SHAH ALAM - By now, industry players in Malaysia are familiar with Artificial Intelligence (AI) but a professional group and employers say the focus remains narrow, with AI at its infancy stage across various industries.
Former Universiti Utara Malaysia (UUM) vice-chancellor Datuk Seri Dr Mohamed Mustafa Ishak said most people in the country understand AI, but the focus is predominantly narrowed to ChatGPT, with little discussion about its execution in various industries, including in the management roles.
"For instance, in the management industry, we grapple with AI in managing people and deliverables.
"Even multinational companies are not using one specific AI model to facilitate their work.
"There is a clear lack of exposure and point of reference when it comes to AI implementation in the management industry," he told Sinar Daily when contacted.
In Cisco’s inaugural AI Readiness Index released at the end of last year, only 13 per cent of organisations in Malaysia were fully prepared to deploy and leverage AI-powered technologies.
Thirty-three per cent of companies were categorised as chasers (partially prepared), 53 per cent as followers and one per cent as laggards (not prepared).
When asked about the country's preparedness to adopt AI technology, Mustafa who is Chartered Management Institute (CMI) chairman argued that the focus should be on whether the country has credible people to conduct efficient AI training programmes.
"In my opinion, there's always acceptance and resistance when it comes to AI in any industry, including the management industry.
"But the problem here is whether Malaysia has enough manpower to handle AI and transfer the knowledge to the industry players. Everyone is talking about AI, including our own Prime Minister (Datuk Seri Anwar Ibrahim), but are the training providers ready?" he added.
Despite having AI in the management industry, Mustafa believed that AI is unlikely to replace the role of jobs.
"AI may take over certain jobs, but machines cannot do everything.
"Can they manage people or people's emotions? Basically, it compensates for your mistakes and makes you better.
"The technology itself is not meant to replace portfolio managers. When you need human intuition, humans are still perfect," he said.
Practically, Mustafa said the AI feature could help improve investment returns.
"The better the data quality, the better the performance. At this stage, we need humans who are experts in data learning to input data and AI will help make better decisions," he said.
Recently, the United Kingdom-based professional institution for managers, CMI called for clear regulatory frameworks to guide the adoption of AI in Malaysia.
CMI chief executive officer Ann Francke said as AI technology becomes increasingly integrated into business operations, it is crucial to address the fear and resistance associated with AI by ensuring transparent and proactive regulations.
She also stressed the importance of early government intervention to avoid the pitfalls of previous technological advancements.
Francke highlighted the necessity of using AI to enhance productivity while still relying on human judgment, which remained as crucial as the technology itself.
CMI in Malaysia also recently announced that UK High Commissioner to Malaysia Ailsa Terry has accepted an invitation to serve as Patron for CMI Malaysia’s Regional Board.
Companies lack skilled personnel in AI
Meanwhile, Malaysian Employers Federation (MEF) President Datuk Syed Hussain Syed Husman said despite AI's pervasive presence in our daily lives, there is still a significant misunderstanding or underestimation of its diverse capabilities and applications.
He also pointed out that AI usage is still in its infancy stage in Malaysia.
"Implementation of AI in the management industry also means leveraging data to make decisions.
"With the surge in data collection, companies will have to think about the complex regulatory compliance process as non-compliance may lead to financial penalties and risk of reputational damage," he said.
Syed Hussain noted that while many people talked about AI, its potential to assist and transform various sectors remained underexplored.
"This scenario arises from several key factors. Firstly, the financial implications of AI implementation can be prohibitive. The initial investment required for AI technologies, encompassing advanced hardware and sophisticated software, is often substantial.
"Many companies may not have the financial capacity to absorb these high costs, especially when the return on investment (ROI) is uncertain.
"Secondly, there is a notable scarcity of skilled personnel in the field of AI. Implementing AI solutions demands specialised knowledge in technology, which many companies lack.
"This skills gap makes it challenging to develop and maintain AI systems, leading to further hesitancy in adoption," he told Sinar Daily.
Syed Hussain also pointed out that AI is still a sufficiently new field and many countries (except the United States and China with their large economies and many tech giants) faced similar issues in developing native AI expertise.
Instead, he saw this as an opportunity for Malaysia to gain a leg up in the competition.
"By investing in AI education and training programmes now, we can position ourselves in the race for AI innovation and application," he said.
He urged local companies to begin the journey by assessing their current management processes to identify areas that are time-consuming or prone to errors.
"Provide employees with training on AI basics and evaluate the quality, quantity and accessibility of the companies’ data to ensure AI systems can function effectively.
"Also, develop a clear policy on the usage of AI and data privacy to ensure responsible implementation of AI. And let us not forget that not all economic activities are bound to be AI-controlled at this stage in our human history," he added.