Adapt to the velocity of AI
At our recent AI Leadership Conference, we assessed where Malaysian business leaders stand in their AI journey using PwC’s AI Leadership Maturity Assessment. Encouragingly, most business leaders are 'Activators’, who are still in the experimental phase but with a healthy level of excitement. Transitioning to strategic AI adoption, however, demands a new type of leadership.
Where are Malaysia business leaders on their AI journey?
Explore key findings from PwC's AI Leadership Maturity Assessment
Everything, everywhere, all at once
AI technologies are evolving at a breakneck speed, offering endless innovation yet leaving many scrambling to keep pace. In the mix, AI's tangled supply chains, especially GenAI and large language models (LLMs), add another layer of complexity. These supply chains involve multiple interconnected elements, such as the sourcing of training data from various global datasets, semiconductor chips critical for AI processing power, development of AI models and cloud platforms that play a crucial role in hosting AI models. All these elements typically span different geographic locations, resulting in a decentralised framework that is vulnerable to shifts in international trade agreements and regulations. This reliance on foreign infrastructures makes the systems particularly susceptible to changes in international policies and the evolving landscape of global technology standards.
These dependencies pose looming risks if global providers shift gears or impose export restrictions. Today's geopolitical chessboard only amplifies these challenges. For instance, in early 2025, the trade war dampened sentiments around the viability of data centre projects.
How should boards guide companies to thrive in this chaos?
New era, new leadership imperative
When it comes to concerns about AI usage in companies, data risks and responsible AI are on the top of directors’ minds. This is in line with foundational responsibilities for the board which includes establishing corporate governance structure and control.
Q: What is your top concern about GenAI at your company?
Source: PwC Malaysia’s Corporate Directors Survey 2024
However, with rapid AI technological developments, will the governance of today still work for tomorrow’s world? Does it inspire both public and organisational trust?
The real question is not how advanced our technologies can become, but how responsibly we design the norms, institutions, and infrastructures that enable these technologies to serve society.
Discussions from PwC Malaysia’s AI Leadership ConferenceWhile managing risks related to AI is important, keeping pace with technological changes is equally vital as we can only manage what we know. Based on survey findings, only 18% of Malaysian board members are well-informed about GenAI trends and developments.
To adapt to the velocity of AI, leaders need to reframe their mindset, take lessons from past growth curves and structure and prioritise initiatives by pace.
Velocity of AI: What leaders need to do next
Reframe your mindset
Think exponentially. Breakthroughs like GPT models and robotics can disrupt entire industries in months.
Take lessons from past growth curves
Early adopters win, laggards fall behind.
Spot inflection points early and act fast.
Structure and prioritise initiatives by pace
Fast
Customer-facing AI pilots
Medium
Optimise internal processes
Slow
Modernise core systems where it matters
Businesses with leaders who are trusted to adapt to changing developments win. MIT Center for Information Systems Research (MIT CISR) highlights this shift, showing that US companies with boards that were AI savvy enjoyed returns averaging 10.9 percentage points above industry average. These AI-savvy boards tackle the sharp AI learning curve through board trainings or by having committees focused on cybersecurity, talent and technology or digital products. Thus, proving that adaptability and learning are crucial for maintaining a competitive edge in the AI era.
Questions for board members to consider:
- Do we have a process in place to assess and enhance the board's understanding on AI?
- Do we have sufficient technologically aware board members, or are we considering the engagement of an external expert when none are currently available?
- Have we established a consensus on the board strategy regarding AI, and who within and outside the board is best suited to oversee the company's AI initiative?
Strive for responsible and proactive AI governance
Besides technological development, AI regulations are coming in fast on all levels and they have a direct impact on businesses today. Regulators with varied perspectives make the landscape fragmented and complex. While policymakers are increasingly adopting a risk-based approach, the adoption differs by jurisdiction. Analysts and industry stakeholders generally recommend softer regulatory standards for Malaysia, but a global shift towards tighter laws is anticipated.
How some countries are approaching AI governance
United States ❯
There is no comprehensive federal legislation on AI, or a single national AI governance strategy.
Instead, its emerging AI governance regime is composed of various pieces of state-level legislation, along with national principles, guidance and policies. Examples include the National Institute of Standards and Technology's AI Risk Management Framework.
United Kingdom ❯
The UK plans to use existing regulators for cross-sector AI legislation while developing centralised monitoring mechanisms, such as the Digital Regulation Cooperation Forum Multi-Agency Advisory Service.
Discussions on a formal AI regulatory framework has gained momentum, especially with the reintroduction of the AI (Regulation) Bill.
China ❯
China was one of the first jurisdictions to introduce any form of legislation specifically governing AI. The three main pillars of China’s overall AI governance regime are: content moderation, data protection and algorithmic governance.
Chinese policymakers have also indicated that they will seek to formulate a general law that applies broadly across all sectors in the coming years.
Singapore ❯
There is no general law that applies broadly across all sectors in the coming years at present. However, sectoral regulators have begun issuing non-binding guidance on the use of AI in specific industries.
An example is the Monetary Authority of Singapore issuing the Principles to Promote Fairness, Ethics, Accountability and Transparency in the Use of Artificial Intelligence and Data Analytics in Singapore’s Financial Sector.
Note: The information above is extracted from the World Bank Group’s 2024 report ‘Global Trends in AI Governance: Evolving Country Approaches’. Please note that this information may change in the future due to the rapidly evolving nature of AI governance and related technologies
Companies working within global supply chains will need to adeptly navigate between soft standards and hard laws. This means cross-jurisdictional coordination to ensure robust AI governance and manage the associated risks, such as data security.
And Malaysian boards know that addressing these risks is important. Addressing data risks and responsible use of GenAI were the top concerns among Malaysian board members when it comes to GenAI at their companies based on our survey.
The bad news? The current level of board engagement on AI may not adequately prepare members to steer the company’s AI strategy. According to findings from PwC Malaysia’s Corporate Directors Survey 2024, there are ample opportunities to scale up board engagements on AI and GenAI matters, especially on the governance and security side.
We must go beyond reactive oversight and begin building systems that are intentionally aligned with human values, even in the absence of direct intervention.
Discussions from PwC Malaysia’s AI Leadership ConferenceThere is room for improvement in board engagement on GenAI issues
of our board receives sufficient information on the company’s use of GenAI
of our board allocate adequate time to understand GenAI’s impact on our company
participated in a tabletop exercise to test incident response readiness
Source: PwC Malaysia’s Corporate Directors Survey 2024
Time for boards to get their hands dirty
Boards need to go beyond reactive oversight to actively crafting governance strategies that align with human values. This means engaging in AI conversations both within the company and on a wider stage. Trust in a company’s AI governance framework hinges on the board’s proactive engagement with AI-related issues.
In the AI age, trust cannot be assumed. It must be engineered deliberately, governed actively and verified continuously.
Discussions from PwC Malaysia’s AI Leadership ConferenceQuestions for board members to consider:
- Do we have a clear framework/clarity on how AI initiatives will be overseen across the governance structure?
- Is enough time being allocated to discuss regulatory landscape for AI, including understanding management’s approach to regulations and discussing legal implications?
- Does the board understand management’s approach to Responsible AI?
Champion human-AI orchestration
A truly transformational movement is tech-forward, people-empowered. Business models that rely on traditional scale can give way to those favouring agility and innovation. Success in the AI age will stem not just from technological advancements, but from reshaping the organisation and its approach to work as well.
PwC’s 2025 AI Jobs Barometer reported that despite fewer job postings overall in Malaysia in 2024, the share of AI-related jobs increased. However, the demand for AI skills primarily focuses on specialised areas such as machine learning engineering and cloud operations. Embracing AI requires us to ‘Think big’ which means treating it as a transformative tool.
Organisations should focus on what truly requires human insight: guiding AI, innovating with its help and making swift, AI-supported decisions. To fully harness AI's potential, new skills are essential. Globally, skills for AI-exposed jobs are changing 66% faster than for other jobs: more than 2.5x faster than last year. Are Malaysian boards and their teams well prepared to win in this evolving skills landscape?
Board members who responded to our survey showed very low confidence in both their own’s and their management’s skills in GenAI. While it's understandable given the rapid evolution of AI technology, these figures raise the question: is there a deeper issue at play?
Learning requires unlearning. Embrace change. Just as with the digital revolution, the world is transforming around us. As AI generates ever more content, discerning signal from noise becomes crucial. Leadership and trustworthiness are no longer just virtues, they're strategic advantages.
Discussions from PwC Malaysia’s AI Leadership ConferenceBoards expressed a low level of confidence in both their own’s and their management skills in GenAI
of directors said they have the skills to oversee the company’s GenAI strategy
of directors believe their management has the skills to execute the company’s GenAI strategy
Source: PwC Malaysia’s Corporate Directors Survey 2024
The missing variable in boards’ AI equation
To bring human-AI collaboration to life, the right talent strategy is critical to success. However, some boards may not have fully leveraged the human aspect yet.
People-related GenAI concerns come last for boards
Source: PwC Malaysia’s Corporate Directors Survey 2024
Malaysian CEOs echo similar sentiments, with just 23% planning to weave AI into their workforce and skills strategy. This highlights a crucial need to shift leadership mindset on AI and GenAI adoption for corporate Malaysia.
Human-AI collaboration goes beyond simple automation, combining AI's autonomy with human oversight. For responsible AI implementation, human judgment is vital in decision-making and aligning with human values. This 'human-at-the-helm' approach helps define AI's autonomy boundaries and ensures proper intervention.
AI deepens our perception of the world, but the crucial judgment of what to do with that insight remains firmly human.
Discussions from PwC Malaysia’s AI Leadership ConferenceQuestions for board members to consider:
- Have we engaged with the CHRO to understand how talent strategies will likely evolve with AI, including areas currently being outsourced?
- How effectively are we engaging with or encouraging management to enhance their knowledge, and nurture an environment that is comfortable asking questions and pursuing lifelong learning?
- Has the impact of AI on employees been clearly communicated to demonstrate how it aligns with company goals and enhances their work?
Steering through complexity and building trust
As leaders, what is your next step?
Start by conducting a pulse check of your company through benchmarking exercises. Additionally, gathering the right information is crucial. Consulting relevant guidance materials will help direct you towards effective strategies.
At PwC, we've developed an AI Leadership Playbook designed to assist today’s leaders in building trust in AI and steer through the complexities of the AI era. This playbook focuses particularly on three key areas.
Take a copy of the key findings with you
Have a read of PwC’s AI leadership playbook
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