KUALA LUMPUR: Investment in artificial intelligence (AI) across the Asia Pacific is projected to grow fivefold by 2030, reaching US$117 billion, with generative AI (GenAI) emerging as the region's fastest-growing enterprise technology, according to Deloitte.
However, this surge in productivity comes with challenges, the firm noted. While interest in adopting generative AI remains strong, nine out of 10 Malaysian companies believe it also introduces security vulnerabilities, including cybersecurity risks.
"While AI solutions offer powerful productivity tools, this also increases the possibility of data breaches or regulatory fines if these tools are not managed properly," said Deloitte Malaysia financial services industry leader Justin Ong.
According to Ong, the Malaysian Communications and Multimedia Commission's (MCMC) introduction of a regulatory framework for social media services and internet messaging service providers is a step in the right direction, but more needs to be done.
"Less than one in 10 organisations across the Asia Pacific currently have the governance structures necessary to achieve trustworthy AI, which Deloitte has also adopted in our own GenAI initiatives under the Trustworthy AI Framework," he said.
Deloitte's AI at a Crossroads report found that only 13 per cent of the global financial services industry (FSI) is adequately prepared to implement trustworthy AI.
In Malaysia, the report revealed that 51 per cent of companies continue to face challenges in adopting AI technologies, while 37 per cent cited a lack of understanding about AI and its potential.
The report further revealed that less than 60 per cent of Malaysian organisation employees polled have the required level of skills to use AI solutions in an ethically and legally compliant way.
While the FSI is one of the leading adopters of digital innovation, the report revealed that only 13 per cent of FSIs across the globe were deemed as 'ready' for trustworthy AI.
As demand for financial services continues to grow, particularly among younger and more tech-literate consumers, good governance is key to ensuring the industry's long-term advancement or risk losing out.
"Despite the industry's efforts to grow cybersecurity measures in recent times, we've noticed that 42 per cent of financial services organisations polled reported an increase in incidents within the last financial year.
"As a sector that holds sensitive financial information, the financial services industry must increase governance efforts to facilitate the necessary security levels required," Ong added.
The Deloitte survey, one of the most comprehensive assessments of AI governance maturity in the region, involved nearly 900 senior leaders across 13 Asia Pacific locations.
Source: NST