Yet, many enterprises in Indonesia remain stuck in the early stages, experimenting with AI but struggling to realize its full potential. Based on findings from the ASEAN Innovation Business Platform (AIBP), implementation barriers pose significant challenges, with 81 percent of Indonesian companies citing data quality and availability as their biggest hindrance, while 56 percent found it difficult to integrate AI solutions into existing systems. Addressing these challenges and unlocking opportunities is key for the future AI-powered Indonesian economy. 

Rapid rise of AI and what it means for enterprises

AI has rapidly evolved over the past few years, changing the way businesses operate. Today, we are able to converse with AI using natural language, significant progress from the tech-heavy language of its early days. But the most notable development is “agentic AI”, where systems exhibit reasoning, planning and memory capabilities, and can make decisions and execute complex tasks, either on human’s behalf or under human supervision. 

At its recent Next ‘25 conference, Google Cloud highlighted the growing adoption of Agentspace, which empowers employees with AI agents that can find and synthesize information from within organizations, brainstorm new ideas, research complex topics and optimize decision-making in real time. With Agentspace, employees can even create their own custom AI agents to automate everyday work tasks, without having to write a single line of code. For Indonesian enterprises, this can help them bridge the gap between AI adoption and effective implementation by encouraging the integration of AI agents into daily operations to boost productivity. 

The benefits of AI are highlighted in a Boston Consulting Group (BCG) study, which found that companies who lead in AI adoption experienced more than double revenue growth over three years with 38 percent increase in EBIT, 50 percent rise in market share and 45 percent improvement in customer satisfaction compared with companies that lagged in AI integration.

AI adoption is key to securing Indonesia’s place in global digital economy

Indonesia’s efforts to drive AI adoption and implementation through policies like its National Strategy for Artificial Intelligence are driving tangible benefits. According to BCG’s 2024 AI Maturity Assessment, Indonesia is categorized as a rising contender, demonstrating a high readiness level but low exposure to AI opportunities. 

This is likely due to gaps in AI investments and ecosystem development, causing Indonesia to fall behind AI pioneer nations such as Canada, China, Singapore, the United Kingdom and the United States. To close these gaps, the private sector in Indonesia must take a more active role in accelerating AI adoption. By integrating AI into their operations and investing in AI capabilities, Indonesian enterprises can strengthen the country’s position in the global AI landscape.

Five key strategies to realize AI value at scale 

Despite businesses being keen to evolve digitally, many still lack clear strategies when it comes to implementation. Without proper strategies in place, AI investments risk becoming isolated initiatives instead of growth drivers. To create an AI-ready economy, businesses in Indonesia need to move beyond experimentation and focus on scaling AI effectively. 

Successfully adopting and scaling AI is no easy feat, with 74 percent of companies struggling to scale AI’s impact. Having worked with various companies from multiple industries, BCG and Google Cloud have identified five key principles to help Indonesian companies drive adoption. 

1. CEO sponsorship. When CEOs champion AI initiatives, they set clear directions, secure necessary investments and create a culture that embraces AI-driven transformation. This strong leadership will trickle down the corporate ladder, instilling the values of innovation, risk-taking and problem-solving within employees of all levels. 
2. Clear integration with strategies. AI initiatives must be seamlessly embedded into the company’s broader strategic objectives to deliver real business value. Companies must train and ensure that employees are ready to integrate AI into their daily work lives. This ensures that it complements existing business priorities, while boosting a company’s digital maturity. 
3. Value-driven approach. Companies should prioritize a few high-impact AI initiatives, emphasizing quality over quantity. With a focused and value-driven approach, companies can ensure that AI investments are able to generate tangible returns. By concentrating on initiatives that offer measurable impacts, businesses can leverage their momentum to scale AI adoption.
4. AI-embedded ways of working. Workers must be equipped with the right tools and training to effectively and effortlessly embed AI into daily operations. This makes AI a natural part of decision-making and operations, enhancing efficiency and strengthening AI’s position as an asset and not an experimental tool. 
5. Robust security and guardrails. AI adoption must be built on a foundation of strong governance, data security and compliance to mitigate risks. With robust security measures and ethical guidelines, companies can leverage the power of AI without sacrificing on security and maintaining regulatory compliance. 

Accelerate AI adoption with industry partners

Companies do not have to go through AI transformation alone, blindly looking to capture value without the technical knowledge to succeed. 

Initiatives such as the newly launched BCG and Google Cloud AI Innovation Center are designed to provide a platform to support businesses across Indonesia as they realize the impacts of AI at scale. 

Google Cloud brings cutting-edge technology alongside BCG’s strategic industry know-how and experience of delivering impactful change in company processes. These industry partnerships offer an important foundation for the development of innovation and AI opportunities. 

By accessing these types of valuable resources, Indonesian businesses can accelerate AI adoption and strengthen their competitive edge in local and global markets.

Are you ready for an AI-driven future?

As AI continues to shape how we work, it is now more crucial than ever to integrate AI into daily operations. The AI Innovation Center provides the support and expertise needed to navigate this shift and implement strategies that offer long-term value. 

Indonesian businesses can start leveraging this initiative to accelerate their AI growth and shape the nation's future as a global AI leader. AI will not wait, so neither should you. 

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Davids Tjhin is managing director and senior partner at Boston Consulting Group, while Fanly Tanto is the Indonesian country director for Google Cloud.