Malaysia Oversight

Anwar flags risks of ‘AI Productivity Paradox’ in Malaysia’s digital drive

By MalayMail in August 18, 2025 – Reading time 1 minute
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, Aug 18 — Prime Minister Datuk Seri Ibrahim today called on government machinery to remain vigilant against the “AI Productivity Paradox” in the implementation of the country’s digital transformation agenda.

He said the paradox refers to situations where large investments in artificial intelligence (AI) and digitalisation may not necessarily translate into higher productivity.

“I hope this matter is given special attention by the Digital Ministry, the Communications Ministry and department heads.

“We don’t want to fall into what is called ‘trough of disillusionment’ due to assumptions made on massive allocations for digital transformation and AI programmes, which will reach tens of billions of ringgit over the next five years,” he said.

The “trough of disillusionment” refers to a stage in the adoption cycle of new technology when early high expectations are not met, leading to disappointment, doubts and declining confidence before the technology matures.

, who is also finance minister, urged the Digital Ministry and Communications Ministry to look into data governance as well as integration, IT and AI challenges with a focus on outcomes.

He said this when delivering his address at the Prime Minister’s Monthly Assembly with staff of the Prime Minister’s Department (JPM) here today. — Bernama



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