A joint study by the Asian Institute of Chartered Bankers (AICB), research firm Ecosystm, and the AICB’s Chief Risk Officers’ Forum reveals that only 25% of financial institutions in Malaysia make decisions based on artificial intelligence (AI) outputs. While AI is actively deployed for tasks like fraud detection, anti-money laundering, counter-financing of terrorism, and Know Your Customer (KYC) onboarding, broad readiness remains low. Of the nearly 90 banks and development financial institutions surveyed, only 44% are in the developing phase of AI readiness, a mere 17% have achieved established or advanced maturity, and only 26% possess a defined AI strategy. Furthermore, the sector faces a massive talent shortage, with 79% reporting AI skill gaps, only 34% claiming meaningful in-house AI capabilities, and just 33% operating with structured AI governance and model risk management frameworks. This struggle reflects a broader regional trend, as a separate Money 20/20 whitepaper shows that 40% of financial firms across the Asia-Pacific region still lag in AI and machine learning adoption, with 61.2% having adopted the technology, 35.3% still in the exploratory phase, and 3.5% failing to adopt it at all.
Click here for more on Banking
