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Sarah Gideon speaks to Mah Sing Group's Daniel Ng and UMW Corporation's Zailani Ali to understand how cross-departmental collaboration, education on AI, and more are improving their approach to AI adoption.
Malaysia has embraced generative AI as a transformative pillar in its digital journey, guided by initiatives such as the Malaysia Digital Economy Blueprint and the Malaysia Artificial Intelligence Roadmap 2021-2025. With a strategic focus on becoming a digital-first nation, generative AI is increasingly vital in shaping both the economy and workforce — with AI even emerging as a key focal area of Budget 2025.
While generative AI offers robust growth prospects—from productivity gains to sector-wide innovation—it also introduces complex challenges that Malaysia must address strategically as adoption grows, including:
- Skills gap and workforce readiness
- Balancing AI adoption with workforce morale
- Economic and competitive advantages
- Infrastructure and digital divide
- Business adaptation and innovation
In the first part of this two-part series, we explored two critical areas — bridging the skills gap and preparing the workforce, and balancing AI integration with morale, hearing from CelcomDigi and UMW Corporation's CHROs on the challenges they encounter when implementing AI, and how they are equipping and supporting their workforce to thrive in an AI-driven environment.
In this second and final part, we will shift our paradigm to the business side, where Sarah Gideon explores the economic and strategic challenges of AI adoption in Malaysia, and speaks to Daniel Ng, Head of People at Mah Sing Group, and Zailani Ali, Chief Human Resources Officer, UMW Corporation to highlight how they are overcoming these barriers to drive AI adoption in their workforce.
Economic and competitive advantages
According to an article by Access Partnership on the economic impact of gen AI in Malaysia, there are three main channels through which generative AI will change the processes of production within an economy and transform the types of tasks undertaken and skills needed in the workforce: Unleashing creativity, accelerating discovery, and enhancing efficiency.
Unleashing creativity
Generative AI can greatly enhance creativity by reducing the time and cost of producing new ideas and outputs, supporting various stages of the creative process. It’s essential to establish guidelines that recognise human contributions, ensuring that innovation still involves a human touch. AI’s impact on creative fields such as arts, design, and media is profound, as it can transform tasks and improve content production across formats such as text, images, and video.
Accelerating discovery
AI accelerates scientific research by automating hypothesis development and testing, significantly reducing costs and time. It transforms fields such as science, healthcare, and education by enhancing research capabilities and creating personalised learning experiences. It also supports creativity and efficiency in research, enabling breakthroughs such as new materials and medicines to be developed faster. In education, it offers personalised learning by analysing student patterns, improving engagement and outcomes, and ultimately preparing future scientists and researchers for success.
Enhancing efficiency
AI boosts efficiency in data-intensive industries such as financial services, scientific research, and ICT by enhancing data usability and decision-making. It increases productivity in customer support, with agents experiencing a 14% improvement in issue resolution speed. A Microsoft report shows that 70% of workers are open to using AI to reduce workloads, and less-skilled workers see significant gains, completing tasks 35% faster. In manufacturing, AI shifts maintenance from predictive to prescriptive, enabling early issue detection and better equipment uptime.
In today's rapidly evolving digital landscape, HR leaders Daniel Ng and Zailani Ali are not only taking steps to transform talent management, but are also ensuring that the workforce adapts to new technologies. When asked about the strategic role that HR plays in leveraging gen AI, both Ng and Zailani share a similar sentiment of the importance of cross-departmental collaboration.
Ng, for instance, talks leveraging AI to boost work productivity — and the need to provide real-life examples that showcase this. At Mah Sing, he and his team also ensure that AI-related training programmes are implemented Learning and Growth department, while also collaborating with the IT department to provide the team with basic IT skills necessary for adopting AI tools at work.
The above aside, Ng and his team also make it a point to stay updated on the latest AI tools available from suppliers and vendors in the industry; and work with the IT team to create a dashboard comparing productivity before and after AI adoption.
On Zailani's end, the leader points out that in Malaysia, "HR leaders play a strategic role in leveraging gen AI to enhance the nation's global economic competitiveness.
"This role is not just about adopting new technologies; it is about ensuring that these technologies are integrated in ways that benefit both the workforce and the broader economy."
He adds that HR leaders must collaborate with their stakeholders and other senior leaders to ensure that gen AI initiatives are not only technically sound but also aligned with the broader organisational and national objectives.
By doing so, HR leaders help position their organisations to capitalise on the economic opportunities that GenAI presents, driving innovation, productivity, and competitiveness.
As he affirms, gen AI fosters innovation, and HR plays a strategic role in creating a culture that supports experimentation, creativity, and collaboration across teams.
Navigating potentials risks facing AI adoption
When asked about the potential risks companies may face when adopting gen AI, Ng shares two key risks that stand out:
First, companies risk losing their ability to compete globally as industries evolve at a faster pace. Without AI integration, organisations may struggle to keep up with global competitors who are leveraging AI to innovate and boost efficiency.
Second, a workforce without exposure to AI will have outdated skill sets, resulting in lower demand and poorer career prospects.
This is where HR comes in as a crucial driver of AI learning and development, as a way to address these risks, he notes.
To address these risks, Ng says, is where HR comes in as a crucial driver of AI learning and development.
Sharing his take, Zailani tells us: "As the world rapidly embraces gen AI, Malaysian companies face significant risks if they lag in adopting this transformative technology. While gen AI promises to revolutionise industries and enhance productivity, it also introduces potential challenges that can have far-reaching consequences."
He goes on to explain a few risks that prevail:
Data security risks and mitigation
AI systems, especially in HR, rely on large amounts of data, increasing the risk of mishandling sensitive information. Poorly trained systems can lead to privacy breaches, while AI "hallucinations" (fabricated data) further heighten these risks. Additionally, manual data entry introduces vulnerabilities through human error, creating more opportunities for security issues.
At UMW, AI systems are designed to complement, not replace, human roles, ensuring a balance between technology and personal interaction, while emphasising ethical AI use through regular reviews to prevent biases and inaccuracies, fostering transparency, fairness, and trust within the organisation.
“By empowering our employees with the knowledge to spot potential issues, organisations can flag security breaches more quickly and ensure compliance with data privacy laws.
“Moreover, prioritising employee consent and ensuring that data protection regulations are strictly followed will help build trust and maintain a secure working environment.”
Job disruption and responsible transition
Generative AI can automate routine tasks, putting jobs that rely on repetitive functions at risk. However, it also creates new opportunities in roles requiring problem-solving, creativity, and human interaction, such as talent management and employee engagement.
At UMW, Zailani shares how HR leaders take a proactive approach by identifying roles vulnerable to automation and implementing reskilling and upskilling initiatives to help employees transition into new, more secure positions.
"By providing training and development opportunities, we are able to help our employees transition into new roles that are less susceptible to automation, ensuring that the workforce remains adaptable and resilient in the face of technological change.”
Dehumanisation and maintaining a human-centered approach
The rapid adoption of digital technologies, accelerated by the COVID-19 pandemic, has transformed workplaces but also raises concerns about potential dehumanisation, according to Zailani. Technology, while streamlining processes, risks reducing personal interaction and engagement. As the leader notes, over-reliance on AI for decisions such as hiring and performance evaluations without human involvement could leave employees feeling undervalued and disconnected, compromising the human aspect of work.
Recognising these potential risks, UMW ensures that AI enhances rather than dehumanises the work environment, striking a balance between technology and personal interaction. He explains: "At While our self-service My Insights application allows employees to submit expense claims and manage benefits like annual or medical leave, we emphasise that this technology is designed to complement, not replace, human roles.
"AI effectively handles routine administrative tasks, enabling HR professionals to dedicate more time to meaningful, strategic work that adds value to both the organisation and its employees."
Another key aspect of maintaining a human-centered approach is ensuring that AI systems are used ethically and transparently. "HR leaders must advocate for clear guidelines on how AI is used in decision-making processes and ensure that these systems are regularly reviewed to prevent biases or inaccuracies.
"By promoting transparency and fairness in AI usage, we help build trust and maintain a positive work environment."
Above all, what is also important, as Zailani points out, is that HR leaders must HR leaders must carefully consider AI’s ethical implications, particularly regarding employee privacy, data security, and fairness, to avoid risks such as biased decisions, data breaches, and loss of trust.
Without careful oversight, AI implementation risks unintended consequences, such as biased decision-making, data breaches, and loss of employee trust
Reaping the most out of AI
Keeping all of the above in mind, let's take a look at some ways leaders can address the impact of generative AI on business adaptation and innovation in Malaysia:
Protect innovation incentives
It is essential to revisit broader innovation policy frameworks with a focus on generative AI, aiming to balance intellectual property protection with incentives that foster human creativity and innovation.
Accelerate innovation activity
To drive innovation, a comprehensive assessment of the innovation landscape is necessary to identify existing gaps and opportunities. This will promote research, development, and implementation of generative AI, thereby nurturing an AI-ready culture at both regional and national levels.
Collaborative efforts
Governments, businesses, industry associations, and community groups should work together on open data initiatives and Public-Private Partnership (PPP) models. These collaborations will leverage diverse data sets and knowledge to boost AI-enabled innovation, contributing to a more dynamic and innovative ecosystem.
In short, despite these challenges, Malaysia is well-positioned to address them with strategic planning and investment. By prioritising education and reskilling programmes, businesses can bridge the skills gap and prepare the workforce for AI integration. Maintaining open communication about AI’s role can alleviate concerns and boost morale, and leveraging AI for economic growth while addressing infrastructure disparities can ensure more equitable benefits across the country.
With a focus on innovation and adaptability, employers in Malaysia can successfully navigate these challenges and harness AI’s potential to drive progress and competitiveness.
READ MORE: Gen AI in HR: CelcomDigi and UMW Corporation's approach to bridging skills gaps in AI
Lead image / Human Resources Online
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