Mid-market organisations in Malaysia and Asia Pacific are optimistic about artificial intelligence (AI), with many projecting returns of up to four times their investment within a year, according to a new report by Avanade.

However, the study highlights significant barriers, including gaps in workforce readiness, data governance, and technology infrastructure.

The Avanade Trendlines: AI Value Report 2025, which surveyed 4,100 global business and IT decision-makers, found that enthusiasm for AI is high, with 87% planning to increase their budgets for generative AI projects by up to 50%. Yet, nearly half of organisations remain stalled at the business case or proof-of-concept stage, underscoring the need for foundational work to realise AI’s full potential.

Key challenges identified include modernising outdated systems, improving data quality, and addressing security concerns. While 95% of leaders are fast-tracking plans to upgrade legacy systems, 76% report that poor data governance is slowing progress. Additionally, 94% cite sensitive data protection as a critical priority, with companies increasing investments in governance and infrastructure to support their AI ambitions.

In response to these challenges, Avanade has introduced seven AI services designed to help mid-market organisations adopt and scale AI effectively as reported by Malaysian Business previously.

These include tools for cloud migration, ERP modernisation, data platform unification, and enhanced threat protection, leveraging Microsoft’s AI-powered platforms to deliver tailored solutions for mid-market needs.

Bhavya Kapoor, Avanade’s President for Asia Pacific (picture above), said: “Mid-market companies in Asia Pacific are at a transformative moment. With the right guidance, they can harness AI to drive growth, unlock new opportunities, and establish themselves as tomorrow’s industry leaders.”

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