Organisations in Malaysia Face Increasing AI Talent Gap and Workforce Readiness Challenges, Aon Study Finds

KUALA LUMPUR, Aug. 19, 2026`   – Aon plc (NYSE: AON), a leading global professional services firm, today released the Malaysia findings from its inaugural Human Capital Trends Study, highlighting how organisations are navigating the next phase of digital transformation.

As organisations increase adoption of artificial intelligence (AI), the findings indicate significant gaps in AI talent, employee value proposition clarity and workforce readiness. These gaps may limit employers’ ability to convert technology investment into sustainable business outcomes.

According to the study, 59% of organisations in Malaysia have either deployed AI or are actively piloting programmes, indicating the momentum in AI adoption among participants. While adoption remains below Singapore, where 80% of employers have deployed or are piloting AI, and the APAC average of 74%, the findings highlight an opportunity for organisations to further scale adoption while building the workforce capability needed to support it.

Building workforce readiness remains a priority. Only 5% of organisations report confidence in their ability to recruit and retain enough AI-skilled talent, among the lowest levels across surveyed markets. At the same time, 91% believe AI will create new opportunities and require new skills, while 82% expect AI to automate some tasks without eliminating existing roles.

“Malaysian organisations recognise the transformative potential of AI and are continuing to integrate it across their businesses,” said Farhan Hanif, Head of Growth, Human Capital, Malaysia, Aon. “However, technology investment alone is not enough. Employers that invest in skills development, workforce planning and change management alongside AI adoption will be better positioned to turn digital transformation into sustainable business performance and competitive advantage.”

The study found that 41% of organisations in Malaysia report high levels of HR data maturity, creating a foundation for more informed workforce decision making. However, only 10% have a clearly defined and well-understood employee value proposition (EVP), compared with 31% in Singapore and 22% across APAC. Aon’s analysis indicates that greater EVP clarity may support organisations connect workforce insights into stronger employee engagement and retention outcomes.

The findings also highlight an opportunity for greater leadership visibility around employee wellbeing. While 83% of organisations believe their wellbeing strategy is meeting workforce needs, only 14% report strong and visible leadership commitment to employee wellbeing.

A similar disconnect is evident in employee benefits. Seventy-two percent of employees consider customised benefits important or extremely important, yet only 31% of employers currently offer them. While Malaysia is ahead of the regional average of 22%, employee expectations outpace employer provision.

“The findings show that organisations have a strong foundation to build on, particularly through investments in workforce data, wellbeing and benefits,” said Rachel Jayaprakash, Head of Talent Solutions, Malaysia, Aon. “The next opportunity is turning those investments into a more differentiated employee experience that strengthens trust, supports engagement and helps people and businesses succeed together.”

The study also points to gaps in compensation and workforce resilience strategies. Only 14% of organisations rate their pay transparency practices as mature, while 34% have not benchmarked compensation within the last year. As competition for talent intensifies, strengthening these practices may help organisations attract and retain critical skills.

At the same time, 31% of organisations report taking action to improve retirement savings outcomes across their workforce, including efforts to address the gender retirement savings gap. Adaptability and change management were also identified as the most critical workforce skills needed over the next three years.

Together, the findings point to three priorities for organisations in Malaysia:

As organisations navigate rapid technological and workforce change, aligning investment in people with investment in technology will be critical to sustaining growth and strengthening long-term resilience.

Aon’s Human Capital Trends 2026 Study surveyed 2,361 business, HR and people leaders globally, including 504 respondents from APAC across Australia, China, Hong Kong, India, Malaysia, the Philippines and Singapore. More information about the report is available here

About Aon
Aon plc (NYSE:AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.

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