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58% of Malaysian HR Leaders Are Concerned About the Ethical Use of AI, Says Employment Hero


Human resources (HR) tech platform Employment Hero recently released the report “The SuperHuman: AI adoption, shaping the future of HR. The report revealed 55% of Malaysian HR leaders are concerned about the ethical use of artificial intelligence (AI) in their HR practices. Despite this, 99% of Malaysian HR leaders claim their HR systems already leverage AI, and 82% agree AI can save them time and facilitate their job.

According to the report, 71% of Malaysian HR leaders express excitement about the transformative potential of AI in redefining the role of HR, with the top benefits including increased speed and efficiency (38%), improved employee performance and productivity (36%), and enhanced HR analytics (30%). The areas they expect to be most affected by AI advancements are performance management, (36%), training and development (33%), and recruitment (32%).

Some Valid Concerns

But when it comes to the top concerns around using AI in HR, employee privacy (42%) was the most cited, followed by security and storage (37%), and the lack of trust and transparency (26%). Respondents also seemed cautious about further experimental development of AI in the HR space, with 50% of HR leaders agreeing that ambitious AI developments should be paused.

“While AI serves as an assistant in HR processes, it by no means replaces the human elements of people management. Rather than automating every process, AI should be used to streamline the manual, tedious aspects of HR processing. With more time back in the day, business can then focus on the more people-centric aspects of the job, and on other revenue driving initiatives,” said Kevin Fitzgerald, Managing Director, Asia, at Employment Hero.

“The AI revolution will catch up with all business functions, and it’s up to employers and HR leaders to reap its benefits while mitigating threats and concerns. In order to do this successfully, employers must prioritise education and facilitate learning within their workforce to ensure ethical and successful use. Used successfully, AI can support businesses in many ways, and most importantly, allow employees to spend more time on tasks that still require a human touch – such as people management, recruitment, and company culture —and profitable activities that benefit the bottom line,” Fitzgerald added.