Batman - Asia School of Business

We are super proud of our Deputy CEO, Professor Joseph Cherian, participating in the inaugural roundtable hosted by Singapore’s Minister for Manpower, Dr Tan See Leng, and the Singapore CPF Board.

This international dialogue brought together global pension experts to exchange best practices and insights on shaping sustainable, future-ready retirement systems.

Professor Cherian’s contributions reflect the School’s commitment to thought leadership and our continued efforts to enhance financial resilience and long-term well-being for all.

Originally posted on LinkedIn

At 14, island boy Eizaz Azhar, made a life-changing decision—he walked away from his school with no formal qualifications. What seemed like an unconventional and risky move at the time laid the foundation for an extraordinary journey, culminating in his acceptance into the prestigious Asia School of Business (ASB) MBA program, a collaboration with MIT Sloan School of Management.

Eizaz’s story is a testament to the power of determination, resilience, and of self-belief. His remarkable life thus far is about how one young man challenged societal norms and redefined the trajectory of success for those who dare to think differently.

But it definitely needed all the elements in place to make it happen. Enter ASB, MIT, and a singularly independent thinker into the mix.

An Unconventional Start

Growing up on the beautiful island of Langkawi in the 1980s, Eizaz’s childhood was far from ordinary. Books became his refuge and his gateway to the world. “We didn’t have much, but we had encyclopedias,” he recalls. “Those books were my company, and even today, much of what I know comes from what I learned as a kid.” Encouraged by his tech-savvy father, who taught him DOS at age five, Eizaz developed a passion for technology and curiosity that shaped his entrepreneurial spirit.

Eizaz’s passion for jazz also played a significant role in shaping his identity. He developed a love for the genre during his teenage years. As a saxophonist, he often immersed himself in the improvisational rhythms that echoed his own unconventional journey. “Jazz taught me to think on my feet and embrace unpredictability,” he shares. “It’s a lot like life—you have to be ready to adapt, but there’s always room for creativity.”

About five years after he left the Malaysian school system, at 19, with just RM4,000 in hand, Eizaz started a music studio. He bootstrapped his way to success-repurposing discarded furniture at dumpsites to wiring his own lights, he turned a modest space into a thriving venture that eventually expanded into a music retail and wholesale business. However, Eizaz’s dream didn’t stop there. “I wanted to prove that my business acumen held real value,” he says. “I wanted to validate it with an MBA.”

The Road to ASB

In 2015, Eizaz discovered ASB while scrolling through Facebook. The school’s unconventional candidate track caught his eye. “They were looking for people who had lived extraordinary lives,” he says. “I thought, ‘That’s me!’” Despite lacking formal qualifications—his last academic credential was a UPSR exam—Eizaz decided to apply.

The journey was anything but easy. To meet ASB’s stringent entrance requirements, he had to master calculus, statistics, and economics—subjects he had never encountered. With the help of a friend and about four months of grueling six-hour study sessions, he passed the entrance exam. “I had no idea what calculus was,” he admits. “But I refused to give up. I knew this was my shot.”

Fighting the System

However, another obstacle loomed: government accreditation. Without a diploma or degree, he needed approval from the Malaysian Qualifications Agency (MQA) under the Accredited Prior Experiential Learning (APEL) program. What followed was a bureaucratic maze that tested his resolve.

Despite initial rejections, he leveraged his network and the support of mentors like Toh Puan Dr Aishah Ong and Dato’ Idris Abdullah. Their encouragement kept him going, and eventually, he secured the necessary accreditation. “I fought not just for myself but for everyone who might come after me,” he says. “I wanted to prove that if you have the ability, you deserve the opportunity.”

Transformative Years at ASB

In 2016, Eizaz joined ASB’s inaugural MBA cohort. He likened the experience to “a boy in the jungle with a machete, hacking my way through challenges,” – an intense learning curve that provided him with essential tools for business leadership. “ASB structured my thinking, refined my decision-making, and expanded my strategic capabilities. Now, I have an arsenal to handle any situation.”

Beyond classroom learning, ASB exposed him to high-stakes business environments. Eizaz credits the program with teaching him to think rigorously and strategically. From mastering Excel to building complex financial models, the program equipped him with skills he never imagined he’d acquire. “Before ASB, I thought Excel was just Word with tables,” he jokes. “By the end, I was automating financial projections,” he quips.

The experience wasn’t just academic. Eizaz found a community of like-minded driven individuals who pushed him to grow. “ASB is the only alma mater I’ve ever known,” he says. “They gave me a chance when no one else would, and I’ll forever be grateful .”

Beyond the MBA

Post-MBA, Eizaz’s career soared, leveraging his skills to drive impact across industries. As General Manager, Head of Corporate Strategy of the Halal Industry Development Corporation, he applied his ASB-honed skills to navigate the complexities of the halal industry. During the COVID-19 pandemic, he pivoted to supply chain management, leading efforts in selling test kits and personal protective equipment.

Today, Eizaz is a digital consultant for a listed company, spearheading the development of AI data centers in Malaysia—a multimillion-ringgit venture. His career trajectory shows how resilience, adaptability, strategic learning, and execution-focus thinking can propel individuals from unconventional background to leadership roles.

Redefining Success for Future Entrepreneurs

More than just a tale of personal success, Eizaz’s journey challenges traditional notions of success. He serves as an example to aspiring entrepreneurs and professionals seeking to carve their own path. His mission is clear: to inspire others to challenge the status quo, believe in their own potential, and seize the opportunities before them. “I want people to know that there are many ways to achieve your dreams. It’s not about where you start – it’s about how effectively you navigate challenges, leverage opportunities and continuously upskill,” he states.

For business leaders and aspiring entrepreneurs alike, Eizaz Azhar’s journey serves as both inspirations and a strategic blueprint. Proving that resilience, adaptability, and bold decision-making are the cornerstones of impactful leadership.

By Joseph Cherian

So why should Malaysia’s tertiary education system be any different from the more developed world’s? It, too, should be embedded with flexibility. Based on the examples provided below, without delving into financial mathematics, one’s educational experience and value would be enhanced far more than a system without such flexibility. In economics, we refer to this as being on the Pareto efficiency frontier, where resources and opportunities are allocated most efficiently.

Flexibility holds intrinsic value in various aspects of life — careers, investment plans and policymaking. A key reason for this is the uncertainty that surrounds future outcomes. Whether it’s predicting the trajectory of financial markets, the global economy, the exchange rate of the Malaysian ringgit, or even getting into a car accident, our ability to foresee the future is inherently limited.

This unpredictability is evident in the changing demands of the workforce. According to the World Economic Forum, 44% of workers’ core skills will need to change by 2027 due to advances in technology and automation. Meanwhile, the global e-learning market is projected to grow to US$842.64 billion by 2030, highlighting the increasing reliance on flexible, technology-enabled education solutions.

Consider the current unpredictability of global events and their implications for education. In today’s rapidly changing world, traditional systems may no longer suffice. For instance, educational models that rigidly define paths without accommodating individual needs or interests risk leaving many behind.

This is where the concept of flexibility becomes critical in education. Allowing learners to tailor their journeys based on personal or professional goals, or even unforeseen circumstances, enhances the overall value of education. Gap years, modular learning, and asynchronous courses are examples of how education systems can adapt to accommodate diverse needs.

Globally, there is growing recognition of the need for adaptive learning structures. Prestigious institutions have adopted models that allow students to pause their studies, explore interdisciplinary fields, or even take courses remotely. These practices not only enrich the individual learning experience but also contribute to society by fostering creativity, resilience and adaptability among learners.

Take, for example, the emergence of digital and online learning in the last decade. Universities worldwide such as MIT, Cornell University and Yale University have embraced this shift, offering remote learners access to high-quality courses and programs. From engineering in Patagonia to business analytics in Kuala Lumpur, technology has bridged the gap between learners and education, bringing opportunities that were once out of reach.

In Southeast Asia, some educational institutions are adopting flexible upskilling approaches, allowing learners to earn course credits at their own pace and transition into full-time or part-time degree programmes if they choose to pursue a postgraduate degree.

The economic value of flexibility in education extends beyond individual growth. It benefits employers by creating a more adaptable workforce and society by encouraging lifelong learning. According to LinkedIn’s Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development — a testament to the importance of education adapts to evolving career trajectories.

As education systems evolve, the emphasis should remain on quality and accessibility. Agile learning methods, stackable courses, and modular degree options are examples of how institutions can make education more inclusive and relevant. These innovations represent a step toward a future where learning is not just a phase of life but a continuous, adaptive journey.

Educational institutions worldwide are already setting the stage for this transformation. By embracing flexibility, we can create an ecosystem that supports learners at every stage of their journey — and, in doing so, prepare for a future where uncertainty is the only certainty.

The author is Asia School of Business Deputy Chief Executive Officer

Originally published by Business Today.

By Joseph Cherian, Deputy CEO of Asia School of Business

In today’s dynamic economic landscape, small and medium-sized enterprises (SMEs) play a pivotal role in many nations’ economies. They serve as the engines of growth and innovation. As we navigate unprecedented geopolitical and supply chain challenges, such as those arising from the recent global pandemic, it has become increasingly evident that SMEs require robust financial support systems to thrive. With SMEs contributing significantly to the national economic fabric, fostering their resilience demands a coordinated and comprehensive approach.

Singapore provides a good case study with its all-of-government approach to supporting SMEs, epitomized by institutions like Enterprise Singapore (ESG) and the Economic Development Board (EDB). ESG’s multifaceted support, ranging from development grants, upskilling and talent development, productivity enhancements to international networking, sales, and marketing, illustrates the comprehensive manner of assistance provided to its SMEs in order for them to thrive. Moreover, initiatives like EDB’s venture fund (EDBI), which invests in promising SMEs in technology and select high growth industries, demonstrate the government’s commitment to fostering innovation and growth within the SME ecosystem.

During times of crisis, such as the recent global pandemic, the coordinated efforts of these government agencies become paramount. ESG’s role in channeling subsidized bank loans to vetted SMEs showcases the importance of a streamlined and efficient support system. Fragmented or siloed approaches risk diluting the impact of assistance, which may leave SMEs vulnerable to unanticipated economic shocks.

Drawing parallels, the U.S. Small Business Administration (SBA) also offers a plethora of support mechanisms for American SMEs, underscoring the importance of a diverse toolkit. From concessionary loans to counseling, training, upskilling, and networking sessions, the SBA takes a multifaceted approach necessary for SME resilience, especially for minority and women-owned businesses.

Private initiatives like Alignable in the U.S., which fosters online networking among SMEs and functions like a conjoined LinkedIn and Facebook for SMEs, demonstrate the potential of leveraging technology and business-focused social media platforms to enhance collaboration and resource-sharing within the SME community, especially in areas such as information-sharing, continuing education, and thought leadership. Establishing a similar platform in Malaysia can facilitate knowledge exchange and business referrals, fostering a supportive ecosystem for SME growth.

Moreover, capital market solutions, as exemplified by the Securities Commission Malaysia’s five-year roadmap for SMEs, offer these enterprises access to diverse funding mechanisms. These solutions not only stimulate economic growth but also create employment opportunities and enhance market liquidity.

Historically, many SMEs do not have access to local capital markets. They usually rely on government support, concessionary loans and grants, bank financing, or are simply owner-financed. Most government support to SMEs during crises is in the form of loans and debt channeled through the private sector at concessional rates, which eventually have to be repaid.

To mitigate negative economic and social consequences, to save organizational capital, especially organization-specific human capital, alternative financing schemes are necessary. Capital market solutions, particularly those involving tradeable funding vehicles, that partner with both the public and private sectors (PPP) to fund large-scale infrastructure and green projects around the world, and which include a credit enhancement component, are especially useful and illustrative in the current context. This type of financing mechanism is referred to as “Blended Finance.”

The Managed Co-Lending Portfolio Program (MCPP) by the International Finance Corporation (IFC), the World Bank’s investment arm, is a good vehicle structure to replicate in Malaysia for public-private financing of its SMEs. The Managed Co-Lending Portfolio Program (MCPP) is a syndication lending structure with credit enhancement, specifically designed for infrastructure projects. It allows the IFC to co-invest in a diversified portfolio of loans for due-diligence projects, attracting institutional investors from both the public and private sectors. The Swedish government or the IFC de-risks the MCPP portfolio through a first-loss guarantee, a.k.a. credit enhancement. The IFC recently announced the launch of its MCPP One Planet (climate change) facility, which comprises a portfolio of Paris Agreement-aligned emerging market senior loans.

A corresponding example is the IFC/Amundi Green Cornerstone Bond Fund, which channels capital from institutional investors into anchor investments in sustainable bond issuances from corporates and financials in developing countries. Fund proceeds are primarily used to buy green bonds issued by banks in developing countries. Blended Finance in this case helps unlock private capital with the aid of public or MDB capital with the same first-loss warranties via equity participation.

Equity investment can effectively leverage public money. Case in point is the IFC-Amundi structured fund that attracted 16 times as much private investment into the funding vehicle! Good due diligence by a trusted institution coupled with proper credit enhancement from a long-lived sovereign authority could encourage asset owners sitting on trillions of dollars in assets to participate in sustainable finance-related investment vehicles. This is due to the first loss warranties available, which makes the structure akin to investment grade.

Malaysia can draw on its strengths and comparative advantage by considering utilizing credit-enhanced Islamic Blended Finance vehicles for innovative SME financing, which by construction are ESG compliant.

Quasi-equity financing can also emerge as a promising avenue, especially during times of crisis, by offering SMEs an alternative funding mechanism to traditional debt financing. By providing first-loss protection for lenders and enabling flexible repayment structures, quasi-equity schemes mitigate financial risks for SMEs while promoting sustainable growth.

My essay on quasi-equity financing, combined with a simple financial economic model, which first appeared in an article I wrote for the Nomura Journal of Asian Capital Markets in Fall 2021, illustrates that in equilibrium, quasi-equity combined with concessional loans economically dominates a pure concessional loan scheme2.

All the innovative financing schemes for SMEs mentioned here are Pareto-optimal — i.e., at least one party is better off, with no one worse off. These structures:

Free up the bank’s capital for further lending (asset recycling),
Disintermediate and mitigate the risks that risk-averse banks face when approving risk-taking SME entrepreneurs’ loans (risk management),
Improve the credit quality of the funding portfolios such that asset owners like pension funds can now invest in them (credit enhancement).

In conclusion, fostering SME resilience demands a holistic and coordinated approach that encompasses financial assistance, technological innovation, and regulatory support. By emulating successful models and embracing innovative financing mechanisms, we can build a resilient ecosystem that empowers SMEs to thrive in an ever-evolving global economy.

As we look towards the future, it is imperative that the government, financial institutions, and industry stakeholders collaborate to create an enabling environment where SMEs can flourish. By prioritizing SME financial support and fostering a robust, all-encompassing, technology-driven ecosystem of innovation and resilience, Malaysia can pave the way for sustained economic prosperity and inclusive growth.

Originally published by The Exchange Asia.

By Mustabeen Ul Bari and Elsa Satkunasingam*

Study of Malaysian market suggests green stocks outperform in the short term to ESG regulatory changes

Interest in businesses that prioritise governance, environmental, social responsibility and governance or ESG has surged in recent years, driven primarily by consumer demand, regulations, and unprecedented climate shocks. From an investor perspective, there is an expectation that businesses practising ESG would be more prepared to manage climate risks, scarcity of resources, and consumer demand for more eco-friendly products and services.

There is evidence that in the US, investor support for green stocks over brown has surged, driven not by anticipation of higher returns but by increasing concern about climate change.

Originally published by Asia Asset Management.

*Mustabeen Ul Bari is a graduate of the Master of Business Administration programme at the Asia School of Business (ASB) in Kuala Lumpur. Elsa Satkunasingam is a director and senior lecturer in executive education at the school. The authors would like to express their appreciation to Yasmin Ahmad of ASB Executive Education for her research assistance.

KUALA LUMPUR: Kesan kecerdasan buatan (AI) terhadap pasaran kerja adalah nyata dengan kesannya terhadap pemberhentian kerja dalam segmen tertentu, kata Ketua Pegawai Eksekutif, Presiden dan Dekan Asia School of Business, Prof Sanjay Sarma.

Beliau berkata, ada syarikat teknologi telah membangunkan pembantu AI yang boleh menggantikan pekerjaan di pusat panggilan.

Katanya, teknologi itu boleh beroperasi di 23 pasaran dengan berkeupayaan dikendalikan dalam 35 bahasa, 24 jam sehari, tujuh hari seminggu.

Malah, jelasnya, teknologi AI itu juga berjaya melayani pelanggan dengan lebih pantas, dengan masa penyelesaian menurun kepada dua minit daripada 11 sebelumnya dan terdapat juga penurunan sebanyak 25 peratus dalam pertanyaan berulang.

“Ia menggantikan kerja 700 ejen sepenuh masa,” katanya pada sesi plenari bertajuk ‘Data dan Kecerdasan Buatan: Memperkasa Masa Depan’ di sini, hari ini.

Sidang plenari itu sempena Persidangan Statistik Malaysia (MyStats) ke-11 2024 yang bertemakan ‘Data dan Kecerdasan Buatan: Memperkasa Masa Depan’ anjuran secara bersama antara Jabatan Perangkaan Malaysia, Bank Negara Malaysia dan Institut Statistik Malaysia.

Sanjay berkata, syarikat AI itu dianggarkan menjana keuntungan sehingga AS$40 juta dalam tempoh 20 tahun.

Justeru, katanya, kesan AI kepada pekerjaan adalah nyata.

“Kita berada di ambang sesuatu yang luar biasa, menakutkan, menggerunkan dan menakjubkan,” katanya.

Mengenai kesan kepada pasaran kerja di Malaysia, Sanjay berkata, impak AI ke atas pasaran kerja Malaysia akan sangat mengejutkan.

“Saya fikir Malaysia mempunyai, mungkin, lima tahun (sebelum AI memberi kesan kepada pekerjaan di negara ini),” katanya.

Lebih 1,000 peserta menghadiri MyStats kali ke-11 itu yang menjadi platform untuk ahli statistik, penyelidik, ahli ekonomi, pembuat dasar, ahli akademik untuk mengetengahkan idea baharu dan meningkatkan pemahaman bersama dalam bidang statistik, selain mewujudkan jalinan kerjasama dan rangkaian yang lebih baik.

Ia juga dapat meningkatkan lagi keberkesanan analisis dan penggubalan dasar kerajaan yang dibuat berdasarkan fakta.

Originally published by Berita Harian.

KUALA LUMPUR: The impact of artificial intelligence on the job market is real, the CEO of a business school has warned, citing the layoffs it created in the Philippines.

Sanjay Sarma, of Asia School of Business, said a third of the Philippines’s revenue comes from call centres, which businesses outsource to local residents.

He also said that recently, a Swedish fintech company developed an AI assistant that could operate in 23 markets, 24/7, in 35 languages.

The AI, which handled two-thirds of its customer service, managed to attend to customers faster, with the resolution time dropping to two minutes from the previous 11. There was also a 25% drop in repeat inquiries, he said.

It replaced the work of 700 full-time agents, he said at the 11th Malaysia Statistics Conference here today.

Sanjay said the company’s AI is estimated to drive profit up to US$40 million in 20 years.

The impact on jobs is real. We are on the threshold of something incredible, scary, terrifying, and wonderful, he said.

He said the impact AI would have on the Malaysian job market would be staggering.

I think Malaysia has, maybe, five years (before AI impacts jobs in the country), he said.

Originally published by Free Malaysia Today.

KUALA LUMPUR – Lebih 1,000 peserta terdiri daripada ahli statistik, ahli akademik dan penyelidik dari pelbagai agensi secara fizikal serta dalam talian menyertai Persidangan Statistik Malaysia (MyStats) ke-11 2024 di Sasana Kijang, Bank Negara Malaysia di sini pada Khamis.

Timbalan Menteri Ekonomi, Datuk Hanifah Hajar Taib berkata, persidangan ini merupakan antara platform yang membolehkan para perangkawan, penyelidik, ahli akademik dan pengguna data untuk memahami dan membincangkan hal berkaitan pengurusan data dan sosio ekonomi semasa di samping perkembangan teknologi yang semakin maju pada hari ini.

“Saya berkeyakinan bahawa melalui kertas pembentangan MyStats pada hari ini, kita dapat menambah input-input yang signifikan bagi memperkukuh proses asimilasi kecerdasan buatan di negara kita.

“Dengan menggunakan data yang kaya dan analitik mendalam, kita dapat membuat keputusan lebih baik, meningkatkan kecekapan dan menginovasi dalam pelbagai bidang, yang semuanya membawa kepada peningkatan kualiti hidup dan pembangunan berterusan,” ujarnya.

Beliau berkata demikian ketika menyampaikan ucapan perasmian pada persidangan tersebut dianjurkan Jabatan Perangkaan Malaysia, Bank Negara Malaysia dan Institut Statistik Malaysia dengan tema “Data dan Kecerdasan Buatan: Memperkasa Masa Depan” di sini pada Khamis.

Hadir sama, Ketua Perangkawan Malaysia, Datuk Seri Dr Mohd Uzir Mahidin dan Timbalan Gabenor Bank Negara Malaysia, Datuk Marzunisham Omar.

Sementara itu, menurut Mohd Uzir, tema persidangan kali ini mencerminkan peranan yang semakin meningkat dalam menggabungkan teknologi dan data untuk mencipta inovasi serta meningkatkan keberkesanan dalam pelbagai sektor di negara kita.

Jelasnya, ia bertujuan menyediakan platform untuk ahli statistik, penyelidik, ahli ekonomi, pembuat dasar, ahli akademik untuk mengetengahkan idea baharu dan meningkatkan pemahaman bersama dalam bidang statistik, selain mewujudkan jalinan kerjasama dan rangkaian yang lebih baik.

“Ini dapat meningkatkan lagi keberkesanan analisis dan penggubalan dasar kerajaan yang dibuat berdasarkan fakta.

“MyStats ialah platform untuk mengumpulkan ahli statistik, pembuat dasar dan pengamal statistik terkenal yang memberikan pelbagai manfaat kepada komuniti statistik,” ujarnya pada persidangan berkenaan.

Terdahulu, persidangan bermula dengan sesi ucap tama yang membincangkan dengan lebih lanjut berkenaan tema persidangan disampaikan Ketua Pegawai Eksekutif juga merupakan Presiden Asia School of Business, Profesor Sanjay Sarma.

Persidangan kemudiannya diteruskan dengan dua sesi forum menghuraikan perihal gaji progresif dengan membincangkan pandangan majikan dan penyelidik berkaitan pelaksanaan gaji progresif dan komitmen kerajaan bagi mereformasi pasaran buruh dengan matlamat untuk meningkatkan pendapatan pekerja selari dengan peningkatan produktiviti.

Pengenalan dasar baharu ini akan menjadi pelengkap kepada inisiatif gaji sedia ada iaitu perintah gaji minimum dan sistem upah yang dikaitkan dengan produktiviti (Productivity Linked-Wage System – PLWS).

Forum kedua adalah mengenai kecerdasan buatan (Al) dan dilema kehilangan pekerjaan bagi membincangkan berkenaan kecerdasan buatan (Al) yang telah membawa perubahan besar dalam era Revolusi Industri 4.0 (IR 4.0).

Selain itu, persidangan ini turut mengiktiraf sumbangan pengamal statistik melalui anugerah “Mystats The Best Young Statistician Presenter”, “The Best Oral Presenter” dan “The Best Poster Presenter” sebagai penghargaan dalam mengiktiraf bakat mereka dari segi penyelidikan dan penghasilan statistik berimpak tinggi.

Sebelum ini, Jabatan Perangkaan Malaysia (DOSM) telah melancarkan OpenDOSM NextGen sebagai medium menyediakan katalog data dan visualisasi bagi memudahkan pengguna menganalisis pelbagal data, OpenDOSM NextGen adalah platform perkongsian data sumber terbuka dan boleh diakses melalui portal https://open.dosm.gov.my.

Dalam masa sama, DOSM sedang menjalankan banci pertanian dan juga survei pendapatan dan perbelanjaan (HIES) POSM juga akan menyambut Hari Statistik Negara pada bulan hadapan dan Sambutan Jubli Intan Ke-75 Tahun DOSM yang akan berlangsung di Pulau Pinang November ini.

Originally published by Sinar Harian.

AI continues to challenge traditional notions about productivity and personal competence

IN THE ever-evolving landscape of technology, the emergence of artificial intelligence (AI) has heralded a significant paradigm shift in how we live, work and play.

There is no contesting that AI will permeate into more aspects of our lives, bringing along new experiences and opportunities.

Along with the tidal wave of change that AI brings, it continues to challenge traditional notions about productivity and personal competence and affects how we perceive and engage with work.

Unlike previous technological advancements like computers, mobile phones or other hardware and machinery, AI tools not only assist but also execute tasks for humans, fundamentally altering the dynamics of work engagement and mastery experiences.

The benefits gained from having AI take over tasks previously performed by humans are easy to see and understand — more efficient processes, less human errors and more consistent outputs.

What is less obvious is the fundamental change in the nature of work experiences — such as the perceived value of the work done as we allow AI to perform more and more of our work.

Traditionally, mastery experiences involve individuals actively overcoming challenges, refining their skills and eventually achieving desired outcomes. This gives value to their work and enhances their sense of competence.

Therefore, it can be said that as AI assumes greater responsibility for task execution, opportunities for individuals to derive that value and sense of satisfaction diminish, posing a challenge to the traditional link between hard work and success.

The belief that hard work directly leads to success is a fundamental social contract. Individuals invest time, effort and dedication under the assumption that their contributions will lead to tangible rewards and advancements.

If this belief is eroded or weakened due to AI’s growing role in task execution, it could leave individuals disillusioned and disheartened. The far-reaching negative consequences of widespread disillusionment due to a perceived disconnect between hard work and success can manifest in various aspects of society.

For instance, if entrepreneurs no longer believe that working hard leads to success, they may lose their motivation to innovate, take risks and persevere through setbacks. This can lead to a reluctance to start new ventures or pursue ambitious goals, stifling economic growth and innovation.

To test this hypothesis, we examined data collected by the Pew Research Centre from over 4,000 adults in the US. This dataset measured participants’ attitudes toward AI and the importance they placed on working hard by, for example, “Would you say that society generally places TOO MUCH importance on working and having a job, NOT ENOUGH importance on working and having a job, or is it just about right?”

We found that there was a positive correlation between positive attitudes toward AI and perceiving that society generally places too much importance on working and having a job, which suggests an association between favourable AI perceptions and a decreased emphasis on the value of traditional hard work.

We then conducted two experiments with another 389 working adults across from a wide range of industries from the US and the UK to test the causal link between the use of AI and the devaluation of labour and hard work.

In these studies, participants were asked to write a short essay on various topics. They were assigned to do it either with or without the assistance of ChatGPT. After collecting essays from participants, we had them rate the perceived value of hard work in the context of their writing process. Following this, also we hired 572 external raters to evaluate these essays.

The results indicated that participants who utilised AI assistance to write their essays perceived hard work as less valuable compared to participants who wrote their essays without assistance, indicating that using AI had a detrimental effect on the value they placed on hard work.

However, when it came to the matter of quality of work, the external raters reported the essays written with AI assistance to be of higher quality than those written without assistance. This was despite the fact that participants who used ChatGPT took less time on average (7.47 minutes) to write their essays compared to participants who did not use ChatGPT (9.31 minutes).

Finally, we conducted a study to replicate these experiments with 100 Singaporean students aged 12-15. It was interesting to note that this test with the students did not yield the same results as with the adults — students who engaged in an AI-assisted task did not perceive hard work as any less valuable compared to students who completed the task without AI assistance.

These results suggest that adolescents, having grown up in the era of technology and AI, perhaps are not as affected by these technologies in the same manner as adults. However, more research is needed to truly understand the generational differences between our responses to the prevalence of AI in our lives.

In sum, while AI undeniably enhances efficiency and objective quality of work, it concurrently fosters a perception of work as less distinctive and diminishes the subjective value accorded to hard work.

In other words, AI assistance erodes people’s sense of competence fulfilment, making them feel less unique and diminishing the value of their efforts.

How then should organisations look at adopting and integrating AI in the workplace?

Today, organisations are continually exploring avenues to bolster efficiency and streamline operations, and one such avenue is the integration of AI into the workplace. With its capacity to automate routine tasks, process vast datasets and provide data-driven insights,

AI holds the promise of revolutionising work processes, thereby enhancing productivity and bolstering competitiveness.

Whether it’s deploying AI-driven chatbots for customer service or leveraging AI algorithms for data analysis, organisations across industries are witnessing tangible improvements in operational efficiency as AI becomes increasingly integrated into their workflows.

Tasks that once demanded significant time and resources are now accomplished swiftly, thanks to AI-powered automation.

Consider the smartphone. On one hand, smartphones have undoubtedly made us more productive, allowing us to stay connected, access information on-the-go, and complete tasks efficiently.

However, the ubiquity of smartphones has also brought about unintended consequences, such as increased distraction at work, social media addiction, and feelings of loneliness and isolation.

Similarly, while AI holds the promise of boosting productivity in the workplace, there is a significant risk that it may also contribute to unintended drawbacks.

As organisations rush to adopt AI technologies in pursuit of efficiency gains, it is essential to acknowledge the potential unintended consequences that may arise, particularly concerning human motivation and the intrinsic value of place on hard work.

While AI may optimise processes and increase productivity on a surface level, our work suggests that its use could inadvertently lead to a gradual disengagement of employees from their work.

One way to counter this is for organisations to adopt a proactive approach to job redesign, aiming to provide employees with opportunities for mastery and purpose in the AI-enabled workplace.

Job redesign involves reimagining job roles and responsibilities to leverage AI for tasks that complement human skills, such as creativity, critical thinking, and complex problem-solving.

Rather than focusing solely on task automation, organisations can reallocate responsibilities to enable employees to develop a deeper understanding of their work and achieve mastery in multiple areas. This may include skill-based task rotation, challenging assignments, and opportunities for feedback and recognition.

For instance, AI can handle data analysis and provide insights, while employees engage in interpreting results, identifying patterns, and making strategic decisions based on these insights. This allows employees to develop a deeper understanding of the data and hone their analytical and deci- sion-making skills.

By redesigning jobs to emphasise skill development, challenging assignments, and recognition of achievements, organisations can foster a culture of continuous learning and growth.

Employees are empowered to engage in intellectually stimulating work, driving innovation and strategic decision-making. This not only enhances job satisfaction and employee retention but also reinforces the value of human contribution in the AI-enabled workplace.

Alexander Eng is the assistant professor at Asia School of Business and Sam Yam is the professor at the National University of Singapore.

Originally published by The Malaysian Reserve.

As artificial intelligence advances, its implications and transformative impact serves as a call to action for policy makers

AFTER more than 80 years in the making, artificial intelligence (AI) has finally reached a point of inflection with the advent of generative AI. Gen AI can redefine industries, reshape the labour market, and challenge the capabilities of both individuals and corporations.

As we navigate this rapidly evolving landscape, the need for strategic adaptation is becoming existential, encompassing reskilling initiatives for society, governmental financial and computation support, and corporate innovation.

Read the full article HERE.
Originally published by The Star.

Author: Batman