Sharp contrast revealed: 74% of employees are comfortable with AI as co-pilot, but only 23% would accept an AI manager.

Workday, Inc., the AI platform for managing people, money, and agents, released a new research that shows that while AI agents are gaining ground in the Malaysian workplace, employees still want clear boundaries. According to the report AI Agents Are Here – But Don’t Call Them Boss, 74% of workers in Malaysia are comfortable teaming up with AI agents—but only 23% say they are comfortable being managed by one. This signals a key challenge for businesses here: how to embrace the power of AI without losing the human touch.

The research highlights widespread optimism is driving the rapid adoption of AI agents into core operations among Malaysian businesses, particularly in finance and HR. Malaysian leaders and employees strongly believe in AI agents’ potential to boost organisational productivity, operational efficiency and employee experience, with rapid returns on investment.

However, ethical, security, and governance concerns remain the primary barriers to broader adoption, far outweighing technical or financial challenges. Despite 83% of organisations in Malaysia expanding their use of agents, employees are clearly drawing a line between how they are and are not willing to work with AI.

“We’re entering a new era of work in Malaysia where AI can be an incredible partner for organisations today, complementing human judgement, leadership and empathy,” said Jess O’Reilly, general manager, ASEAN, Workday. “It is important that we rely on AI as a partner, not a leader, in order to unlock its productivity potential while driving trust. To do so, Malaysian organisations need to be intentional in how AI is used and keep people at the centre of every decision.”

Key Malaysian findings from the report include:

  • AI as Co-Pilot, Not Commander: Three out of four employees in Malaysia (74%) are very comfortable with AI agents working alongside them and recommending new skills, preferring them in collaborative roles—but only 23% are comfortable with an AI agent managing them. A mere 9% are comfortable with AI agents operating in the background without human knowledge. Establishing clear boundaries for AI and transparency are key to building employee trust and driving greater adoption. AI agent solutions should be designed to keep humans in control of sensitive decision-making areas
  • Ethical risks rank as the biggest concern in AI agent adoption: Despite high levels of adoption and confidence in its potential, ethical risks—including bias, discrimination, and misuse—are perceived as the most significant challenge to introducing AI agents into the Malaysian workforce. Concerns around ethical issues (53%) far outweigh other implementation challenges such as technical gaps (12%), emotional factors (12%) and financing (10%). Clear communication, supported by robust governance frameworks, will be instrumental in building trust when deploying AI agents in workplaces.
  • AI regulation and oversight: More than half of respondents in Malaysia indicated a need for strict human oversight when it comes to regulating autonomous AI agents, highlighting a strong consensus for principled and hands-on governance. Furthermore, there is overwhelming agreement (97%) that the management responsibility of these AI Agents should lie with IT or Technology functions.
  • The Double-Edged Sword of AI Productivity: In Malaysia, nearly all (94%) respondents believe AI agents will increase their productivity and 86% agree it will help their organisation innovate more rapidly. However, many are also concerned that these productivity gains will lead to a decline in critical thinking (51%), diminish the quality of human interaction (47%), and increase pressure to work faster (37%). This underscores the need for thoughtful implementation that prioritises employee well-being.
  • Distinct Roles for Agents and Humans: Most employees in Malaysia see agents as teammates, not full members of the workforce. Trust in AI also depends heavily on the task; it is highest for collaborative or supportive functions such as IT support and skills development and lowest for sensitive decision-making areas like hiring, finance, and legal matters, underscoring the need for human oversight and accountability.
  • Finance Sees Big Potential: With the industry facing a shortage of CPAs and finance professionals, more than half (52%) of finance workers believe AI agents will help close the gap and only 12% are worried about job loss. The top uses for AI agents in Finance include fraud detection (38%), forecasting and budgeting (29%), and audit support (24%)

This research underscores a crucial path forward: to harness the potential of AI, organisations in Malaysia must focus on building trust through transparency and empowering their people. This isn’t just about deploying new technology. It is about thoughtfully designing a future where AI agents enhance human capabilities, enabling a more productive and fulfilling work experience for all.

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