Gen AI in HR: CelcomDigi and UMW Corporation's approach to bridging skills gaps in AI

Sarah Gideon speaks to CelcomDigi's Azmi Ujang and UMW Corporation's Zailani Ali to discuss the challenges they encounter when implementing AI, and how they are equipping and supporting their workforce to thrive in an AI-driven environment.

In recent years, Malaysia has embraced generative AI (gen AI) as a transformative force within its evolving technological landscape. With the government's strategic focus on becoming a digital nation — be it through the Malaysia Economy Digital Blueprint or the Malaysia Artificial Intelligence Roadmap 2021-2025, gen AI has quickly become a key driver in shaping the nation's economic and workforce future.

In fact, in his Budget 2025 statement, Prime Minister and Minister of Finance Anwar Ibrahim shared a series of moves the country will be making to accelerate its transformation in the AI space. Some examples:

• To provide high-income jobs in the AI field, special tax deductions will be given to IPTAs that develop new courses such as digital technology, AI, robotics, IoT, data science, FinTech and sustainable technology.
• AI-related education will be extended to all research universities, and RM50mn has been set aside for this purpose. Individual tax relief on net savings in the National Education Savings Scheme has also been extended for another three years.

From enhancing productivity to driving innovation across various sectors, gen AI presents significant growth opportunities. However, as this advanced technology becomes more integrated into Malaysian industries, it also brings challenges that must be carefully navigated.

To understand AI's impact on the workplace and the HR leader's plate, it is important to examine the key challenges the country is facing in navigating the digital era: the skills gap and workforce readiness, balancing AI adoption with employee morale, economic advantages, infrastructure gaps, and business innovation.

This first part of our two-part series will focus on two critical areas — bridging the skills gap and preparing the workforce, and balancing AI integration with morale. By starting with the human element, we set the stage for a more holistic understanding of AI’s broader implications. 

To explore this, Sarah Gideon speaks to leaders from CelcomDigi and UMW Corporation to discuss the challenges they encounter when implementing AI, and how they are equipping and supporting their workforce to thrive in an AI-driven environment.

Overview of AI's impact on HR in Malaysia

HR is no doubt a key area where AI is making a significant impact. In a 2023 survey, 99% of Malaysian HR leaders report using AI in their systems, with 82% of the respondents agreeing that it makes their work easier. 

Notably, Malaysia leads in using AI to monitor and assess employee performance (46%), surpassing other markets such as Singapore, the UK, Australia, and New Zealand (31-34%). In addition, performance management is the top priority for Malaysian HR leaders, with 36% expecting AI to have the greatest impact in this area, followed by training and development (33%).  

While the above is so, 55% of respondents have expressed concerns about its ethical use, and 48% worry about the potential risk of job loss. Other concerns among leaders and employees in general include responsible use of AI, and the issue of potential bias.

Skills gap and workforce readiness  

The significant skills gap in managing and utilising gen AI, with only 22% of employers planning to provide training in AI-related skills, is leaving much of the workforce unprepared for the technological shift. As AI continues to reshape industries, the demand for reskilling and upskilling has surged, yet Malaysia faces challenges in equipping its talent pool with the technical expertise and soft skills needed to thrive in an AI-driven environment.  

This gap could slow down AI adoption, lead to inefficiencies, and reduce Malaysia’s global competitiveness as businesses struggle to fully leverage AI’s potential, hindering growth.  

For HR professionals, the lack of AI-related expertise presents additional challenges in workforce management, as it limits their ability to harness AI’s capabilities for improved hiring, talent management, and decision-making processes, resulting in inefficiencies and delayed adoption of AI tools that could otherwise enhance organisational effectiveness. 

While organisations are taking strides in integrating gen AI into the business workforce, addressing the skills gap remains a crucial challenge. For Azmi Ujang, Chief Human Resources Officer, CelcomDigi, the biggest challenge in upskilling employees on gen AI lies in the learning curve — moving from initial awareness to adoption and, ultimately, full buy-in.  

The focus extends beyond simply introducing tools such as Microsoft Copilot or ChatGPT, emphasising how AI enhances productivity, drives innovation, and delivers real business impact. 

"To address this, we’ve implemented purposeful programmes, guiding employees through practical applications, and demonstrating clear outcomes.  

"This fosters a culture of continuous learning and AI adoption, accelerating our journey into an AI-driven organisation," he adds. 

With only a small percentage of employers currently offering AI-related training, a critical question emerges: How can organisations ensure their workforce is equipped with the necessary skills to thrive in an AI-driven environment? Azmi notes: "We recognise that employees learn and adopt technologies in different ways. As such, we’ve implemented a comprehensive strategy to integrate AI throughout our organisation through our AIDA (AI and Data Acceleration) programme."

Beyond providing learning tools and training, the AIDA team collaborates with various divisions to trial and implement AI solutions, having successfully automated over 200 business and IT operations processes to date.

"Through these efforts, we foster a culture of continuous learning and innovation, where our workforce becomes increasingly adept at leveraging AI technologies to drive growth and efficiency within our organisation – automating repetitive tasks, allowing employees to focus on more strategic and creative aspects of work."

Zailani Ali, Chief Human Resources Officer, UMW Corporation, echoes Azmi's sentiments, saying that HR leaders must proactively identify future skills and competencies needed and prepare the workforce through upskilling and reskilling, ensuring employees work alongside AI rather than being displaced by it.  

"In Malaysia, 63% of employees are optimistic about the impact of gen AI on their work, but many underestimate the need for upskilling and reskilling," Zailani highlights, adding that HR leaders must address this gap through comprehensive learning and development programmes that equip employees
with the necessary skills to thrive in an AI-driven environment. These training programmes must cover both technical skills (e.g., data analysis and AI proficiency) and soft skills (e.g., critical thinking, creativity, adaptability), which he affirms are "which are increasingly valuable in the age of AI."

As Zailani shares further, at UMW, this culture of continuous learning is driven by encouraging employees to embrace lifelong learning to remain agile and adaptable in the face of technological change. "We provide our employees with access to thousands of digital learning at their own pace and convenience as we empower them to take charge of their professional growth.

"This not only enhances individual career prospects but also contributes to the overall competitiveness of the organisation and the broader economy."

Balancing AI adoption with workforce morale    

The rise of AI and its ability to automate routine tasks has raised concerns about job displacement, particularly in sectors reliant on repetitive work. Without proper reskilling, many workers risk being replaced, which could lead to higher unemployment and underemployment, further widening economic inequalities.  

To balance AI adoption with workforce morale, HR must therefore play a crucial role in leading reskilling and upskilling efforts. By ensuring employees remain competitive in an AI-driven market, HR can alleviate fears of job loss, foster a positive workplace culture, and maintain workforce relevance amid technological advancements. However, many organisations hesitate to adopt AI due to concerns about:

• high costs,  
• lack of the necessary skills, and  
• uncertainty about which platforms to choose.  

Addressing these barriers effectively is key to successful AI integration and maintaining a motivated, adaptable workforce. 

EY’s 2023 Work Reimagined Survey shows that, while employers are optimistic about AI’s potential to boost flexibility and productivity, employees often feel uncertain about AI’s impact on their roles.

In fact, as previous conversations with leaders have highlighted, there is apprehension that AI will lead to job displacement. However, it's important to clarify that AI is designed to replace tasks, not people. Leaders should therefore focus on effective communication and guide employees through digital transformation, emphasising that AI aims to enhance, not replace, human roles. 

As a session at HRO's Talent Tech Asia Summit 2024 affirmed: AI itself won’t take away jobs, but rather, those equipped with AI skills will replace those without them.  

Moving forward

As the saying goes, "With every wave, you either ride it, or it will overwhelm you."  

If leaders can embrace this mindset, gen AI can significantly enhance various HR functions. From elevating the employee experience to engaging external candidates, leaders can leverage its value several key areas: 

• Recruitment and accelerating hiring: Creating targeted job description, improving the resume selection process. 
• Creating personalised and targeted communications: Engaging with candidates and creating content for employer branding. 
• Empowering internal mobility: Matching employees with potential job openings through various data points. 
• Enhancing the employee experience: Picking up data points across different channels to better assess employee feedback. 

As we near the end of the discussion, Zailani aptly concludes: "As Malaysian companies navigate the complexities of generative AI adoption, the role of HR
leaders has never been more critical as they continue treating AI as a tool for positive transformation rather than a source of disruption.

"The path forward requires HR leaders to be agile, forward-thinking, and deeply committed to their organisations' long-term success. By embracing these challenges, they can help shape a future where AI and human potential are seamlessly integrated, driving sustainable growth and innovation in the Malaysian business landscape."

Finally, beyond the human aspect, the economic and strategic challenges of AI integration must also be addressed for businesses to fully capitalise on its potential. Stay tuned for the next part of this series, where together, we will delve into the economic implications and business solutions that organisations can implement to combat these challenges and drive sustainable growth in an AI-driven landscape. 

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READ MORE: New tech initiative by Microsoft & MITI aims to skill 300,000 Malaysians over next 4 years 

Lead image / Human Resources Online