Failing to develop supporting infrastructure and regulations, as well as nurturing local talent, could cause Indonesia to be sidelined in the global AI boom, multiple surveys show, while experts caution about taking a balanced approach to mitigate related risks.
ndonesia is at risk of missing out on the global boom in artificial intelligence development, with experts pointing to a greater likelihood of this happening if the country did not make a decisive move in developing the relevant infrastructure and human capital it lacks compared to its peers.
This year saw a significant growth in investors’ appetite in AI development, with venture capital investment in the sector expected to top US$45 billion globally, almost double last year’s $24 billion, according to a Dec. 20 report by consultancy EY.
The generative AI market is set to explode to $1.3 trillion over the next decade from just $40 billion in 2022, according to a 2023 Bloomberg Intelligence report.
Southeast Asia is seen as having a unique opportunity to compete in the global AI landscape, particularly in data centers, according to the e-Conomy SEA 2024 report by Google, Temasek and Bain & Company.
“AI offers massive economic opportunities, but it also brings risks like high energy demands, costly investments, environmental concerns and job disruptions,” Arif Perdana, associate professor in digital strategy, data science and information systems management at Monash University’s Indonesia campus, told The Jakarta Post on Dec. 17.
The country faced a tough choice with AI, said Arif, likening it to a dilemma: Falling behind could hurt Indonesia’s competitiveness, but jumping in too fast could lead to chaos.
Southeast Asia’s largest economy ranks the third lowest among the 12 Asia-Pacific countries surveyed in the 2023 Asia Pacific AI Readiness Index of United States software company Salesforce.
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