Polyethylene glycol‐linked multiwalled carbon nanotube‐coated poly‐acrylamide hydrogel (CNT‐PA) was customized to mimic human liver stiffness and nanostructured surface in liver cells for modulating differentiation of human amniotic epithelial cells (hAECs) into functional hepatocyte‐like cells (HLCs) in vitro. This composite of CNT‐PA matrix enhanced the hepatic differentiation of hAECs into HLCs with suppression of pluripotent markers and up‐regulation of hepatic markers at both transcript and protein levels. Furthermore, the HLCs on CNT‐PA demonstrated hepatocytic functions in terms of albumin secretion, higher uptake of indocyanine green, and comparable CYP3A4 enzymatic function and inducibility when matched against HepG2 cells. Taken together, CNT‐PA provides an efficient and scalable platform for the expansion of HLCs from hAECs and could be explored further for downstream development.