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Positioning Malaysia alongside leading nations in Automation and AI

Updated: Feb 22


I deeply value our minister's significant contributions to our nation in the areas of digital and technology.


However, I propose that the Malaysian government should concentrate on investing in monetized automation and AI technologies that offer high returns (high ROI).


This strategy would optimize the use of taxpayer funds and investments, yielding substantial returns. The resulting funds could then be reinvested to enhance and update government agencies, GLCs, and businesses, or even to develop new initiatives that promote growth.


I think this approach could place Malaysia among the top countries in automation and AI. For example, focusing on commercial automation and AI applications, which provide greater returns and a wider economic impact, instead of technical automation/AI, which is harder to monetize.

These are the top 10 automation and AI solutions with the highest ROI:


1. AI-Powered Marketing and Advertising : Google Ads and Facebook Ads



Google Ads and Facebook Ads are leading in AI revenue, utilizing AI to enhance ad targeting. However, businesses have the option to create their own AI solutions for more precise targeting and automation.



Monetization: Increased ad revenue, better ROI on marketing spend, and enhanced customer loyalty.


2. E-Commerce Automation : AI-Driven Product Recommendations


AI algorithms examine user behavior to suggest products that customers are inclined to buy. This can boost the average order value (AOV) and customer lifetime value (CLV). E-commerce platforms such as Amazon and Shopify already employ AI to recommend products to users, but companies can develop tailored AI solutions for their unique customer base.


Amazon is one of the most influential companies in the world. With its powerful flywheel business model, Amazon has maintained its status as the top ecommerce retailer in the US and has even begun to wear away at the digital ad dominance of the Meta and Google duopoly. In addition, its cloud-computing division, Amazon Web Services (AWS), is used by organizations worldwide.



Monetization: Higher sales through better targeting, personalized recommendations, and dynamic pricing.


3. Robotic Process Automation (RPA) in Business Operations : Automating Back-Office Functions


This is what I have been working on with my teammates at ExxonMobil Exploration and Production Malaysia Inc (EMEPMI). We created, tested, and deployed our own RPA systems. RPA can automate repetitive tasks such as data entry, invoice processing, and customer onboarding, which helps lower labor costs and enhance efficiency. Companies like UiPath, Blue Prism, and Automation Anywhere provide RPA solutions that businesses can leverage to optimize internal processes or offer automation as a service.


NEW YORK--(BUSINESS WIRE)-- UiPath, Inc. (NYSE: PATH), a leading enterprise automation and AI software company, today announced financial results for its fourth quarter and full year fiscal 2024 ended January 31, 2024.


“We delivered a strong close to the fiscal year with fourth quarter ARR growing 22 percent year-over-year to $1.464 billion, underscoring the meaningful outcomes our Business Automation Platform delivers for our customers,” said Rob Enslin, UiPath Chief Executive Officer. “The combination of UiPath’s AI and automation is the strategic change enabler for our customers that makes any digital transformation easier and faster, while empowering customers to innovate, adapt more quickly, and grow.”



Monetization: Savings on operational costs, increased scalability, and the potential to offer RPA solutions to other businesses as a service.


4. AI-Powered Customer Support (Chatbots and Virtual Assistants) : 24/7 Customer Support Automation


AI chatbots and virtual assistants are capable of delivering real-time customer support by managing inquiries, resolving issues, and processing transactions autonomously. Companies such as Zendesk, Intercom, and Drift provide AI-driven customer service solutions that can enhance business efficiency and customer satisfaction.


Monetization: Reduced labor costs, faster response times, and improved customer retention, which translates into higher revenue.


5. Predictive Analytics for Business Optimization : Demand Forecasting and Inventory Management


AI can forecast customer demand and adjust inventory levels, helping businesses maintain the appropriate products in stock without overstocking or experiencing stockouts.


Monetization: Reduced inventory costs, optimized supply chain operations, and improved customer satisfaction through better stock availability.


6. AI-Driven Fraud Detection in Finance : Real-Time Fraud Prevention in Financial Transactions


AI algorithms are capable of identifying fraudulent activities, which is especially beneficial in industries such as banking, e-commerce, and insurance. Firms like Visa and Mastercard are already utilizing AI for detecting fraud.


Monetization: Reduced fraud losses, enhanced security, and the potential to offer fraud detection services to other businesses.


7. AI-Powered Sales and Lead Generation : Automated Lead Scoring and Conversion Optimization


AI is capable of evaluating prospects and aiding sales teams by recommending optimal times to reach out to leads and streamlining follow-up procedures. Companies such as Salesforce Einstein and HubSpot utilize AI to enhance lead management.


Monetization: Increased sales conversion rates, improved lead generation, and enhanced sales team productivity.


8. Autonomous Delivery and Logistics : AI in Delivery Route Optimization and Drones


AI can enhance delivery routes on-the-fly, lowering fuel expenses and boosting delivery efficiency.


Monetization: Savings in logistics, faster delivery times, and opportunities to charge premium rates for quicker service.


9. AI-Powered Content Creation and Curation : Automated Content Generation for Marketing


AI tools such as GPT-3 and other content generation models can produce written material, videos, and social media posts for companies. These tools assist businesses in expanding their content marketing initiatives while minimizing the necessity for extensive content teams.


Monetization: Reduced content creation costs, increased content output, and the potential for businesses to sell content creation as a service.


10. AI-Based Talent Acquisition and Recruitment : ATS and Automated Resume Screening and Interviewing


Companies are already using tools such as HireVue and Pymetrics to automate segments of their hiring process.


Monetization: Reduced hiring costs, faster recruitment cycles, and the ability to offer AI-powered recruitment solutions to other businesses.


Final Thoughts


Businesses can enhance efficiency and reduce costs through automation and AI. Automation eliminates repetitive tasks, allowing employees to focus on strategy, while minimizing errors in inventory and customer service. AI facilitates quick data analysis for informed decision-making and trend identification.


Cost savings arise from optimized resource use, enabling funds for innovation. AI tools also offer predictive analytics for better market forecasting and supply chain management.


Embracing these technologies helps businesses meet modern expectations and thrive in a competitive market.


The Malaysian government should concentrate on established Commercial Automation and AI. Success hinges on pinpointing high-return use cases that match business objectives and investing in scalable AI technologies capable of delivering concrete financial gains.


Written by Fauzi Awang, 19 November 2024


Sources:

1. PwC’s Global Artificial Intelligence Study: Exploiting the AI Revolution

2. 2024 AI Business Predictions

3. Technology and The Future of Work

4. The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

 
 
 

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