As organisations across Malaysia accelerate their investments in artificial intelligence (AI), experts are cautioning that businesses could widen the AI capability gap if technology adoption moves faster than efforts to prepare and develop their people. While AI continues to transform how organisations operate, leaders are increasingly recognising that technology alone will not determine long-term success. Human judgement, critical thinking, ethical decision-making and strong governance remain essential to ensuring AI is used responsibly and effectively.

The issue was highlighted during a recent leadership forum hosted by ICAEW Malaysia in collaboration with FIDE FORUM, titled “From Oversight to Foresight”. The forum brought together leaders from governance, technology and finance to discuss how AI is reshaping financial institutions and the leadership capabilities required to maximise its potential.

(Fourth from left) Mr. Danial Rahman, CEO of ASLI, moderates a panel on AI and human judgement at the "From Oversight to Foresight" leadership forum, hosted by ICAEW Malaysia and FIDE FORUM.

Moderated by Danial Rahman, CEO of ASLI, the discussion emphasised that AI should not be viewed simply as a technology challenge, but as a governance and people imperative. During the session, Danial noted that more than three-quarters of the audience, comprising professional bankers and chartered accountants, were already using AI in their professional and personal routines, highlighting the growing integration of AI into everyday life and work.

As AI increasingly automates routine analytical tasks, organisations will place greater value on professionals who can exercise sound judgement, think critically and challenge AI-generated insights. The ability to interpret context, question assumptions and navigate ethical and governance complexities will become increasingly important as businesses rely more heavily on AI-powered tools and systems.

The transformation is particularly significant for chartered accountants, whose roles are expanding beyond traditional financial responsibilities. As organisations adopt AI, accountants are increasingly expected to contribute to governance, risk management and workforce readiness. Businesses that invest heavily in AI technology without simultaneously developing the human capabilities required to govern and use it effectively may struggle to achieve sustainable long-term value.

Dato’ Mohd Faiz Azmi, ICAEW Council Member and Chairman of the Securities Commission Malaysia, emphasises the need for human leadership in the AI era at the "From Oversight to Foresight" forum.

Dato’ Mohd’ Faiz Azmi, ICAEW Council Member and Chairman of the Securities Commission Malaysia, highlighted that AI should not be treated as simply another technology upgrade. Instead, it represents a transformative force that requires organisations to rethink leadership, talent development and governance. Unlike traditional technologies that often produce predictable, rules-based outcomes, AI introduces new levels of uncertainty, making human oversight and professional judgement more important than ever.

As AI adoption accelerates, technical expertise alone is unlikely to be sufficient. Organisations will increasingly need professionals who can ask the right questions, critically assess AI-generated outputs and apply sound judgement when making complex business decisions. This human capability will be particularly important in situations where AI may lack the necessary context or produce results influenced by incomplete or biased data.

The forum also highlighted the growing importance of responsible AI governance. Because AI systems learn from data and may inherit existing biases or fail to recognise important contextual factors, organisations must establish clear frameworks for oversight, accountability and ethical decision-making. This reinforces the role of chartered accountants in strengthening governance, building trust and helping organisations ensure that AI adoption delivers sustainable and responsible outcomes.

The scale of the governance challenge was further illustrated by research from the Hong Kong Chartered Governance Institute. Calvin Cheng, Founder of Wizpresso, shared findings from an analysis of more than 2,500 listed companies, revealing that while 88% of companies discussed AI in their annual reports and strategies, fewer than 25% addressed AI governance and AI risk management.

The findings point to a significant disconnect between organisations' ambitions and their readiness to manage AI responsibly. Some businesses may be promoting ambitious AI strategies without developing the internal capabilities, governance structures and workforce expertise required to turn those ambitions into meaningful results.

Calvin Cheng, Founder and CEO of Wizpresso, highlights the importance of AI governance and workforce capability during the panel session at the "From Oversight to Foresight" leadership forum hosted by ICAEW Malaysia and FIDE FORUM.

Cheng also stressed that providing employees with AI tools is not enough. Organisations must equip their people with the knowledge and training needed to use those tools effectively and efficiently. AI literacy, therefore, represents only the beginning of the journey, with businesses needing to focus more broadly on developing the skills required to evaluate, question and apply AI outputs appropriately.

Dato’ Seri Hamzah Kassim, Chairman of Prudential Assurance Malaysia and an adviser to boards on technology governance, similarly noted that many AI initiatives fail to progress not because of technological limitations, but because leadership teams are not adequately prepared to drive organisation-wide transformation. Limited risk appetite, talent shortages, difficulties in demonstrating return on investment and the scale of organisational change required continue to hold many businesses back.

Dato’ Seri Hamzah Kassim, Chairman of Prudential Assurance Malaysia, discusses enterprise-wide transformation and technology governance at the "From Oversight to Foresight" forum hosted by ICAEW Malaysia and FIDE FORUM.

He emphasised that AI should not be treated as a standalone project, but as a transformation of the wider business and operating model. In many cases, AI-related failures are more closely linked to governance shortcomings than technical problems. Without effective collaboration between boards and management, organisations may struggle to move beyond experimentation and translate AI investments into meaningful business outcomes.

The changing AI landscape is also prompting organisations to rethink how they approach talent. While the traditional logic-based era placed a strong emphasis on analytical, procedural and precise skills, the AI era is increasingly creating demand for professionals who can think laterally, ask better questions and challenge the results produced by machines.

The message emerging from the forum is clear: AI is not necessarily replacing human capability, but redefining what makes human expertise valuable. While technical skills remain important, competitive advantage will increasingly belong to organisations that cultivate employees capable of exercising judgement, understanding context, challenging assumptions and making decisions that extend beyond the capabilities of machines.

For boards and business leaders, this means viewing AI as more than a technology investment. The long-term success of AI adoption will depend not only on the sophistication of the technology itself, but also on the strength of an organisation's leadership, governance, culture and talent. Businesses that create an environment where employees are encouraged to question AI outputs and make informed decisions will be better positioned to manage risks and capture opportunities.

For chartered accountants, this shift presents a significant opportunity to play a more strategic role in the AI era. Their reputation for integrity, objectivity and professional judgement places them in a strong position to bridge the gap between technological capability and responsible decision-making. As AI-related risks and opportunities become increasingly complex, accountants can help ensure that innovation is supported by accountability, transparency and effective governance.

Ultimately, as AI tools become more accessible and widely adopted, technology itself may become less of a competitive differentiator. Instead, the organisations that stand out will be those that successfully combine AI capabilities with distinctly human strengths, including critical thinking, ethical judgement, curiosity and the confidence to challenge AI-generated conclusions.

The future of work is therefore unlikely to be defined by a competition between humans and machines. Instead, it will be shaped by how effectively people and AI collaborate. Organisations that invest as much in developing human judgement and leadership capabilities as they do in deploying AI will be better equipped to build trust, manage risk and create sustainable long-term value in an increasingly AI-driven economy.

Explore ICAEW's AI resources at https://www.icaew.com/technical/technology/artificial-
intelligence