KUCHING: Malaysian organisations risk falling behind in the AI race if they invest in technology faster than they prepare their workforce, according to ICAEW Malaysia.
The institute said companies that prioritise artificial intelligence adoption without building the capabilities to govern and use it effectively could struggle to generate sustainable long-term value.
Wizpresso founder Calvin Cheng cited research by the Hong Kong Chartered Governance Institute covering more than 2,500 listed companies.
“About 88 per cent of companies mentioned AI in their annual reports and corporate strategies, but fewer than one in four discussed AI governance or risk management,” he said.
The study also found a widening gap among smaller organisations, many of which were promoting ambitious AI plans without developing the skills needed to translate them into meaningful business outcomes.
Cheng said technology investment must go hand in hand with workforce development, noting that simply giving employees AI tools does not guarantee they will use them effectively. “AI literacy is only the first step.
The bigger challenge is equipping people with the knowledge and training to use these tools efficiently and responsibly,” he said.
ICAEW Council member and Securities Commission Malaysia chairman Datuk Mohd Faiz Azmi said AI should not be treated as another technology upgrade because it fundamentally changes how organisations make decisions.
Unlike traditional systems with predictable, rules-based outcomes, AI introduces uncertainty that increases the importance of human judgement, oversight and governance, he said.
“As AI automates routine analytical work, organisations will rely more on professionals who can think critically, ask better questions, challenge AI-generated outputs and exercise sound judgement.”
He added that responsible governance would become increasingly important as AI systems could inherit bias or overlook important context.
“Organisations must establish clear oversight, accountability and ethical decision-making as AI adoption expands.”
Prudential Assurance Malaysia chairman Datuk Seri Hamzah Kassim said many AI initiatives stalled not because of technology, but because leadership was unprepared to drive broader organisational change.
He cited limited risk appetite, talent shortages, difficulty demonstrating returns on investment and the scale of transformation required as common obstacles.
“AI is not a project. It is a business and operating model transformation,” he said.
Hamzah added that implementation often faltered when boards and management failed to work together.
“AI failures are rarely technical. They are governance failures.
Organisations are applying old approaches to new technology by treating AI as a system to be implemented rather than a capability to be developed.”
ICAEW Malaysia said AI was also reshaping the qualities employers value, with analytical and technical skills now needing to be complemented by critical thinking, curiosity, sound judgement and the ability to question machine-generated conclusions.
The institute said chartered accountants would play a growing role in helping organisations strengthen governance, manage risks and ensure AI innovation was matched by accountability.
It added that as AI tools become increasingly accessible, competitive advantage will depend less on technology itself and more on how effectively organisations combine AI with human judgement.
“The future of work will not be defined by a race between humans and machines, but by how well they work together.
Organisations that invest as much in developing human judgement as they do in deploying AI will be better positioned to create long-term value.”
