Kuala lumpur: A detailed report on the impact of artificial intelligence (AI) on productivity, referred to as the AI productivity paradox, is expected to be tabled at the Cabinet meeting early next month, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar said.

According to BERNAMA News Agency, the study is currently being refined by the Malaysia Productivity Corporation (MPC), the National Institute of Public Administration (INTAN), and the Digital Ministry. Tan Sri Shamsul Azri stated, "I will be presenting it in detail for the second time. Insya-Allah, within two to three weeks, there will be a more comprehensive presentation," following his speech at the 4th National Governance, Integrity and Anti-Corruption Research Conference.

Shamsul Azri highlighted that a preliminary report was already 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 explained the concept of the productivity paradox, which describes situations where significant investments in AI or digitalisation do not necessarily lead to increased productivity.

"When we move towards AI or digitalisation, we must assess cost-effectiveness. There comes a point when spending heavily on AI or digitalisation causes productivity to plateau. So we need to ensure that every expenditure on AI and digitalisation truly delivers high productivity and the best outcomes for the government," Shamsul Azri emphasized.

The Prime Minister had previously cautioned about the risks associated with the AI productivity paradox, noting that substantial investments in AI do not automatically result in higher productivity. He pointed out that studies indicate only three to seven percent of AI usage has had a tangible impact on productivity or workers' income.