Malaysia, 7 March 2025 - Hays, the world's leading recruitment and workforce solutions specialist, has released a report examining the transformative effects of artificial intelligence on the technology workforce.  

It ranked key technology jobs on how AI would impact them, with a score of 100 being the most impacted and 0 being the least impacted. 

AI is rapidly reshaping the job market, causing certain roles to decline while others gain prominence. According to Hays' report, 'The Future of Work: How AI is impacting your workforce’, technology roles will undergo substantial changes, requiring upskilling to reallocate resources effectively.  

Integrating AI into digital transformation efforts presents significant challenges for organisations, requiring the right vision, stakeholders, data, infrastructure, and skills. The report provides insights into the global tech talent landscape and offers actionable advice for effective technology implementation and adoption. This includes an analysis of global job volume from early 2022 to the end of 2024, offering insights into the demand for key skills and the impact of Gen AI, enabling organisations to adjust their digital transformation strategies accordingly.  

Roles with higher AI Impact scores are at risk of having tasks removed as AI can perform repetitive and data heavy tasks more efficiently and accurately than humans. However, rather than eliminating entire positions, AI is automating parts of jobs and reallocating tasks. This shift has the potential to enhance the overall quality of roles by amplifying the need for more strategic positions. For example, there will be less demand for entry level coders with AI able to generate similar outcomes, leading to more senior roles in quality assurance and implementation.  

Lower demand for Software Developers, but Malaysia remains leading hub for skills 

The report reveals that while Software Development remains the most in-demand skills globally, its demand saw a rapid decline in 2024 due to automation and talent redeployment. Organisations are encouraging the use of AI to enhance productivity by automating repetitive tasks, leading to a reduced demand for roles like software developers. This trend is expected to continue into 2025. 

“Malaysia was not exempt from declining demand for software development, with a 32 per cent reduction in demand between 2022 and 2024,” said Natasha Ishak, Regional Director at Hays Malaysia. “Even so, Malaysia remains a critical hub for software development skills which are available at a lower cost compared to regions such as Central Europe and Australia.” 

Malaysia was the least impacted for demand, with other locations in Asia seeing greater decline. Roles in Japan saw a 59 per cent reduction from 2022 to 2024, followed by Singapore (66 per cent), China (71 per cent) and Hong Kong (90 per cent). 

“As job volume continues to be reshaped by evolving technology, organisations that continue to benefit from the availability of skills in Malaysia will need to consider how to continue developing this talent network to ensure skillsets remain relevant,” said Natasha. 

Stagnating global growth affecting infrastructure investment 

Infrastructure roles also faced challenges, with demand dropping after a post-pandemic spike. Economic factors and budgetary pressures have contributed to a decline in demand for traditional support roles, as companies adjust to new norms and streamline costs. 

"Demand for infrastructure roles in Malaysia has decreased by 46 per cent since 2022, closely followed by Singapore at 41 per cent. China experienced the most significant decline in Asia, with demand falling 86 per cent in the same period," said Natasha. 

Few professionals have received AI training

Insights from the 2025 Hays Asia Salary Guide reveal that while 56 per cent of working professionals in Malaysia use AI tools at work, only 26 per cent have received training to use such tools. Furthermore, 46 per cent of professionals do not use AI tools due to a lack of understanding, support or training. 

"With 94 per cent of professionals in Malaysia eager to adopt AI tools at work, and 64 per cent of organisations grappling with critical skill gaps this year, it's imperative for leaders to consider upskilling programs to foster learning and growth among employees," said Natasha. 

James Milligan, Hays, Global Head of Technology, Engineering and Contracting 

"2025 marks the transition from isolated AI-enabled initiatives to comprehensive technology solutions that will reshape how work is done. This transformation will extend beyond 2025, with full implementation taking five to ten years for most businesses. Understanding the impact on hiring strategies and identifying key skills will be critical, with the quality, integration, and ROI of technology a direct result of the foundations laid in the next 12 months." 

"Each new wave of technology, including Gen AI, brings predictions of job disruptions and new skill demands. While Gen AI is expected to continue to enhance productivity and add financial value, its benefits will vary across roles and sectors. Organisations must thoughtfully integrate human and machine intelligence to maximise effectiveness. Simply replacing roles with AI for immediate cost savings can harm long-term performance. Instead, organisations should focus on reskilling employees in 'at-risk' roles and consider internal redeployment to meet evolving needs. 

"Organisations must adapt to the rapid creation and reduction of jobs driven by evolving technologies and AI automation. Defining specific skills needed at each stage of digital transformation is crucial, and a blend of high-skill contract workers and permanent employees can be more effective. Emphasising soft skills like communication, negotiation, self-awareness, and emotional intelligence is vital, especially in rapidly changing sectors. 
 

Click here to download your copy of the Future of Work report

For more information contact:

Sonel Singh, Head of Marketing, Hays Southeast Asia
T: +60 3 7890 6351
E: sonel.singh@hays.com.my