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Indonesia's leap into the future of AI
GenAI stands at the forefront of AI evolution, offering a spectrum of applications that seamlessly blend with real-world data and predictive analytics.
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An illustration of artificial intelligence (AI). (Shutterstock/LookerStudio)
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n 2023, the technology landscape was revolutionized as Generative Artificial Intelligence (GenAI) burst onto the global stage, led by trailblazers like ChatGPT. Catapulting beyond mere technological advancement, GenAI has not only captured the public imagination but also achieved a staggering valuation measured in billions of dollars. This is not just progress; it is a paradigm shift, long anticipated by visionaries but now a headline-grabbing reality.
GenAI stands at the forefront of AI evolution, offering a spectrum of applications that seamlessly blend with real-world data and predictive analytics. This is not just technology; it is a thriving ecosystem of innovation, often fueled by the collaborative spirit of open source communities. GenAI is redefining the boundaries of what AI can achieve, making it more accessible, intuitive and impactful than ever before.
In the vibrant and diverse landscape of Southeast Asia, the adaptive nature of GenAI opens a treasure trove of possibilities. Local innovators are not just adopting GenAI; they are reinventing it, crafting bespoke solutions that resonate with the unique needs and aspirations of this dynamic region.
The global stage is already alight with the transformative power of GenAI. In India, for example, a visionary innovator harnessed the prowess of ChatGPT’ s advanced language models, crafting a ground-breaking prototype that seamlessly translates local dialects into actionable, context-rich advice for farmers, revolutionizing agricultural communication.
Governments throughout Southeast Asia are rapidly embarking on this GenAI journey. Spearheading this movement is Singapore’s ‘AI Trailblazers’ initiative, a bold venture by the Ministry of Communications and Information to unveil 100 GenAI use cases in a mere 100 days. Indonesia and Malaysia, and their neighbors are not far behind, each zealously charting their own course toward a GenAI-driven economic renaissance.
Indonesia emerges as a digital powerhouse, ripe for GenAI disruption. With a staggering base of over 200 million internet users and more than 370 million cellular connections, the archipelago presents a fertile ground for technological innovation and digital transformation. Indonesia’s 2021-2022 Digital Roadmap paints a future of modernized digital infrastructure, streamlined digital governance, an invigorated digital economy and a fortified digital society. GenAI emerges not just as a tool but as a catalyst, poised to turn these ambitious blueprints into tangible realities.
During an era in which digital infrastructure is still burgeoning, GenAI emerges as a game-changer for aspirational nations like Indonesia. It is an opportunity to not just catch up, but to leap ahead of the established tech giants in ‘mature’ markets. Freed from the constraints of outdated technology paradigms, Indonesian companies and government entities have the chance to leap directly into the future, adopting scalable, cloud based GenAI solutions to fast-track the digital evolution.
Furthermore, GenAI stands at the crossroads of technology and social advancement, offering synergistic solutions to some of Indonesia’s most pressing issues, including transitioning to sustainable energy, adapting to climate change, optimizing agricultural practices or developing smarter urban infrastructure. Notable start-ups in Indonesia like Waresix, McEasy, Mekari, Ruangguru, Peris.ai, Bahasa.ai and Feedloop are already at the forefront, integrating AI in unique ways to improve operational efficiency, customer service and decision-making processes.
Though global supremacy might be a distant dream, the potential of GenAI to elevate Indonesia's socioeconomic landscape is tangible and immediate, especially for the micro, small and medium enterprises (MSMEs) that form the very backbone of its economy. With a staggering 64 million MSMEs, accounting for 99 percent of Indonesia’s enterprises, the infusion of GenAI tools and capabilities into this vital sector promises to be a catalyst for monumental growth and innovation.
Does the ascent of GenAI signal the end for traditional AI and machine learning (ML) solutions? At Boston Consulting Group (BCG), we do not think so. Instead, GenAI is set to coexist and collaborate with traditional AI, pushing the boundaries of innovation and speeding up existing applications. Traditional AI and ML will continue to thrive in areas like fraud detection, dynamic pricing, data-driven optimization and talent retention, maintaining their relevance in the business world.
GenAI will complement these applications, bringing its unique strengths to the table—synthesizing insights from vast datasets, writing and debugging code, crafting engaging conversational experiences and generating creative content. This harmonious synergy between traditional and generative AI is poised to maximize value creation and amplify business impact. As AI integrates into every aspect of business operations, it will introduce new dynamics and redefine roles, both old and new, as detailed in our recent report, “A Generative AI Roadmap for Financial Institutions”.
In today’s fast changing world, companies must awaken to the profound disruption GenAI is poised to unleash, seizing the moment to integrate these cutting-edge solutions in ways that unlock unparalleled value for their operations. The key to seizing the initiative lies in bridging the knowledge gap swiftly. Those who adapt to GenAI with agility and foresight will lead the charge in the unfolding tech evolution, positioning themselves at the vanguard of competitive advantage. GenAI is set to become the cornerstone of all future competitive strategies.
In this new age of AI, we at BCG foresee a diverse range of AI-centric roles emerging, from technology specialists who architect and oversee AI models, supporting tech platforms with their deep technical acumen; to functional experts who steer AI operations toward tangible business outcomes, embedding models seamlessly into business processes; and practitioners who harness AI outputs, translating complex data and content into value for customers and employees.
While embracing GenAI, the importance of rigorous validation and testing in designing new solutions, however, remains paramount, with traditional AI continuing to play a pivotal role as a value enabler. In this evolving landscape, proprietary data emerges as a critical differentiator, positioning the early adopters of ground-breaking GenAI solutions to capture a disproportionate share of value.
Tech leaders are called to act with urgency. Pioneering through early experimentation, channeling significant investment into digitization and prioritizing proprietary data will distinguish the trailblazers. In a landscape rife with unprecedented opportunities and challenges, success hinges on a blend of visionary thinking, adaptability, collaboration, innovation and agility. This integrated approach is about harmonizing a long-term vision with nimble, strategic actions.
-- The writer is a managing director and partner at Boston Consulting Group.
