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Rise of the machines toward human well-being

Learning from e-books, working with emails, closing deals with clients via apps and seeing outer space through Google Earth, the world is slowly becoming more digital and virtual

Nadia Assegaf (The Jakarta Post)
Jakarta
Thu, September 14, 2017

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Rise of the machines toward human well-being

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earning from e-books, working with emails, closing deals with clients via apps and seeing outer space through Google Earth, the world is slowly becoming more digital and virtual. Humanity is at a crucial milestone due to technological developments. After the cloud era, we are now progressing to artificial intelligence.

Artificial intelligence, or AI, has ultimately driven business growth by helping enterprises to serve their customers better. While many people may think of artificial intelligence as something esoteric in the realm of science fiction, a myriad of ASEAN companies are applying these technologies to business challenges.

In the banking industry, for example, Singapore’s DBS Bank uses an engagement advisor technology to mine extensive volumes of complex data, such as product knowledge and research reports, and apply it to customer profiles. It helps relationship managers improve the wealth management advice they give to customers by considering the different financial options available.

The rise of AI solutions, too, has been evident in Indonesia. Corporations are adopting AI to enable them to survive the global competition in efficiency and productivity. The price advantage that characterized Indonesian products is no longer enough, if technology can increase productivity through speedier production.

The “Technology for Human” survey conducted by Accenture, a leading global IT solutions firm, saw 87 percent of Indonesian respondents agreeing that AI technology will revolutionize the way they obtain information and interact with customers.

Furthermore, an Accenture and Frontier Economics research shows that by 2035, AI will be able to take over all jobs. The study concludes that through a capital-labor hybrid with human resources, AI offers an ability to amplify the current capital and labor capacities to double economic growth by 2035. This projection shows that AI will have a high impact on marginal utility.

Looking at from the perspective of marginal costs when implementing automation, AI offers cost efficiency for businesses. In implementing a one-time system in advance, a company can remove year-to-year administration costs, which means big savings.

Hence, we arrive at the question of whether robots will take over human jobs and thus result in dismissals and a rise in unemployment. Data from the Central Statistics Agency (BPS) in February 2016 revealed that Indonesia’s unemployment rate reached 5.5 percent of the national workforce, or 7.02 million people.

Such intriguing questions need a thorough study to answer. The truth is, however, that first, AI will make our production process more efficient and compatible with data-driven applications typifying this information era. Second, automation is already in place extensively, particularly in high-risk and hazardous jobs, and to some extent, in analytical and administrative tasks.

AI serves to humanize machines, so people should work in ways to differentiate ourselves from automation. While by no means an exhaustive statement, we should think about how the advancement of technology can contribute to our lives. Globalization of technology is inevitable, so Indonesian professionals must brace for it and face the challenge by improving their competence.

AI should not be blamed solely for threatening Indonesian workers. The ASEAN Economic Community, to which Indonesia and nine other ASEAN members are committed, will increase the free flow of investment and labor, especially skilled workers, in the region.

AI is essentially an industrial or technological revolution which Indonesia cannot resist or delay. The good news is that some jobs will not be strictly replaced; they will simply be adjusted to allow for the new “technology careers.”

Not all fields will need to implement AI, but implementation will be more focused on where it can make a big impact on the public, such as the healthcare and banking industries. For instance, some hospitals in Jakarta have installed apps and tablets for digital check-in services.

As healthcare equipment becomes increasingly sophisticated, AI could eventually eliminate the need for human beings to interview patients. Not only would this make hospital staff more productive, it could also enhance patient services.

Nonetheless, automation and digitization will open many opportunities, including in Indonesia. The domino effect of AI will take shape in increased productivity, incomes, economic growth and ultimately, human well-being.
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The writer is a strategic procurement professional at IBM Indonesia, specializing in ICT products and IT services. The views expressed are her own.

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