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TRAILBLAZING AI IMPLEMENTATION: OVERCOMING REGULATORY HURDLES AND BRIDGING TALENT GAPS TO TURN RESISTANCE INTO RESILIENCE IN THE BANKING INDUSTRY IN MALAYSIA
Abstract
The rapid integration of Artificial Intelligence (AI) in the banking sector offers both transformative opportunities and significant challenges. This study investigates the impact of resistance to change, talent and skills gaps, and regulatory compliance on the successful implementation of AI technologies at XYZ Bank Headquarters in Malaysia. For confidentiality, the name of the bank is withheld. Using a quantitative research methodology, data were collected through a self-administered questionnaire distributed to 370 employees across various departments and hierarchical levels. Respondents were selected using a simple random sampling method. The study aimed to evaluate the relationships between these critical factors and AI implementation. Findings indicate that all three factors significantly influence AI implementation at XYZ Bank, with regulatory compliance emerging as the strongest predictor, followed by resistance to change and the talent and skills gap. These results suggest that addressing employee resistance, bridging workforce skill deficiencies, and ensuring regulatory adherence are crucial for overcoming barriers to AI implementation. The study concludes that for XYZ Bank to fully harness the advantages of AI, strategic efforts must focus on fostering a culture of adaptability, investing in talent development, and maintaining compliance with evolving regulatory frameworks. Such efforts are essential for enhancing the bank's operational efficiency and securing a competitive edge in the digital banking era.
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DOI: http://dx.doi.org/10.46827/ejhrms.v8i2.1836
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