This research investigates how Artificial Intelligence (AI) can enhance Knowledge Management (KM) in Malaysian organizations. It highlights AI's potential to automate tasks, analyze large datasets, and offer personalized knowledge, which is crucial as Malaysia transitions to a knowledge-based economy. The study addresses the complexity of assessing AI's varied effects across Malaysian enterprises and the challenges of integrating AI with existing KM practices and organizational cultures. The research is based on the Technology Acceptance Model (TAM) to explain AI adoption in KM. The main goal is to identify the factors influencing AI adoption in KM and determine the most critical factor among them. The study examines competitive pressure, external support, top management commitment, organizational readiness, and employee adaptability as factors influencing AI adoption. The study uses online questionnaires completed by at least 50 working adults to measure these factors. Employee adaptability is found to significantly influence AI adoption, while other factors show no significant relationship. Traditional KM systems in Malaysia struggle with scalability and real-time insights. AI can potentially address these issues by improving collaboration, information utilization, decision-making, and innovation. The research aims to bridge gaps in understanding how AI can be effectively integrated into KM practices within Malaysian organizations, taking into account the country’s unique economic and technological context.