Jakarta (ANTARA) – Digital technology has undoubtedly revolutionized the way businesses operate in Indonesia.
For example, in the food and beverage industry, waiters no longer take orders and record them manually on paper.
A simple QR code placed on the table has changed the entire process from browsing the menu to paying.
Additionally, customers can now easily purchase a variety of products with just a few taps on their devices, eliminating the need for time-consuming and costly trips to traditional stores.
These are just a few examples of how technology is reshaping the business environment and consumer behavior.
Understanding consumer preferences is essential for business success in today’s competitive marketplace.
Artificial intelligence (AI) will be a key driver of consumer behavior and business activity in the coming years, according to Alex Yao, co-head of Asia Pacific technology, media and telecommunications equity research at JPMorgan.
AI allows businesses to collect, process, and analyze vast amounts of data, giving them a deeper understanding of customer preferences and market trends.
This enables businesses to make data-driven decisions, personalize marketing campaigns, and optimize operations.
Pavel Yurovitzy, CEO of digital marketing agency KIT Global, revealed that the current digital age is forcing businesses everywhere to rethink traditional sales strategies.
Amid inflation, slowing growth, and changing consumer demands, businesses across Southeast Asia, especially those in Indonesia, are looking to reshape their digital marketing strategies, streamline operations, optimize costs, and enhance customer engagement. He pointed out that there is increasing focus on AI.
From AI-powered chatbots to personalized product recommendations, the applications of AI are diverse and far-reaching.
Economic conditions are forcing companies to find cost-effective solutions, and AI is helping them achieve results without overspending, Eurovitsky said.
According to KIT Global, recent case studies demonstrate the immense potential of AI-driven marketing, with some companies seeing an astounding 547x increase in website traffic and 50% conversion rates. reported a sharp increase in
In another example, a leading retail brand in Indonesia leveraged AI to optimize its advertising campaigns and achieve significant cost savings without compromising customer reach.
However, Yurovitsky pointed out that based on his team’s research, AI implementation in Indonesia is still in the experimental stage.
“The MMA Indonesia report shows that Indonesian companies are confident in the potential of AI, but are still hesitant due to several challenges,” he said.
One of the major obstacles is the lack of understanding regarding AI implementation, which makes it difficult to choose the right tools. Additionally, the perceived high cost of AI and automation solutions is another barrier for many companies.
The Indonesian government is well aware of the challenges and opportunities facing the business community in the digital age.
As former Communications and Information Minister Budi Aryeh Setiadi stated on September 28, 2024, the contribution of AI to Indonesia’s economy is expected to reach USD 366 billion by 2030.
The minister said the sector will drive Indonesia’s future economic growth, improve economic productivity through automation and innovation, and empower micro, small and medium-sized enterprises (MSMEs) to compete in the digital era.
However, major challenges remain, with limited funding and uneven infrastructure development hindering the widespread adoption of the internet, which is essential for AI growth.
Moreover, the lack of knowledge transfer from AI developing countries limits the establishment of effective AI governance.
According to Bagus Chandra Wibawa, IT project manager at Bank Negara Indonesia (BNI), the challenge is not only to understand the theory, but also to find people who can apply AI technology to real-world projects.
AI does not completely automate your business. Requires a combination of technical skills and business acumen.
Therefore, Mr. Wibawa said there is no doubt that AI technology raises concerns about potential job losses, and emphasized the importance of industry-academia collaboration to bridge the talent gap.
As AI becomes increasingly sophisticated, it will be able to automate tasks traditionally performed by humans, potentially leading to job losses in a variety of sectors.
Therefore, governments and businesses must balance such rapid technological transformation with preparing industries and talent to remain relevant and competitive in the digital age. It has an important role to play in providing education and training programs to prepare people for the future.
To address this challenge, the government partnered with technology giant Nvidia and telecommunications company Indosat Oldu Hutchinson to establish an AI development center at Solo Technopark in Central Java.
The initiative is worth USD 200 million and aims to accelerate AI innovation in Indonesia.
Nvidia CEO Jensen Huang visited Indonesia on November 14th and delivered a keynote speech at the Indonesia AI Day event in Jakarta.
During his visit, Mr. Huang discussed AI and its potential impact on Indonesia.
He also spoke via video call with President Prabowo Subianto, who has just arrived in Peru to attend the Asia-Pacific Economic Cooperation (APEC) summit in Lima, and to collaborate with Indonesian companies on developing AI technology. He expressed his determination.
During the conference call, Prabowo emphasized the importance of NVIDIA to Indonesia’s future and highlighted the transformative potential of AI.
He also said that Indonesia is keen to welcome NVIDIA as a partner and invited Mr. Huang to a future face-to-face meeting.
Huang’s visit signifies the growing importance of AI in Indonesia and highlights the potential for global tech giants and local companies to work together to drive innovation and economic growth.
The future of Indonesian business is inextricably linked to AI, and adopting this technology provides new opportunities for companies to drive growth and stay ahead of their competitors.
Addressing the challenges and ethical implications of AI is also important to ensure a sustainable and profitable future.
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Editor: Ajith Kulmala
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