and developed in collaboration with Accenture Malaysia.
The report further found that none of the participating financial institutions 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 research suggests that the challenge facing financial institutions today is no longer whether to adopt AI, but how to scale it effectively across the enterprise.
Talent shortages, legacy technology infrastructure, governance gaps and limited board-level AI literacy were identified among the key barriers preventing organisations from moving beyond experimentation towards enterprise-wide adoption.
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.
The report also cites research indicating that AI could contribute approximately US$113 billion (approximately RM480 billion*) to Malaysia’s economy, equivalent to almost one-quarter of the national GDP.
Minister of Digital Gobind Singh Deo, who launched the event, 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.”
Meanwhile, Chairman of FIDE FORUM, Datuk Kamaruddin Taib said “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.
“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.”
On the same note, Lokesh Sharma, Data & AI Lead, Accenture Malaysia, said “AI is no longer limited to experimentation.
To realise its full potential, financial institutions must scale strategic bets across core processes, strengthened by capabilities in data, platforms and Responsible AI governance.
“Yet in Malaysia, while institutions are actively deploying AI, none have achieved full enterprise integration, where strategy, core processes and technology capabilities operate as a coherent system.
The challenge now is turning early adoption into enterprise-wide value, which requires strategic choices on investment, capability building and accountability.
That is why boards matter. Their authority uniquely positions them to shape the strategic, financial and governance choices required to scale AI across the enterprise.”
The report identifies four board-level priorities to help financial institutions accelerate AI transformation:
- Scale strategic AI investments with measurable business outcomes;
- Reinvent talent and workforce capabilities for an AI-enabled future;
- Build an AI-ready digital infrastructure to support enterprise-wide adoption; and
- Institutionalise Responsible AI governance to strengthen trust, accountability and long-term resilience.
The event was hosted by FIDE FORUM in collaboration with Accenture Malaysia and attended by board directors, regulators, policymakers, financial institutions and technology leaders.
This study is among the first board-focused research initiatives examining AI adoption and governance within Malaysia’s financial services industry.
It aims to support directors and senior leaders in navigating AI transformation responsibly while strengthening the competitiveness, resilience and long-term sustainability of Malaysia’s financial sector.
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