2 reports on the state of AI in business and in the Malaysian Financial Sector

I was involved in some large scale IT and dotcom implementation in the early 2000s. Millions of dollars spent on acquiring software and hardware based on the promise of efficiency, cost reductions, revenue increase. This promise which was contained in carefully crafted powerpoint presentations looked enticing. But actually bringing it to reality was a different story. It always amazes me when I engage the management team of that time, they would almost always say to me ’change management is going to be critical to the success of this implementation’ and ‘the people issues have to be front and center’. I once responded ‘if change management and people strategies’ are the most critical aspects of this project, why are we spending less than 1% of the total project budget’. I didn’t get a lot of fans when I say things like that. So it’s fascinating to me that 2 reports caught my eye recently, one from the MIT (The GenAI Divide: State of AI in Business 2025) and the other from Bank Negara Malaysia Artificial Intelligence in the Malaysian Financial Sector.

Insights from MIT & Bank Negara Malaysia The MIT Report: The GenAI Divide The MIT Report suggests that AI training is a critical component of a strategic GenAI Implementation (Visual generated by Napkin) This report, based on a systematic review of over 300 AI initiatives and interviews with senior leaders, presents a powerful case for the "GenAI Divide" :

• High Adoption, Low Transformation: Despite an estimated $30–40 billion in enterprise investment into GenAI, 95% of organizations are getting zero return. The divide is determined not by model quality but by the approach to implementation.
• The Core Barrier: A "Learning Gap": The primary reason for this failure is a learning gap. Users resist tools that don't adapt, and enterprise-grade systems often fail to integrate with day-to-day operations.
• The "Shadow AI Economy": Over 90% of surveyed workers reported using personal AI tools for work tasks, vastly outnumbering the 40% of companies with official subscriptions. This shows individuals can succeed with flexible tools, but this uncoordinated usage does not create enterprise-wide value.
• Workforce Impact: Executives now consistently emphasize AI literacy as a fundamental requirement for new hires, noting that recent graduates often exceed experienced professionals in this area.

The report concludes that to bridge this divide, organizations must buy rather than build, empower line managers rather than central labs, and select tools that integrate deeply while adapting over time.

The Bank Negara Malaysia Report: A Strategic Imperative Building internal capabilities has been identified as a critical component of a successful AI Implementaiton by Bank Negara Malaysia (visual generated by Napkin) This BNM paper reinforces these findings within the Malaysian context, providing a clear call to action:

• Growing Adoption & Strategic Priority: A significant majority of Malaysian financial service providers (71% of banks, 77% of insurers) have implemented AI, with over 60% viewing it as a strategic priority for the next 1-3 years.
• Risks Highlighted: The report details key risks like Bias , Model Risk , Cybersecurity threats , and the risk of "GenAI hallucinations." It notes that leading adopters demonstrate greater confidence in managing these risks, suggesting that building internal capabilities is the solution.

Talent Shortages: The paper identifies talent shortages and a lack of internal expertise as key challenges for FSPs, advocating for industry-wide collaboration and strengthening talent pipelines. While the hype around Generative AI (GenAI) continues to build and organizations are pouring significant capital into AI initiatives, a startling truth is emerging: the majority of these investments are failing to deliver anticipated returns. The data points to a core reason: a profound "learning gap" within the workforce. Your cutting-edge AI tools are only as effective as the people wielding them, and unfortunately, many teams are simply not equipped to leverage them strategically.

The Problem: The "Shadow AI Economy" Paradoxically, while enterprise-wide AI adoption lags, the MIT Report found that a "shadow AI economy" is thriving. Individual employees, driven by personal curiosity and the immediate desire for efficiency, are experimenting with GenAI tools on their own. They're using AI for everything from drafting emails and summarizing documents to brainstorming ideas and automating mundane tasks. This bottom-up exploration, while a testament to human ingenuity, is largely uncoordinated and, critically, not translating into measurable, strategic business value. For HR Managers and Corporate Training Heads, this presents a significant challenge. You're facing pressure to demonstrate ROI on substantial AI investments, yet your workforce often lacks a cohesive strategy for AI integration. The unequipped workforce becomes a bottleneck, and the promise of AI-driven transformation remains elusive. This disconnect creates a chasm between potential and reality, leading to frustration and wasted resources.

Our Solution: A Bottom-Up Approach to AI Augmentation The answer to this predicament isn't more technology; it's empowering your people. At RESB, we believe the strategic response to the GenAI divide lies in a bottom-up approach to AI augmentation. Our solution isn't another piece of software, but a transformative workshop designed to turn your existing workforce into AI "super users." The User's Journey: From Casual to Ultra User The User's Journey: From Casual to Ultra User (Visual generated by Napkin) Based on over two decades of experience in corporate training and change management, I believe a user's journey with AI can be categorized into four distinct stages. This framework, which my knowledge of AI and computers helped me develop, is a key to understanding and bridging the GenAI divide:

• The Casual User: Those who are TRYing out AI. They experiment with tools but lack a clear purpose.
• The Power User: Those who have started to LEARN how to use AI and actively seek to understand its capabilities.
• The Super User: Those who use AI as a tool to help them THINK. They integrate AI into their creative and strategic process, moving beyond simple task automation.
• The Ultra User: Those who use AI as a critical component of their workFLOW. They have mastered AI agents and automation, achieving a state of "force multiplication" where their output is exponential.

This approach goes beyond basic tool functionality. We focus on fostering a deep understanding of AI's capabilities and limitations, equipping individuals with the critical thinking skills necessary to apply AI strategically to their daily workflows. The benefits are multifold:

• Unlocking Individual Productivity: Employees learn to consciously integrate AI tools, leading to significant personal efficiency gains and allowing them to focus on higher-value tasks.
• Building a Foundation for Innovation: The most successful enterprise AI deployments start with "power users" who champion internal solutions. Our workshop creates these internal champions within your organization.
• Creating a Culture of Conscious Integration: Moving beyond ad-hoc experimentation, our workshop fosters a culture where AI is leveraged intentionally and ethically, maximizing its impact across the organization.
• Sharing tools and skills that can be used immediately to optimise employees output.

Empowering staff and employees to integrate AI into their routines will enablwe them to understand how AI can maximise their contribution at work (Visual generated by Napkin) I have used the 20 years of experience I have in designing and conducting transformational training to develop a new workshop called ‘Supercharge With AI’, a 2 day workshop designed to turn anyone from the casual user to an ultra user. This workshop is HRDC claimable so is 100% free for you if you are a HRDC contributor.

Your Next Step: The Blueprint for Success Are you ready to bridge the GenAI divide and transform your AI investments into a true competitive advantage? We are offering our complimentary no-obligation workshop Supercharge With AI - An Introduction’, a 90 minute workshop that can be conducted virtually or in person.  Click here to request for your complimentary workshop.

About the Author Reza Ali, Founder of RESB, is a thought leader dedicated to unlocking human potential through strategic technological integration. With a deep understanding of organizational dynamics and emerging technologies, Reza empowers businesses to navigate the complexities of digital transformation by focusing on the most critical asset: their people.

About RESB RESB is committed to empowering professionals and organizations to thrive in the evolving digital landscape. Through practical, impact-driven workshops and strategic advisory, we bridge the gap between technological potential and human capability, fostering a future where innovation and efficiency go hand-in-hand.