Responsible AI Implementation Critical For Future Of Malaysian Banking Workforce
KUALA LUMPUR, July 9 (Bernama) -- Malaysia’s banking sector is strategically positioning itself to strengthen its regional leadership in responsible artificial intelligence (AI) deployment, as the technology enters a definitive new phase in which financial industry success is no longer judged by the sheer speed of technology adoption, but by the maturity and responsibility of its implementation.
With financial institutions facing a landscape defined by rapid automation and emerging systemic risks, industry leaders at the Asian Institute of Chartered Bankers (AICB)’s fourth Malaysian Banking Conference (MBC 4.0) and second Bank Audit Conference (BAC 2.0) emphasised that sustaining the competitive edge will rely heavily on a combination of cross-sector collaboration, continuous workforce development, and unyielding governance frameworks.
The human element: building trust capital
AICB chief executive Edward Ling said that while the adoption of artificial intelligence (AI) has become widespread across the banking industry, public and institutional trust remains the key differentiator for leading financial hubs.
“AI adoption is no longer optional — it is already happening across the industry. The critical question is trust: who manages the data, oversees risks and ensures accountability? Ultimately, the answer is people. The future of banking will not be delivered by technology alone but by professionals who know how to use AI responsibly,” he said at a media roundtable.
He also highlighted that 79 per cent of financial institutions report a distinct shortage of technical AI talent, adding that capacity building should no longer be viewed as a standalone human resources function but as a strategic business imperative.
Ling said that while AI has the potential to automate tasks, enhance decision-making and improve customer experiences, its value can only be fully realised if employees understand how to use AI and work effectively alongside the technology.
“Upskilling should not be seen solely as an HR initiative. It must be embedded within an organisation’s business strategy because it directly impacts productivity, competitiveness, risk management and, ultimately, trust.
“The focus should be on making learning practical and continuous — not simply sending employees to training courses, but helping them apply new skills in their day-to-day work, solve real business challenges and improve processes. Capacity building is essential. In banking, we often say capital is important, but human capital may be the most important capital of all,” he added.
Moving beyond the pilot phase
Co-founder and chief executive officer (CEO) of Addo AI, Singapore, Dr Ayesha Khanna, a speaker at AICB’s MBC 4.0, said organisations seeking to scale AI across their businesses must move beyond isolated pilot projects and instead adopt a disciplined, enterprise-wide strategy aligned with core business objectives.
She said many companies have yet to progress beyond the proof-of-concept (POC) phase, urging businesses to accelerate the transition from experimentation to deployment.
“Many CEOs and chief information officers (CIOs) should identify three to five strategic priorities that can significantly improve profitability, business growth and market expansion, and only pursue AI use cases that directly support those objectives,” she said.
She added that another key differentiator of successful AI adopters is their willingness to redesign business workflows rather than simply automate existing processes.
Khanna also said organisations should actively involve employees in the transformation process, encouraging them to identify operational improvements and innovation opportunities instead of focusing solely on automation.
“If they feel secure about their jobs, then they will actually participate,” she said.
Strict governance as a competitive advantage
AMMB Holdings Bhd (AmBank Group) group chief information security officer Malini Kanesamoorthy said banks, as heavily regulated institutions, need to move beyond treating AI as just another technology trend and instead adopt an “AI-first” mindset supported by updated governance, risk management and leadership commitment.
Malini, who is also AICB’s chief information security officers’ forum chair, said organisations should revisit their governance frameworks, risk control metrics, risk appetite and tolerance levels to reflect AI’s growing role across banking operations, rather than creating standalone AI policies.
“AI is already here and increasingly integrated into business operations. We must strengthen our governance frameworks to keep pace with its adoption while remaining deliberate about how extensively we choose to leverage the technology.
"Strong support from senior leadership was essential to driving AI adoption, but banks also needed to address workforce agility by improving AI literacy and helping employees understand that AI is intended to complement and not replace human roles,” she said.
She said protecting customer data and maintaining system resilience remained top priorities, noting that AI-powered threat detection had already been embedded in the bank’s cybersecurity platforms for years.
Malini said AmBank also works closely with regulators, including Bank Negara Malaysia, Bursa Malaysia and the Securities Commission Malaysia, while integrating AI-related supply chain considerations into its third-party risk management framework.
-- BERNAMA