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This article is the third of a three-part series. You can read Part 1 and Part 2 here.
As Malaysia nears a digital revolution, AI and automation are poised to redefine its industrial landscape, transforming business operations and global competitiveness. This shift represents a fundamental change, impacting how industries like finance, healthcare, and governance function and innovate. To fully harness these technologies, organisations must focus on process optimisation, decision-making, and personalised customer experiences, requiring collaboration from all stakeholders.
Emphasising sustainable development, the government supports this shift through initiatives like the National AI Framework. Workforce upskilling, ethical considerations, and strong regulations are key to responsible adoption.
Successfully integrating AI and automation will boost efficiency, scalability, and innovation, though challenges like employee training and seamless integration remain crucial to address.
At the OpenGov Event on 11 September 2024 at Sofitel Kuala Lumpur Damansara, senior digital executives discussed integrating AI and automation, highlighting the National AI Framework’s role and the need for public-private partnerships to advance these technologies.
Sessions at the event highlighted the need to upskill the workforce to keep pace with the evolving digital landscape. Speakers emphasised that while AI and automation can boost productivity, their effective deployment depends on properly training employees.
As Malaysia progresses towards becoming a digital-first nation, the event’s insights will shape its AI and automation strategy, bringing it closer to its digital transformation goals and future resilience.
IBM leverages its AI, automation, and secure cloud expertise to support Malaysia’s digital transformation, empowering businesses and government agencies. Through global innovations and local partnerships, IBM aims to accelerate AI initiatives, improve efficiency, and bolster digital resilience, aligning with Malaysia’s goal of becoming a regional leader in digital development and driving sustainable growth.
IBM’s Subject Matter Experts, Marius Merkel and Brent Butchard delivered profound insights on AI and automation. Through engaging keynotes and interactive demonstrations, they highlighted IBM’s cutting-edge solutions designed to meet Malaysia’s advancing digital needs.
Scaling Your Business with AI and Hybrid Cloud
Technology Insight I
The impact of artificial intelligence (AI) on the global economy is profound and growing acknowledges Marius Merkel, Market Leader of Data/AI and Automation Software, ASEAN at IBM. The potential economic boost from AI is substantial, with projections estimating it could add as much as US$4.4 trillion to the global economy by 2030.
“This figure underscores the tremendous potential AI holds for driving economic growth,” he remarks. “The challenge now is leveraging this potential effectively.”
In the ASEAN region, the discussion on AI is rapidly gaining traction. Both businesses and governments are concentrating on leveraging AI’s potential to drive innovation and enhance efficiency. IBM’s recent study on the region underscores several key areas of focus.
“One critical area we are examining is talent development,” explains Marius. “It is not just about recognising the importance of talent but understanding how we can foster the next generation’s skills in AI and digital technologies.”
The integration of AI into business operations presents several opportunities. One major benefit of AI is in customer service. AI systems can now handle up to 95% of customer service tasks, significantly improving efficiency and customer satisfaction.
Productivity is another area where AI is making a significant impact. An HR technology leader acknowledged that the AI-driven HR system enables the management of various applications through a single dashboard, enhancing productivity and streamlining processes.
Application modernisation is also crucial. A senior developer noted that integrating new AI technologies with legacy systems can be challenging. IBM’s watsonx™ Assistant aids in converting outdated code into new formats, facilitating the transition and unlocking new capabilities.
When discussing AI’s impact, particularly at the executive level, questions about balancing investment and outcomes are frequent. A business consultant remarked that executives often struggle to find the right balance between investing in AI and achieving tangible results. It is crucial to present clear use cases and demonstrate ROI to stakeholders.
Ethical considerations are increasingly coming to the forefront. An IBM AI ethicist agrees that building trustworthy AI systems is a critical issue. It is essential to develop AI models with robust ethical standards to ensure reliable and unbiased outcomes.
Looking ahead, IBM is actively working on various AI projects, from enhancing customer experience to improving IT operations. IBM’s AI technologies, such as code assistants and digital assistants, are already delivering significant benefits. These innovations are transforming how businesses operate and interact with their customers.
AI is not just a buzzword but a transformative technology with real-world applications. AI should be seen as an integral part of existing technology and processes, Marius emphasises. Its ability to enhance efficiency and drive innovation is becoming increasingly apparent.
“As businesses and governments continue to explore AI’s potential, it is crucial to maintain a balance between investment, ethical considerations, and practical applications,” he concludes. “Trust, flexibility, and openness are key to maximising AI’s benefits. We must embrace these principles to fully leverage AI’s transformative power.”
Unleash the Transformative Power of AI and Automation
Technology Insight II
Brent Butchard, Sales Leader of IT Automation, Asia Pacific at IBM, notes that in today’s fast-paced digital landscape, organisations are making significant investments in artificial intelligence (AI), neural networks, and automation. However, despite these efforts, many companies find it challenging to convert insights into scalable actions. The issue, he explains, is not with the technology itself, but with the approach to its adoption and implementation.
“The foundation of AI and automation is strong, but we often find ourselves at an impasse,” Brent explains. “We generate valuable insights from advanced algorithms, only to hand them off to humans for execution. This bottleneck limits our ability to scale.”
One of the biggest challenges organisations face is complexity. In a recent survey, 82% of business leaders cited complexity as a major hurdle in achieving their goals. With more diverse technologies and systems in place, leaders struggle to adopt AI and automation because they cannot effectively execute the insights they have gained. Additionally, many organisations lack the visibility to know where their resources – both financial and operational – are being spent.
Brent believes that automation is the solution. By incorporating Generative AI and automation into their operations, companies can streamline processes, eliminate inefficiencies, and concentrate on strategic priorities. He compares this shift to advancements in Formula One racing, where automation significantly enhances both speed and precision.
A prime example of this is Dealer Layer, a US-based company that reduced its software deliverables’ latency by 98% through the use of AI and automation. By automating resource management, Dealer Layer was able to accelerate time-to-market and improve operational efficiency – all without increasing headcount.
“This is where the future lies. We need to move away from relying on human intervention for every step of the process,” Brent notes. “By automating mundane tasks, we can free up our workforce to focus on higher-value work.”
Moreover, automation helps organisations gain control over their networks. For instance, the National Electric Corporation was able to avoid 40% of potential issues through AI-powered predictive insights and automated responses. By identifying and addressing problems before they occurred, the organisation improved reliability and operational efficiency.
However, the challenge is particularly pronounced in the public sector, where cost concerns often overshadow potential benefits. Many departments view AI adoption as an expense, not an investment because they lack the tools to clearly articulate the value generated.
According to Brent, AI-driven financial controls and accountability are the solutions. He points to an example where a government agency reduced its cloud spending by 30% in just a few months by gaining better visibility into resource allocation.
Brent stresses the importance of not just adopting AI but also converting insights into actionable results. He points out that investing in AI without scaling its implementation often leaves significant potential untapped. Many organisations face challenges with complexity and lack of visibility into their AI investments, making it difficult to fully capitalise on the benefits of automation.
At IBM, strategic investments in automation have led to impressive results. AI-driven tools have reduced software delivery times, improved operational efficiency, and enhanced cost management by optimising cloud spending.
In addition, AI is playing a key role in risk mitigation, with tools that proactively address network vulnerabilities and improve issue resolution times. Brent underscored that the true value of AI lies in moving from reactive to proactive processes, freeing up human resources for higher-value tasks.
Ultimately, the message is clear: AI and automation must go hand-in-hand. Insights alone are not enough. To unlock the full potential of these technologies, organisations must focus on taking action and delivering real, measurable outcomes.
AI & Automation in Action
Kitman Cheung, IBM’s Technical Leader for ASEAN extended his heartfelt appreciation to all the participants who had gathered to discuss the future of artificial intelligence (AI) and digital transformation.
“Your presence here today is a testament to our shared commitment to driving innovation and harnessing the power of AI to transform industries,” Kitman acknowledges. “As we delve into the opportunities and challenges that lie ahead, it is clear that collaboration and knowledge-sharing are more critical than ever.”
Kitman reaffirms IBM’s commitment to nurturing a culture of innovation and collaboration in Malaysia. He is convinced that discussions are essential, acknowledging their significant role in shaping the trajectory of technology adoption across the region.
Events such as this one organised by OpenGov, play a crucial role by bringing together leaders from diverse sectors to explore the latest advancements in AI, exchange best practices and develop effective strategies for implementing these technologies within their organisations.
Kitman recaps the session by highlighting IBM’s rich history with groundbreaking innovations that have significantly impacted various industries, exemplified by their early adoption of technology to improve performance and efficiency.
In 1901, IBM patented a cheese cutter by applying computing technology to automate cheese cutting, revolutionising the industry by enhancing accuracy and efficiency. Fast forward to today, IBM continues to innovate with AI solutions tailored to specific enterprise needs.
IBM continues this legacy with advanced AI solutions designed to drive customer satisfaction, improve operational efficiency, and achieve cost savings. Emphasising a shift from large, one-size-fits-all models to modular AI systems, IBM focuses on creating specialised models tailored to specific enterprise needs. This approach helps overcome challenges such as model hallucinations and catastrophic forgetting, providing targeted expertise in various fields like HR and sales.
“Instead of relying on a single massive model, IBM advocates for specialised models that ensure high accuracy and relevance,” says Kitman highlighting the benefits of IBM’s modular AI solutions. “This modular approach not only ensures precision but also allows for flexible and scalable AI systems, integrating sophisticated data management, AI training, and governance.”
IBM’s advancements in AI have delivered tangible benefits, including drastically reducing data preparation times in the legal sector and boosting compliance efficiency for Brazil’s largest bank.
Beyond immediate applications, IBM is exploring exciting new frontiers, including partnerships that integrate quantum computing with AI and developing models to address global challenges like climate change. This commitment to addressing both current and future challenges underscores IBM’s broader mission.
“IBM’s innovations are about more than just technology – they are about transforming business operations and decision-making processes,” Kitman concludes.
Kitman expressed strong optimism about the future of AI in Malaysia, urging participants to explore AI’s potential within their respective fields and stay actively involved in the broader conversation about digital transformation.
“AI’s future in Malaysia is incredibly promising,” Kitman concludes. “By fostering ongoing collaboration, driving innovation and upholding ethical practices, we can ensure that AI becomes a powerful catalyst for positive change across our region.”
This article is the third of a three-part series. You can read Part 1 and Part 2 here.
