Generative AI (Gen AI) start-ups are rapidly emerging in Malaysia, ranking fifth in the ASEAN region. The landscape is influenced by geopolitical tensions and new US policies, alongside varying venture capital (VC) investment dynamics. While Malaysia excels in AI infrastructure, concerns about talent retention and market scalability persist. GenAI Fund’s Denning Tan emphasizes that success will depend on start-ups’ ability to create impactful solutions and achieve product-market fit. Collaboration among enterprises and increased funding are critical for growth. Tan anticipates a significant rise in B2B Gen AI adoption and local IPOs in the coming years, despite existing challenges.