Malaysia is rolling out one of Southeast Asia’s most ambitious plans for artificial intelligence.

Backed by billions in investment and a detailed National AI Roadmap, the country’s move towards automation is set to reshape businesses and disrupt jobs across every sector.

Studies have shown that automation will hit some 600,000 jobs in Malaysia over the next five years. According to the country’s national statistics department, clerical, administrative, and manufacturing roles are the ones that are going to be affected the most.

But it’s not just job losses that Malaysia should gear up for. Global projections indicate a net gain in employment, with an estimated 85 million jobs disappearing worldwide by 2025 but concurrently 97 million new positions being created. New roles across AI, digital, green, and deep tech sectors have already started to emerge.

Malaysia needs to ensure their workforce are ready in grabbing the job opportunities emerging with AI. As the government, major employers, and educators ramp up efforts to build an AI-ready workforce, the next wave of workplace transformation is no longer a distant prospect – it’s already under way.

But what does this mean for hiring, employee development, and the day-to-day realities of managing people? Which jobs will be most affected – and what new roles will take their place?

Malaysia’s AI Roadmap: A quick overview

Announced in 2021 and reinforced with updates through 2025, Malaysia’s National AI Roadmap charts a path to high-tech nation status by 2030. Its core aim is to embed AI across strategic sectors like manufacturing, healthcare, finance, and education, stimulating productivity and opening new avenues for economic growth.

But the roadmap is not just about tech adoption. It sets out clear principles for responsible AI, aligning with global standards on ethics, privacy, and transparency. Workforce transformation is a central pillar, with initiatives designed to upskill millions and close digital divides between regions and industries.

The message is clear: AI integration is national policy, and talent development is as critical as the technology itself.

Workforce automation: What’s changing?

Automation powered by AI is moving from pilot projects to daily operations in many Malaysian organisations. Large companies are already using AI-driven CV screening, recruitment chatbots, digital onboarding, and predictive analytics for talent planning.

In multinationals, AI-driven HR platforms are reducing manual workload by up to 40%. Local companies and SMEs are catching up, with government grants and cloud providers making these tools more accessible.

The pace is uneven – international sectors and tech-driven firms are further ahead, while traditional industries are just starting to automate. But across the board, the direction is clear: routine administrative tasks and repetitive processes are getting digitised, freeing up HR and managers to focus on higher-value work.

Top HR implications of AI-driven workforce automation

Talent acquisition and recruitment

AI tools are already screening CVs, conducting first-round interviews, and scheduling candidates – often 24/7. This slashes time-to-hire by as much as 60% and helps organisations reach a broader pool of applicants. However, recruiter roles are shifting from admin-heavy to relationship-focused, and candidates expect more streamlined, digital-first experiences.

Workforce planning and skills gap analysis

Predictive analytics allows more precise forecasting of workforce needs. AI can flag emerging skills gaps, forecast attrition risk, and even suggest reskilling paths. This supports a shift to dynamic, skills-based workforce planning instead of static headcount models.

Employee experience and engagement

AI-driven platforms personalise learning, automate routine HR queries, and monitor sentiment through pulse surveys. This means faster answers for employees, targeted training suggestions, and earlier intervention on engagement risks. The HR function becomes more responsive, but must balance automation with human touchpoints.

Redefining roles and job descriptions

As automation handles routine tasks, roles evolve. Employees move from repetitive work to higher-value problem-solving, while new jobs emerge – such as AI trainers or data analysts. Job descriptions are in flux, and career pathways are less linear.

Ethical, legal, and compliance considerations

AI in HR brings major questions about data privacy, algorithmic bias, and transparency. Malaysia’s recent National Guidelines on AI Governance and Ethics set out principles, but enforcement is voluntary. Companies must self-regulate, ensuring fair and explainable AI-driven decisions, especially in hiring or performance management.

What now for HR leaders?

1) Assess automation readiness

Start with an honest audit: Which HR processes can be automated? Where are the gaps in digital skills? Companies that have done this – such as leading banks and telcos – have achieved quick wins by digitising onboarding or payroll, freeing up time and improving compliance.

2) Upskill and reskill

With nearly 20% of formal sector jobs predicted to be significantly affected by AI in the next three to five years, upskilling is no longer optional. Invest in AI literacy for all staff, and create targeted development plans for roles at risk of automation.

3) Foster a culture of agility and adoption

Change management is key. Involve teams early, communicate transparently about changes, and reward adaptability. Agile organisations embrace continuous learning – even in traditional functions.

4) Collaborate for change

Work closely with IT, line managers, and business leaders to ensure seamless adoption. Align HR data, security, and legal teams to address compliance and privacy from the outset.

Overcoming challenges and mitigating risks

Getting past the big roadblocks in AI adoption means tackling a few key areas. The main ones are resistance to change from employees, a shortage of people with the right skills, and navigating complex ethical dilemmas. But there are clear ways to address these.

First, to help people embrace these changes, clear and consistent communication is vital. Explain why AI is being implemented and how it will benefit everyone. Along with that, robust training initiatives are crucial.

Having transparent AI policies also helps build trust, as employees understand the rules of engagement. A really effective strategy is to involve employees in shaping automation projects. When people have a say, they're more likely to support and champion the changes.

Furthermore, it's not enough to just implement AI; you need to constantly monitor it. That's why regularly reviewing and auditing AI-driven systems is so important. These audits help ensure fairness, making sure the AI isn't perpetuating biases, and that security measures are robust.

Always ensure human oversight on key decisions. AI can provide insights, but critical choices should remain with human judgement.

Malaysia’s AI roadmap is ambitious and exciting, but its ultimate success will depend on how ready our HR teams are for the future. With automation gaining momentum, HR needs to lead the way.

This means actively adopting new technologies, preparing people for new roles and ways of working, and establishing new ethical standards for how AI is used in the workplace. The next chapter of how we work is being written right now, and HR has a huge part to play in shaping it.