Are our universities ready for the AI era?

In Malaysia, higher education has long been seen as a key part of the country's social contract. A university degree typically provided upward mobility and entry into the professional middle class. However, automation and artificial intelligence have disrupted this system. While the overall economy remains strong, the job market shows significant issues.

Unemployment among young people, ages 15 to 24, is still high at 10.1%, with many more in underemployment. Many graduates end up in low-skilled roles instead of professional positions. This shift means that traditional entry-level jobs, which once served as practical training, are now being done by AI. Universities can no longer just issue diplomas; they need to adapt their curricula to focus on important skills like complex thinking, innovation, and emotional intelligence.

The Malaysian government is taking steps to address this, aiming to integrate AI into 80% of university courses by 2030. But this change requires collaboration between universities, industry, and government. They need to work together on several fronts: updating programs to match technological advances, investing in technology and research, and providing ongoing training for workers.

If universities fail to adapt, they risk leaving many young Malaysians in low-paying service jobs while a small group benefits from the digital economy.