KUALA LUMPUR: Malaysian companies are embracing artificial intelligence (AI) at a rate faster than the global average, yet a failure to bridge the "skills gap" is leaving massive productivity gains untapped and fueling employee burnout.
According to the EY 2025 Work Reimagined Survey, while 81 per cent of Malaysian employees using generative AI (GenAI) report significant time savings, the transition has not been seamless. Paradoxically, 68 per cent of workers reported an overall increase in workload, suggesting that efficiency gains are being swallowed by rising demands rather than used to alleviate pressure.
The findings, based on a survey of 300 employees and 30 employers across seven industries in Malaysia, highlight a "critical opportunity" for local firms.
While AI is saving high-performing users upwards of 15 hours per week, the survey reveals a stark training deficit. Only 12 per cent of Malaysian employees feel they have received sufficient training to fully harness the technology.
"AI is no longer a future concept; it’s a present-day productivity engine," says Anil Shivadas, Partner at EY Consulting.
"Malaysian organisations that fail to invest in new skills risk losing hundreds of hours per employee each year."
The report signals a fundamental shift in the Malaysian labour market. For the first time, the opportunity to work with AI and the latest technology has become the second most important factor for attracting talent, overtaking traditional priorities like office location.
A total-compensation perception gap persists in Malaysia, with employers overestimating employee satisfaction by up to 25 per cent. Furthermore, while attrition intent has dropped, one in four employees still plan to leave, driven by demand for AI exposure and career growth.
Despite the growing pains, Malaysia’s workplace culture appears resilient. Two-thirds of employees feel empowered by management, and 81 per cent feel a strong connection to their teams. Furthermore, 73 per cent believe their organisational culture has improved over the past year.
Low Choy Huat, Malaysia people consulting leader at EY, suggests that the key to retention lies in a "personalised" approach.
"By combining fair compensation with AI-driven flexibility and learning, employers can create a proposition that keeps talent engaged for the long-term," said Low.
The report added that without urgent action to close the skills gap and encourage experimentation, Malaysian companies risk losing their competitive edge in a rapidly evolving digital economy.