SEPANG: The Cabinet will receive a detailed report on the artificial intelligence productivity paradox early next month according to Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
He confirmed the Malaysia Productivity Corporation, National Institute of Public Administration, and Digital Ministry are currently refining the study.
“I will be presenting it in detail for the second time,“ he told reporters after officiating the 4th National Governance, Integrity and Anti-Corruption Research Conference.
Shamsul Azri explained that a preliminary report was presented at a Cabinet meeting two weeks after the Prime Minister’s gathering with staff of the Prime Minister’s Department on August 18.
He defined the productivity paradox as situations where heavy spending on AI or digitalisation does not necessarily lead to increased productivity.
“When we move towards AI or digitalisation, we must assess cost-effectiveness,“ he said.
“There comes a point when spending heavily on AI or digitalisation causes productivity to plateau.”
He emphasised the need to ensure that every expenditure on AI and digitalisation delivers high productivity and the best outcomes for the government.
The Prime Minister had previously warned of risks posed by the AI productivity paradox, noting that large-scale AI investments don’t necessarily translate into higher productivity.
Studies have shown that only between three and seven percent of AI use has had a real impact on productivity or workers’ income according to the Prime Minister’s earlier statements. – Bernama