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View all search resultsBusinesses seek AI regulatory clarity as caution hampers investment
Some technology firms deliberately avoid using personally identifiable information in their AI models to reduce compliance risks, despite the limitations this places on their ability to improve operational efficiency.
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A message reading “AI artificial intelligence“, a keyboard and robot hands are seen in this illustration taken on Jan. 27, 2025. (Reuters/Dado Ruvic)
T
echnology firms have warned that regulatory uncertainty in Indonesia is hampering their investment decisions, particularly for those developing artificial intelligence-based products and data-driven platforms, pushing them to be more cautious in pursuing innovation and allocating capital.
Rushil Mohan, the founder of logistics technology start-up Pidge, said the lack of clear guidelines forced companies to be more cautious, especially in handling personal data and building predictive models, as the firm explores expansion in Indonesia.
“When you don’t have clarity, you have to choose to be safe, and safety can often be at odds with innovation,” he said to The Jakarta Post on Feb. 5.
“If there were clearer guardrails and guidelines, what kind of regulation, what kind of models and what kind of outcomes are allowed, supported and encouraged, it would allow us to double down, triple down on our investments into AI.”
Pidge deliberately avoids using personally identifiable information in its AI models, relying instead on aggregated and anonymized data.
While this reduces compliance risks, Mohan said it limits the company’s ability to generate hyper-personalized recommendations that could significantly improve operational efficiency.
“The biggest fear that any company has is that you invest so much in a line of business, in a product, and by the time it reaches the market, governments put a shutdown on it, or regulation puts a shutdown on it,” he said.
