Sustaining Digital Transformation: The Human Touch in AI Adoption for Economic Resilience in Malaysia’s Financial Sector

Abstract

This paper examines the critical role of the human touch in fostering sustainable adoption of generative artificial intelligence (GenAI) within Malaysia’s financial sector. Drawing upon insights from recent Bank Negara Malaysia surveys, which reveal that only 20% of C-suite executives actively engage with GenAI tools, the study underscores the leadership gap that constrains inclusive digital transformation. Anchored in the literature on emotional intelligence and trust in technology-driven change, the paper employs a conceptual analysis informed by industry reports, regulatory frameworks, and recent empirical findings. The discussion highlights how leaders equipped with emotional intelligence can reduce resistance to technological change, inspire workforce adaptability, and build trust in AI-driven systems, thereby strengthening both organisational resilience and sectoral sustainability. Furthermore, the study situates AI adoption within broader discourses of sustainable economic development by linking technological innovation to human capital enhancement, ethical governance, and inclusive financial services. Findings suggest that balancing automation with the human touch is indispensable for ensuring that AI-driven transformation supports productivity, equity, and long-term sustainability. The paper concludes with policy recommendations, emphasising leadership development, responsible AI governance, and targeted workforce reskilling as key enablers of sustainable digitalisation in Malaysia’s financial sector.