IBM: Indonesian Business Ready To Adopt AI, Infrastructure And Security Are Still Challenges

Catherine Lian, General Manager and Technology Leader, IBM ASEAN (photo: Dinda Buana/VOI)

JAKARTA - IBM's latest study shows that businesses in Indonesia are ready to adopt artificial intelligence (AI), with 85% reporting significant operational gains and 93% confident in their ability to implement AI.

However, amid the high adoption of AI, AI ethics preparedness lags behind. Only 45% of respondents said they understood how to use AI ethically, and only 24% reported having a clear AI governance process.

In addition, the report entitled 'Unlocking Indonesia's Economic Potential for Future Prosperity' also found that AI 77% of Indonesian business leaders see AI and digital transformation as the country's main growth opportunities.

To that end, 94% of respondents plan to increase investment in sustainability initiatives, with 89% already allocating more funds for green technology in their 2025 budget.

However, infrastructure (84%), cybersecurity (55%), and the lack of digital skilled talent (45%) remain the main obstacle to realizing Indonesia's digital economy ambitions.

"Indonesia is at the forefront of technological innovation and digital advances, and IBM is working with business people and policy makers to promote broad AI-based digital transformation," said Catherine Lian, General Manager and Technology Leader, IBM ASEAN in a media briefing Wednesday, June 4.

Although 83% of respondents are aware of the existing government's initiative to increase labor productivity, 97% are calling for deeper public-private partnerships, especially in AI development and digital skills.

"IBM believes that building a secure digital foundation, bridging the talent gap, and encouraging an ethical national framework for AI through collaboration and infrastructure investment will be a major factor in success," added Catherine.