Banks Must Move Beyond AI Adoption To Trusted Implementation -- AICB
KUALA LUMPUR, July 8 (Bernama) -- There is a need for banks to move beyond Artificial Intelligence (AI) adoption towards trusted implementation, backed by stronger governance, assurance, resilience and future-ready talent, said the Asian Institute of Chartered Bankers (AICB).
In a statement, AICB said that as Malaysia’s financial sector advances its transformation under the Financial Sector Blueprint, banks are accelerating AI adoption while navigating evolving regulation, cyber risks, climate transition and geopolitical uncertainty.
“Addressing these priorities, the AICB 4th Malaysian Banking Conference (MBC 4.0) and the 2nd Bank Audit Conference (BAC 2.0), convened more than 1,000 banking, audit and regulatory leaders to explore how the industry can build trust and resilience while unlocking the full potential of AI,” it said.
The MBC 4.0 and the BAC 2.0 were held from July 7-8, 2026, at the Kuala Lumpur Convention Centre.
The conferences were officially launched by Minister of Finance II, Datuk Seri Amir Hamzah Azizan, and Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.
Organised by AICB’s Chief Internal Auditors Networking Group (CIANG), the Association of Banks in Malaysia (ABM) and the Asian Banking School (ABS), the conferences were held under one platform with the respective themes “Banking Reimagined: AI, Trust and the Future of Finance” and “Audit Reimagined: Innovation, Trust and the Future of Assurance”.
“Conversations and discussions focused on the critical role of AI, governance, cybersecurity, sustainability and workforce transformation in reshaping the future of banking and assurance,” it said.
A key milestone at the conference was the launch of the AICB-Ecosystm AI in Practice: How Malaysia’s Banks and DFIs are Adopting and Governing AI report, jointly developed by AICB, Ecosystm and AICB’s Chief Risk Officers’ Forum.
“Drawing on responses from close to 90 senior leaders across Malaysian commercial banks, digital banks and development financial institutions, the report provides an industry-wide benchmark on AI adoption, organisational readiness and governance practices across Malaysia’s banking sector,” it said.
The report found that while AI is already being deployed in areas such as Know Your Customer onboarding, fraud detection, Anti-Money Laundering and Counter Financing of Terrorism, and employee productivity, only 25 per cent of respondents trust AI-generated outputs enough to act on them in key business decisions.
“The findings mark a pivotal transition for the industry, from AI experimentation to responsible scaling, with trust, governance and assurance emerging as key enablers of long-term success,” it said.
Amir Hamzah, who delivered the special ministerial address, said, “The AI Governance Framework developed by AICB's Chief Risk Officers' Forum, with the support of BNM and the endorsement of the Association of Banks in Malaysia, reflects the kind of industry-led initiative that the sector needs today.
“Rather than being a government-led directive on how banks should adopt AI, it represents the banking industry taking the lead in setting its own standards and responsibilities. That is how trust is built, from within the system, not merely imposed upon it,” he said.
Abdul Rasheed, in his opening address, added, “Innovation is not just the adoption of technology, but also about leadership and governance to ensure that the financial system we build remains trusted and firmly anchored in the needs of society”.
Meanwhile, in his welcome remarks, AICB Chairman Tan Sri Azman Hashim said, “As the banking industry embraces AI and emerging technologies, continued investment in talent development and professional excellence will be critical to building resilient institutions and sustaining public confidence.
“Equipping banking professionals with the right capabilities will enable the industry to respond confidently to future opportunities and emerging risks,” he said.
The conferences reinforced AICB’s broader commitment to developing future-ready banking professionals through industry-wide initiatives such as the Future Skills Framework (FSF) and FSF Xcel.
“Developed in collaboration with industry stakeholders, the FSF identifies the critical capabilities and competencies required to support the future of banking while strengthening the long-term resilience, competitiveness and trustworthiness of Malaysia’s financial sector,” it said.
AICB said that as banks across the region confront similar questions around AI governance, cyber resilience, climate risk and talent readiness, AICB’s MBC 4.0 and BAC 2.0 served as a catalyst for strategic dialogue, cross-industry collaboration and the exchange of forward-looking perspectives.
It said this would enable Malaysia's financial sector to address critical issues, advance professional standards and develop practical responses to an increasingly complex global financial landscape.
“As Malaysia's leading professional body for the banking sector, AICB remains committed to advancing professional banking education excellence, developing the next generation of banking talent and fostering thought leadership that supports an innovative, competitive and trusted financial sector,” it added.
-- BERNAMA