TLDR: A Special Task Force on Agency Reform (STAR) convened in Putrajaya on August 18, 2025, to examine the role of Artificial Intelligence (AI) in boosting worker productivity. Chaired by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, the meeting addressed concerns raised by Prime Minister Datuk Seri Anwar Ibrahim regarding the ‘AI Productivity Paradox,’ where significant AI investments do not always yield expected productivity gains. The task force is reviewing studies from institutions like the United Nations University, McKinsey, and JP Morgan, with a report to be submitted to the Prime Minister within two weeks.
PUTRAJAYA – The Special Task Force on Agency Reform (STAR) held a crucial meeting on Monday, August 18, 2025, in Putrajaya, focusing on the integration of Artificial Intelligence (AI) to enhance worker productivity within government agencies. The session, led by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, aimed to deliberate on findings from various studies concerning AI adoption and its measurable impact on the workforce.
A key point of discussion was the ‘AI Productivity Paradox,’ a phenomenon highlighted by Prime Minister Datuk Seri Anwar Ibrahim. This paradox refers to the observation that substantial investments in AI and digitalization do not consistently translate into higher productivity. Prime Minister Anwar previously cited studies from the United Nations University (Tokyo), McKinsey, and JP Morgan’s experiences, indicating that only a modest 3% to 7% of AI adoption has shown a measurable impact on workers’ productivity or income.
This concern is particularly pertinent as the government’s broader digital transformation and AI agenda are designed to significantly boost national output and productivity. To address this challenge, Datuk Dr Mohd Zabri Yusoff, Director of the National Institute of Public Administration (INTAN), was tasked with presenting an initial report based on the United Nations University’s study.
Also Read:
- Global Powers Vie for Influence in Shaping Southeast Asia’s AI Future
- South Korea’s Deputy PM Koo Advocates for AI Integration in Ministry of Economy and Finance
Chief Secretary Shamsul Azri Abu Bakar stated that the task force would thoroughly deliberate on the report’s findings. Following this, feedback and preliminary recommendations are expected to be provided to Prime Minister Anwar Ibrahim within two weeks. The initiative underscores the government’s commitment to leveraging advanced technologies like AI responsibly and effectively, ensuring that technological advancements yield tangible benefits for public sector efficiency and overall economic growth.
