Rebecca PY A new TrendAI study reveals that Malaysian organizations are accelerating AI deployment despite significant security and compliance concerns. The findings highlight growing governance gaps and rising risks as businesses struggle to balance innovation with control.
MALAYSIA, 24 APRIL 2026 – Global AI security firm TrendAI has released new research indicating that organizations, particularly in Malaysia, are rapidly adopting artificial intelligence technologies despite mounting security and regulatory concerns.
The study found that 75% of IT decision makers and 70% of business leaders in Malaysia have felt pressured to approve AI initiatives even when security risks were present. Notably, one in seven respondents described these concerns as “extreme” but still proceeded with deployment to remain competitive.
The findings point to a widening gap between AI adoption and governance maturity. While 63% of IT leaders expressed confidence in understanding legal frameworks surrounding AI, only 29% of business decision makers shared the same level of confidence. Although 52% of organizations have implemented comprehensive AI policies, a further 39% are still in the process of developing them.
A lack of expertise remains a key barrier. More than half (51%) of IT leaders cited limited security or data knowledge as the main challenge to safe AI adoption, followed closely by insufficient regulatory clarity at 49%. This has contributed to inconsistent governance practices and increased reliance on reactive security measures.
According to Goh Chee Hoh, Managing Director for Malaysia at TrendAI, organizations are deploying AI faster than they can manage associated risks, creating a disconnect between innovation goals and oversight capabilities. He noted that stronger governance frameworks and improved visibility into how AI interacts with data are essential to ensuring sustainable adoption.
The research also highlights growing concerns around autonomous or agentic AI systems. Only 44% of Malaysian business leaders believe such technologies will significantly enhance cybersecurity in the near term. Key risks identified include AI agents accessing sensitive data (57%), malicious prompts compromising systems (45%), and misuse of trusted AI privileges (37%).
Compounding these risks, 36% of organizations admitted they lack sufficient visibility or auditability over AI systems, raising concerns about their ability to monitor or control these technologies once deployed. Nearly half (48%) of respondents support the introduction of AI “kill switch” mechanisms, though uncertainty remains among the majority.
The report further warns that threat actors are increasingly leveraging AI to automate cyberattacks, including reconnaissance and phishing campaigns, lowering the barrier to entry for cybercrime and amplifying both scale and speed of attacks.
Rachel Jin, Chief Platform & Business Officer at TrendAI, emphasized that the issue is not a lack of awareness but rather insufficient conditions to manage AI risks effectively. She noted that competitive pressure is driving deployment decisions ahead of governance readiness, embedding AI into critical systems without adequate safeguards.
The research underscores the urgent need for organizations to strengthen governance, enhance visibility, and implement proactive security strategies as they integrate AI into their operations. As Malaysia advances its ambitions to become an AI-driven economy, balancing innovation with risk management will be critical to long-term resilience.