SOEs urged to accelerate AI adoption

KUCHING: Sarawak’s state-owned enterprises (SOEs) must accelerate the adoption of artificial intelligence (AI) to improve efficiency, productivity and services to the people.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said every SOE could and must identify ways to integrate AI into its operations and business.

“AI is not only for technology companies. Every SOE can and must find ways to use AI in its operations and business,” he said when speaking at the Sarawak SOEs Transformation Programme Phase 2 themed A Pledge for Good Governance, High Performance and Value Creation at a hotel here today (Sept 22).

Abang Johari said the Phase 2 assessment found that only 38 per cent of the entities had adopted or were implementing digital and AI initiatives at the time of the evaluation.

He described the figure as insufficient and urged chief executive officers and general managers to examine where AI could reduce costs, improve productivity, strengthen decision-making and enhance public services.

“This is the mindset we need, not waiting for technology to change us, but using technology to change the way we work,” he said.

However, he stressed that technology alone would not transform an organisation without people who possessed the capabilities to use it effectively.

The assessment showed that talent maturity across many entities remained relatively low, averaging only 1.4 on a five-point scale.

Abang Johari said high-performing SOEs could not be built around outdated organisational structures and capabilities that no longer matched the industries in which they operated.

He therefore urged boards and management teams to treat talent development as a strategic investment by developing their employees, attracting expertise and strengthening succession pipelines.

“What capabilities will we need five years from now? Develop your people, attract expertise where necessary, build succession pipelines and create organisations where talented people want to stay and contribute,” he said.