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View all search resultsAI to add $366 billion to GDP in next decade
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rtificial intelligence could add US$366 billion to Indonesia’s gross domestic product in the next decade and almost $1 trillion in added GDP across Southeast Asia, a recent study has shown.
The study by consulting firm Kearney and Singapore-based investment firm EDBI says that 80 percent of respondents are still in the early stages of AI adoption, lagging two to three years behind the United States and China.
“Just like in many countries, financial services and retail have been the early adopters of AI in Indonesia. We are also seeing a lot of potential in the logistics and supply chain sector,” Kearney senior partner Soon Ghee Chua said in a press briefing on Thursday.
The study pointed out that Indonesian e-commerce platform Tokopedia was able to increase the total number of transactions by 202 percent and increase revenue by 179 percent month-over-month after implementing AI-based product recommendations.
AI usage in Southeast Asia is mainly for marketing and sales, followed by supply chain and manufacturing. However, the finance industry has also used AI to decrease fraudulent transactions while human resources utilizes AI to increase candidate matching.
Thirty-three percent of respondents said that they were reluctant to implement AI over concerns of employee backlash from job displacement, making it one of the challenges of AI adoption.
