Mid-Market Organisations in Malaysia and Asia Pacific Confident in AI Despite Challenges

A new report by Avanade reveals that mid-market organisations across Asia Pacific are embracing artificial intelligence (AI) with confidence, with many expecting up to fourfold returns within 12 months. However, significant challenges in workforce readiness, data governance, and technology infrastructure remain obstacles to achieving sustainable returns.

The Avanade Trendlines: AI Value Report 2025, based on insights from 4,100 global business and IT decision-makers, shows that enthusiasm for AI remains strong, with 87% of respondents planning to increase their budgets for generative AI projects by up to 50%.

“Competitive pressures are driving urgency, with 85% of leaders concerned about losing their competitive edge without rapid AI adoption. Despite this momentum, nearly half of organisations are still stuck at either the business case or proof-of-concept stage,” said Avanade in a statement.

Critical issues highlighted in the report include the need to modernise legacy systems, cited by 95% of respondents as a priority, and challenges in data quality and governance, identified by 76% as inhibiting AI progress.

Security is another key focus, with 94% of leaders prioritising sensitive data protection. Organisations are allocating budgets towards data and analytics platforms, automation, and security measures to scale their AI capabilities effectively.

To address these challenges, Avanade has launched seven new AI services tailored for mid-market organisations. These services include solutions for revenue generation, cloud migration, AI application development, enterprise resource planning (ERP) modernisation and unified threat protection.

“The offerings leverage Microsoft’s AI-powered platforms and Avanade’s expertise to help organisations unlock new growth opportunities while addressing technical and operational challenges,” said Avanade president (Asia Pacific) Bhavya Kapoor (pic).

“Asia Pacific, including Malaysia, is a dynamic economic region with tremendous potential for high growth. With the right partnership and strategic guidance, mid-market companies can leverage AI to unleash their potential and emerge as the next generation of market leaders and industry titans.”

In Malaysia, Avanade has been instrumental in promoting AI adoption, marked by the launch of Southeast Asia’s first generative AI lab in Kuala Lumpur last year and the establishment of its Digital Innovation Studio at the Tun Razak Exchange.