Xero: Malaysian MSMEs Embrace AI but Still Lack Confidence

A new whitepaper from Xero, based on a survey of 1,033 Malaysian MSMEs, finds that 81% have already implemented AI, and around three quarters believe it will benefit their business and become a standard part of operations by 2030.

However, a clear confidence gap remains. While businesses see practical gains in efficiency, cost savings and employee productivity, 82% say they need more education to use AI confidently and effectively, and only 56% are familiar with its different business use cases.

Xero on MSMEs and AI

Concerns about data privacy, security and ethical risks such as plagiarism are also shaping expectations, with 68% saying the government should strongly regulate AI in businesses.

The findings signal a shift in what MSMEs want from policymakers and partners. Rather than prioritising financial aid, they now place greater emphasis on training, education, and advisory support to help them move from experimental to strategic and secure AI use.

Business News