It is becoming clear that artificial intelligence (AI) is a transformative force in the digital economy.
The World Economic Forum's Future of Jobs report highlights that AI and machine learning-related roles are among the fastest growing sector; they're projected to increase by 39 per cent by 2027.
Over the next decade, organisations are expected to shift their approach to talent, IT architecture and governance as AI adoption becomes inevitable.
According to Straits Interactive co-founder Alvin Toh, generative AI is recognised as much more than just ChatGPT or OpenAI.
Enter Agentic AI
Toh said this year, people can anticipate the emergence of Agentic AI, or systems that autonomously perform tasks, adapt to inputs and make decisions within set boundaries without needing continuous human prompts.
He referenced NVIDIA Corp chief executive officer Jensen Huang's CES keynote, where Huang described Agentic AI as one of the most significant developments in enterprise technology.
Huang envisions information technology departments evolving to manage AI agents, similar to how human resources departments manage personnel.
This shift could lead to more efficient automation in customer service, sales support, healthcare and manufacturing.
Impact Of DeepSeek On AI Awareness
A major development that grabbed headlines globally and accelerated AI adoption is the emergence of DeepSeek, which introduced the R1 model, rivalling top AI models from companies like OpenAI, at a lower cost.
Toh said: "DeepSeek has reshaped how businesses perceive AI, making advanced AI tools more accessible across industries.
"Its disruptive pricing model and efficient architecture have sent ripples through the AI market, forcing competitors to reconsider cost structures and accessibility strategies.
"With enhanced reasoning capabilities and increased affordability, businesses that previously hesitated to invest in AI can now explore and integrate generative AI solutions without prohibitive costs."
With higher efficiency and improved contextual reasoning, DeepSeek models reduce operational barriers, enabling faster AI integration across corporate environments.
However, its growth raises critical concerns about data privacy, compliance and ethical AI usage. Toh said: "Organisations must conduct due diligence before integrating DeepSeek solutions, especially given varying data governance standards across jurisdictions."
Risks And Benefits
He said the increasing adoption of Generative AI and AI agents in the workplace has led organisations to a critical decision.
"Should they build AI capabilities in-house or buy AI tools from vendors? This decision should be guided by strategic factors that ensure sustainable AI integration."
While many use the words interchangeably, there is a difference between these terms.
"Competency refers to possessing skills and knowledge, whereas capability means applying these resources through structured processes and adaptability.
"Organisations often mistake acquiring AI tools as equivalent to AI capability.
"However, without redesigning workflows, training personnel and fostering adaptability, AI tools alone will not deliver the expected benefits."
Using AI Effectively
He said capability can be broken down into five elements
1. Skills training in AI;
2. Equipping teams with knowledge of AI governance;
3. Investing in AI platforms that align with business goals;
4. Redesigning workflows and processes to integrate AI into operations; and,
5. Fostering a culture that embraces AI-driven change and continuous innovation.
"Redesigning processes for implementation of AI requires more than just new software. It demands a fundamental redesign of workflows to optimise AI integration across business functions. AI governance must be embedded in compliance, legal, HR and marketing to ensure seamless adoption and manage and mitigate risks. As AI-driven processes evolve, businesses must refine their workflow to stay compliant with emerging regulatory frameworks, such as the European Union AI Act, Asean AI Governance Guide, and South Korea's AI Basic Act."
He said building AI capabilities requires sector-specific strategies to ensure effective adoption.
"In the legal sector, law firms leveraging AI for contract analysis must establish rigorous review processes to validate AI-generated outputs for accuracy and compliance. Similarly, in healthcare, medical institutions implementing AI-powered diagnostic tools must train professionals on AI usage while redesigning patient care processes to integrate AI-driven insights. For enterprise productivity, businesses deploying AI assistants for workflow automation need to equip employees with engineering skills, enabling them to maximise efficiency and leverage AI's potential."
AI Transformation
To navigate AI transformation, businesses must cultivate flexibility in their operations. Toh said: "As AI continues to evolve at a rapid pace, organisations must commit to workforce upskilling to keep employees adept at leveraging new advancements
"At the same time, shifting regulatory landscapes require updates to AI governance policies, ensuring compliance with emerging frameworks."
This article was first published on March 26, 2025 in New Straits Times.
