FROM drafting documents to analysing performance, generative artificial intelligence (AI) is beginning to shape how bosses and employees interact. For many companies, this means rethinking old rules and practices to keep things fair, transparent and legally sound.
To get ahead of this shift, the Malaysian Industrial, Commercial and Services Employers Associa-tion (MICSEA) has begun initiatives to help employers and HR professionals manage AI’s growing role in industrial relations (IR).
The aim is not only to ensure responsible use of the technology but also to respond to government calls for ethical and policy readiness.
MICSEA president YK Lai says the initiatives are meant to turn unease about AI into practical strategies that benefit both employers and employees.
“We are encouraged by Human Resources Minister Steven Sim’s vision that AI doesn’t just threaten jobs, it transforms them. Our role, as employers, is to move from worry to strategy.
“That means equipping HR departments with AI skills, updating policies and ensuring IR practices evolve in line with ethical, legal and societal expectations. AI should empower, not replace; it should be transparent, fair and inclusive,” Lai said.
Among the steps being rolled out are workshops that look at how AI can be applied in domestic inquiries without undermining due process, as well as tool kits to guide companies in updating contracts, handbooks and grievance procedures.
MICSEA is also offering readiness audits to help employers identify compliance gaps when using AI for workplace decisions. In addition, the association is setting up a dedicated forum where employment lawyers, HR leaders and ethicists can discuss challenges and establish best practices.
According to MICSEA, these initiatives will improve consistency and transparency in decision- making, reduce legal risks in disciplinary cases, and ensure that AI adoption in the workplace aligns with Malaysia’s national policy direction.
MICSEA also wants to work closely with policymakers, training institutions and industry partners to develop shared standards and frameworks for AI in industrial relations.
Syed Umar Ariff. (2025, September 21). From worry to strategy. The Star. Retrieved from https://www.thestar.com.my/news/focus/2025/09/21/from-worry-to-strategy
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