Malaysian organisations risk wasting their artificial intelligence (AI) investments by deploying technology faster than they prepare their boards, employees and governance systems to manage it, industry leaders have warned.
At a leadership forum hosted by ICAEW Malaysia and FIDE FORUM, experts said many businesses remained focused on acquiring AI tools while overlooking the judgement, skills and oversight needed to generate sustainable returns.
More than three-quarters of the bankers and chartered accountants attending the forum were already using AI in their professional or personal routines, according to moderator and ASLI chief executive officer Danial Rahman.
However, research cited by Wizpresso founder Calvin Cheng showed a wide governance gap. An analysis of more than 2,500 listed companies found that 88% mentioned AI in their annual reports and strategies, but fewer than 25% discussed AI governance and risk management.
“Giving people the right tools is not enough,” Cheng said, adding that AI literacy and proper training were necessary for employees to use the technology effectively.
AI Failures Are Often Leadership Failures
Prudential Assurance Malaysia chairman Datuk Seri Hamzah Kassim said many AI initiatives remained stuck at the experimental stage because of talent shortages, limited risk appetite, difficulties proving returns and the scale of organisational change required.
“AI is not a project, it is a business and operating model transformation,” he said.
Hamzah added that AI failures were rarely caused by the technology itself. Projects often stalled when boards and management failed to work together or treated AI as another system to install rather than a long-term organisational capability.
This leaves companies vulnerable to biased outputs, flawed decisions and weak accountability, particularly when employees lack the confidence or expertise to challenge AI-generated information.
Human Judgement Becomes More Valuable
ICAEW council member and Securities Commission Malaysia chairman Datuk Mohd Faiz Azmi said AI should be viewed as a transformative force requiring businesses to rethink leadership, talent and governance.
Unlike conventional technology built around predictable rules, AI introduces uncertainty, making human oversight more important.
As routine analytical work becomes automated, organisations will increasingly need professionals who can think critically, interpret context, question assumptions and apply ethical judgement.
Chartered accountants are expected to play a bigger role in this transition by advising businesses on governance, risk management and workforce readiness while ensuring innovation is matched by accountability.
The forum’s message was clear: As AI tools become more accessible, technology alone will offer less competitive differentiation.
The organisations most likely to create lasting value will be those that invest as seriously in leadership, governance and human capability as they do in AI itself.
