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The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment

This study aims to conduct a systematic review of the implications of adopting Artificial Intelligence (AI) on the economic landscape of Malaysia. Aligned with economic growth theories, the research underscores AI's pivotal role in transforming resources characterized by diminishing marginal re...

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Main Authors: Caroline Geetha, Mat Salleh Ayub, Elijah Vivin Vincent Chandran
Format: Article
Language:English
English
Published: Penerbit Universiti Malaysia Sabah 2024
Subjects:
HB1-3840 Economic theory. Demography
HC94-1085 By region or country
Online Access:https://eprints.ums.edu.my/id/eprint/40579/1/ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/40579/2/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/40579/
https://doi.org/10.51200/mjbe.v11i1.5294
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spelling my.ums.eprints.405792024-08-09T00:20:25Z https://eprints.ums.edu.my/id/eprint/40579/ The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment Caroline Geetha Mat Salleh Ayub Elijah Vivin Vincent Chandran HB1-3840 Economic theory. Demography HC94-1085 By region or country This study aims to conduct a systematic review of the implications of adopting Artificial Intelligence (AI) on the economic landscape of Malaysia. Aligned with economic growth theories, the research underscores AI's pivotal role in transforming resources characterized by diminishing marginal returns into assets with increasing marginal returns. The analysis is multifaceted, addressing three fundamental perspectives. First, it examines AI adoption's impact on both microeconomic and macroeconomic dimensions. At the macroeconomic level, the study observes AI's influence on demand-pull and cost-push inflation, affecting overall price levels in the Malaysian economy. At the microeconomic level, AI adoption is linked to increased productivity and efficient resource allocation, leading to economies of scale. In an innovative and competitive business environment, AI adoption further enhances the quality of goods and services while ensuring competitive pricing strategies. Second, the study differentiates the positive and negative consequences of AI adoption across various sectors and demographic groups, providing specific examples of how different industries and population segments may benefit from or face challenges due to AI implementation. Finally, the analysis distinguishes the short-term and long-term impacts of AI adoption. In the short term, changes in employment, productivity, and consumer prices are identified, while the long-term analysis explores structural changes, including income redistribution and sustained productivity growth. The findings highlight the net positive impact of AI adoption in Malaysia, emphasizing that its benefits outweigh the costs. The study underscores the significance of government involvement in formulating policies and providing necessary infrastructure, aligning with Romer's theory of economic growth to drive successful and sustainable AI adoption for economic development. Penerbit Universiti Malaysia Sabah 2024 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/40579/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/40579/2/FULL%20TEXT.pdf Caroline Geetha and Mat Salleh Ayub and Elijah Vivin Vincent Chandran (2024) The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment. Malaysian Journal of Business and Economics (MJBE), 11 (1). pp. 1-17. ISSN 2289-6856 https://doi.org/10.51200/mjbe.v11i1.5294
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
English
topic HB1-3840 Economic theory. Demography
HC94-1085 By region or country
spellingShingle HB1-3840 Economic theory. Demography
HC94-1085 By region or country
Caroline Geetha
Mat Salleh Ayub
Elijah Vivin Vincent Chandran
The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
description This study aims to conduct a systematic review of the implications of adopting Artificial Intelligence (AI) on the economic landscape of Malaysia. Aligned with economic growth theories, the research underscores AI's pivotal role in transforming resources characterized by diminishing marginal returns into assets with increasing marginal returns. The analysis is multifaceted, addressing three fundamental perspectives. First, it examines AI adoption's impact on both microeconomic and macroeconomic dimensions. At the macroeconomic level, the study observes AI's influence on demand-pull and cost-push inflation, affecting overall price levels in the Malaysian economy. At the microeconomic level, AI adoption is linked to increased productivity and efficient resource allocation, leading to economies of scale. In an innovative and competitive business environment, AI adoption further enhances the quality of goods and services while ensuring competitive pricing strategies. Second, the study differentiates the positive and negative consequences of AI adoption across various sectors and demographic groups, providing specific examples of how different industries and population segments may benefit from or face challenges due to AI implementation. Finally, the analysis distinguishes the short-term and long-term impacts of AI adoption. In the short term, changes in employment, productivity, and consumer prices are identified, while the long-term analysis explores structural changes, including income redistribution and sustained productivity growth. The findings highlight the net positive impact of AI adoption in Malaysia, emphasizing that its benefits outweigh the costs. The study underscores the significance of government involvement in formulating policies and providing necessary infrastructure, aligning with Romer's theory of economic growth to drive successful and sustainable AI adoption for economic development.
format Article
author Caroline Geetha
Mat Salleh Ayub
Elijah Vivin Vincent Chandran
author_facet Caroline Geetha
Mat Salleh Ayub
Elijah Vivin Vincent Chandran
author_sort Caroline Geetha
title The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
title_short The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
title_full The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
title_fullStr The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
title_full_unstemmed The Influence of Adopting Artificial Intelligence (AI) On Malaysia's Economic Environment
title_sort influence of adopting artificial intelligence (ai) on malaysia's economic environment
publisher Penerbit Universiti Malaysia Sabah
publishDate 2024
url https://eprints.ums.edu.my/id/eprint/40579/1/ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/40579/2/FULL%20TEXT.pdf
https://eprints.ums.edu.my/id/eprint/40579/
https://doi.org/10.51200/mjbe.v11i1.5294
_version_ 1807050426917322752
score 13.211869

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