Malaysian internet users are embracing artificial intelligence (AI) as a powerful tool for productivity, learning, and daily convenience, but they are doing so with discernment, according to Telenor Asia Digital Lives Decoded 2025: Building Trust in Malaysia’s AI future report released today.

In its fourth year, the study surveyed 1,000 Malaysian internet users to understand how AI is reshaping digital lives. The findings reveal a digitally discerning society, one that is optimistic about AI’s potential but deeply aware of its risks, ethics, fairness, and control.

“As AI becomes embedded into how people work, learn, and connect across Malaysia, this comes with a clear demand for ethical safeguards and shared responsibility. Malaysian internet users are calling for greater transparency, fairness, and control. This signals a maturing digital society that values both innovation and responsibility. To support this, the systems enabling AI must be built on secure, scalable and resilient infrastructure. Trust and security are the bedrock of any digital society, and it is heartening to see Malaysian users placing emphasis on responsible development and use of AI,” says Manisha Dogra, SVP and Head of External Relations and Sustainability at Telenor Asia.

“Malaysian internet users expect transparent, inclusive and human-centric AI systems as a baseline, not a luxury. For companies, these findings highlight that responsible AI is no longer an optional brand value but a core competitive differentiator. Businesses must prioritise responsible data practices, invest in employee upskilling, and foster environments where ethical safeguards are integral to AI-powered innovation,” added Dr Ieva Martinkenaite, SVP and Head of AI at Telenor Group.

1. AI is a productivity partner and personal assistant for Malaysians

Signalling a significant behavioural shift, 89% of Malaysian internet users say they use AI today, up from 75% in 2024. Notably, the number of internet users who use AI for financial purposes or health and fitness has more than doubled. Today, a quarter of Malaysian internet users surveyed intentionally use AI tools multiple times a day. 

They are also actively leveraging AI to enhance their skillsets. The top competencies AI has helped improve include problem-solving (56%), data analysis (48%), research (47%) and creativity (45%). Looking ahead, Malaysians hope AI will further support efficiency, accuracy, and critical thinking. A majority (6 in 10) believe that upskilling in AI skills is a personal responsibility, reflecting a shift toward self-reliance in navigating the AI landscape.

2. AI at work: An untapped opportunity

Over half (51%) of Malaysian internet users now use AI at work, up from 37% in 2024. Top applications of AI in the workplace include using it for analytics (59%), content development (52%), and customer service (45%).

For those who are already using AI at work, they are 17% more likely to believe that AI will have a very positive impact on their job security and 13% more likely to believe the same for the country’s economy, signalling that AI adoption helps to shape people’s confidence.

However, only 1 in 3 of those who use AI at work say their company has an AI strategy in place. Also, while a majority believe they are personally responsible for keeping up with AI, 4 in 10 expect support from employers, schools, and government to help them acquire the skills needed. This signals an opportunity for clearer organisational direction and training to fully harness the benefits of AI. Companies have a role to play and can support sustainable and responsible adoption of AI through clear planning and articulating these plans to employees.

3. Generational differences apply: Gen Zs are AI’s Power Users and Ethical Guardians

Generational differences shape how AI is used and perceived. Gen Z are both the most enthusiastic AI users and the most concerned about its ethical implications. Nearly 9 in 10 Gen Z internet users engage with AI tools, with many turning to AI to create content, for schoolwork and even emotional support like relationship advice. They are also more likely to report improvements in leadership, empathy, and confidence through the use of AI. 

Yet, this same group is the most critical—69% are highly aware of AI’s risks and biases. While 71% say they are comfortable with how AI works, they are also most likely to question the application of AI in sensitive areas like hiring, facial recognition or drafting contracts. Over a third (35%) of them recognise that ethics and bias awareness are essential skills for the future.

4. Awareness of online safety and AI risks is driving a more informed digital culture

Malaysian internet users remain optimistic about the impact that AI can have on society, especially on the education front. Trust in AI-generated content has also grown across the board, especially in education (+15%), financial advice (+25%), and health (+19%). 

However, this optimism is balanced by a strong awareness of risk. 6 in 10 Malaysians cite privacy as a key concern in the use of AI, and 1 in 2 Malaysian internet users say they are highly aware of the potential risks or biases that can come from using AI.

Across the board, Malaysian internet users also exhibit a more cautious approach when it comes to sharing personal information online. Only 47% are willing to share personal data for better services. Transparency and control are key: 42% say they would share data only if clearly informed how it will be used.

5. A call for shared responsibility and human oversight

Across the board, Malaysian internet users demand high ethical standards, strongly advocating for human oversight and transparency, especially in sensitive applications such as hiring. Fewer than half (46%) find it unfair if a company used AI in decision-making without human oversight.

When it comes to governance of AI use, Malaysian internet users believe that it should be a shared responsibility between individuals (52%), tech companies (52%), and government (49%). This marks a shift from 2024, when trust leaned more heavily on institutions such as government and service providers to ensure online safety.

Manisha Dogra concludes, “A dual approach of personal responsibility paired with institutional accountability highlights the importance of equipping all users, especially younger generations and vulnerable groups, with the skills and knowledge to critically engage with AI. Our commitment remains clear: to support a digital future that is not only smarter, but also safer and more secure for all.”

For more information or to access the full Digital Lives Decoded 2025: Building Trust in Malaysia’s AI Future report, please visit: www.telenorasia.com/digitallivesdecoded

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About Telenor Asia

Telenor Asia enables progress in the region with connectivity and digital services for ~200 million customers. For over 25 years, our telecommunications companies have accelerated mobile adoption in Asia. Our diverse teams are dedicated to broadening access to life-changing innovations and advancing national digital agendas with a firm commitment to responsible business. As Asia changes rapidly, Telenor Asia continues to capture new growth and realise our unwavering ambition of value creation. Telenor Asia is headquartered in Singapore and part of Telenor Group, which is listed on the Oslo Stock Exchange under the ticker TEL. For more information, see www.telenorasia.com