AS artificial intelligence (AI) continues to reshape our lives, Malaysians are embracing its potential with a blend of excitement and caution.

Telenor’s Digital Lives Decoded Malaysia report reveals that three in four Malaysians are already using AI tools in some form, finding them beneficial for skill development and improving user experiences for various tasks.

These technologies are also now common in the workplace, where 37% of respondents report using them.

Conducted by the Britain-based audience research firm GWI, the study surveyed 1,004 Malaysian Internet users aged 16 to 64 between June and July.

‘Privacy paradox’

However, the report highlighted that 57% of respondents are concerned about AI-integrated devices misusing their personal data, and 44% worry about the technology accessing sensitive information without permission.

Additional concerns include extensive data collection without consent (45%), a lack of transparency in data usage (44%), over-reliance on AI for daily tasks (44%), deteriorating critical thinking and problem-solving skills (40%), and the unethical use of AI by governments and companies (46%).

The study also found that Malaysians have high expectations for AI-enabled smart devices, especially regarding security. More than half (51%) of respondents believe AI can boost security with features like threat detection.

These findings highlight what the report calls a “privacy paradox”, where Malaysians express concerns about data privacy yet recognise the advantages AI can provide.

Telenor Asia deputy CEO and head of investment Haakon Bruaset Kjoel says this reflects a growing willingness to embrace AI, despite the associated risks.In fact, the study reveals that 57% of respondents are more excited about AI’s possibilities than anxious about its implications.

“To maximise the benefits of digital technologies, people need to have trust in the digital world. Institutions and individuals have a shared responsibility when it comes to building this trust and equipping people with knowledge and tools to better protect themselves online.

“This study offers a valuable snapshot of the current digital behaviours and attitudes of Malaysians, which can guide policymakers, businesses, and individuals on new growth opportunities and ways to shape a smarter and safer digital future,” he says.

The study found that confidence in the benefits of AI is more prevalent among men, with 52% expressing optimism compared to just 37% of women. The report also shows that men are 40% more likely to follow technology- related news, which may make them more familiar with AI and its potential advantages.

To address this gap, Kjoel says it’s important to highlight how AI can enhance experiences to better meet women’s specific needs.

Smartphone safety

According to the study, Malaysians spend an average of four hours and forty minutes daily on their mobile devices, with top online concerns being financial scams (57%), identity theft (54%), data breaches (45%), and deepfakes (45%).

Driven by these fears, 97% of respondents rely on at least one digital privacy measure: 84% clear their browser history and cache, 58% use an ad-blocker, and 42% utilise a virtual private network (VPN). A VPN is a service that encrypts Internet connections to secure your data and protect your online privacy.

Despite these precautions, most believe that the primary responsibility for online safety lies with the government (66%) and service providers (59%), while only 47% consider it their own responsibility to a lesser extent.

Telenor Asia privacy and compliance director, Kulani Kulasingam, says that “respondents are very clear in telling us that it (responsibility) does not lie in one person, and it is more of a shared responsibility”.

“It takes a village. Governments, service providers, and private and public sectors collectively need to play an important role,” she says.

In terms of government initiatives, Kulani highlights the allocation of RM1.3bil to the Digital Ministry in the National 2025 Budget. This funding is not solely for advancing AI development but also for nurturing local talent.

Within this allocation, RM10mil is designated for setting up the National AI Office (NAIO), and RM50mil is allocated for academic research in AI.

The NAIO, launched on Dec 12, is a centralised agency that will help shape policies and address issues regarding AI regulation as the country seeks to establish itself as a regional player in AI development.

It is also expected to provide strategic planning along with research and development into the technology, targeting the creation of an AI code of ethics, a regulatory framework, and a five-year action plan leading into 2030.

“These are promising efforts by the government aimed at developing and empowering society. I think it is important to equip the general public, and this is where we need to go back to basics: educate and create awareness.

“When it comes to telco responsibility in this space... they are the data custodians, they hold data stewardship, they are the ones actually being entrusted with data by the customers,” she says.

Kjoel (left) and Kulani emphasise that building trust and safeguarding privacy in AI requires a collective effort from governments, companies and individuals. — AZLINA ABDULLAH/The Star

Kulani stresses the importance of guardrails to ensure privacy is preserved before even looking into the adoption and deployment of AI tools.

Nevertheless, mobile devices provide a sense of security for many Malaysians, with 70% feeling safer because they can quickly contact emergency services, 66% relying on GPS and navigation apps to find directions and avoid unsafe areas, and 64% choosing mobile payments over cash.

Notably, 59% of respondents feel safer sharing their location data with friends and family, though this varies by gender: 67% of women report feeling safer compared to 53% of men.

Kjoel says women tend to feel safer knowing they can share their location, while men focus more on device security, valuing secure mobile payments and features that protect personal information.

Common ground

Kjoel says there isn’t a clear-cut answer to what is an “appropriate level of trust in AI” yet, saying that he believes it is something that will be learned over time, especially since it is a relatively new technology for end-users.

“The respondents in this study, most of them, have in some way or another been exposed to AI and are aware of it.

“That is, in a way, a good starting point for developing a concept around trust, because you will not be able to understand the questions you are considering about trust levels until you have started to use it.

“I was an early adopter of ChatGPT because I wanted to personally understand what it’s all about, and through that, I also developed an awareness of what kind of answers I get back.

“I think that is actually an important part of reaching common ground on trust,” he says.