Digital Transformation: An Exploring Barriers and Challenges Practice of Artificial Intelligence in Manufacturing Firms in Malaysia

Authors

  • Md Fauzi Ahmad Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia
  • Noor Athirah Adila Husin Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia
  • Ahmad Nur Aizat Ahmad Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia
  • Huda Abdullah Universiti Kebangsaan Malaysia (UKM), Bangi, Selongor, Malaysia
  • Chan Shiau Wei Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia
  • Mohd Nasrun Mohd Nawi School of Technology Management and Logistic, Universiti Utara Malaysia, Malaysia

DOI:

https://doi.org/10.37934/araset.29.1.110117

Keywords:

Digital transformation, artificial intelligence, barriers, challenges

Abstract

Digital transformation has become very crucial in global market. Digital technologies have revolutionized the way industries operate, introducing the concept of “Industry 4.0” or the “smart factory”. Digital technologies have substantially transformed the business and society, bringing fundamental changes through the new emerging approaches of the circular and sharing economy. Artificial intelligence (AI) is now become an essential part in the manufacturing industry to enhance the performance and boost the demand and productivity in the manufacturing firms. However, there are some barriers and challenges face by the manufacturing firms in implementing the AI due to the infancy stage of AI in Malaysia such as lack of talent, lack of incentive and innovation. Therefore, the purpose of this study is to identify the barriers and challenges in implementing AI. In this paper, managers from the manufacturing companies were selected as respondents based on Federal Manufacturing Malaysia Directory. The questionnaires are distributed to the respondents by using the online survey. A total of 93 questionnaires was collected with feedback rate, 23.3%. Descriptive analysis is used to identify the barriers and challenges. The highest level for barriers of AI is lack of talent. The highest level for challenges is no experts in company. This research provide input for manufacturing companies to improve the barriers and challenges for future improvement in implementing AI.

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Author Biographies

Noor Athirah Adila Husin, Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia

athirahadila04@gmail.com

Ahmad Nur Aizat Ahmad, Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia

aizat@uthm.edu.my

Huda Abdullah, Universiti Kebangsaan Malaysia (UKM), Bangi, Selongor, Malaysia

huda.abdullah@ukm.edu.my

Chan Shiau Wei, Faculty of Technology Management, Universiti Tun Hussein Onn Malaysia (UTHM), Parit Raja, Batu Pahat, Johor, Malaysia

swchan@uthm.edu.my

Mohd Nasrun Mohd Nawi, School of Technology Management and Logistic, Universiti Utara Malaysia, Malaysia

nasrun@uum.edu.my

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Published

2022-12-29

How to Cite

Md Fauzi Ahmad, Noor Athirah Adila Husin, Ahmad Nur Aizat Ahmad, Huda Abdullah, Chan Shiau Wei, & Mohd Nasrun Mohd Nawi. (2022). Digital Transformation: An Exploring Barriers and Challenges Practice of Artificial Intelligence in Manufacturing Firms in Malaysia. Journal of Advanced Research in Applied Sciences and Engineering Technology, 29(1), 110–117. https://doi.org/10.37934/araset.29.1.110117

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