From Data to AI: Powering Growth through Data in the age of Gen AI

According to the preliminary results of the AIBP Innovation survey, around 20% of Indonesian enterprises report that Generative AI is significantly transforming their business, compared to around 18% of overall ASEAN enterprises. This highlights an opportunity for Indonesian businesses to enhance their understanding of AI and accelerate their AI initiatives to unlock new business opportunities.

Despite the current lower impact of Generative AI, a growing momentum in AI adoption is observed among Indonesian enterprises. Notably, around 58% of Indonesian businesses are developing an AI-focused strategy and roadmap.

The rapid advancement of artificial intelligence (AI) has ushered in a new era of innovation and growth for businesses across industries. This discussion highlights some considerations and the benefits it offers to enterprises around

• Enhancing Customer Insights and Personalisation

• Enabling Operational Efficiency and Data-Driven Approaches

• Fostering Data Collaboration and Standardisation

Enhancing Customer Insights and Personalisation

By leveraging data to understand customer behaviour and preferences, businesses can deliver personalised experiences that boost engagement and loyalty. These AI-driven insights enable companies to create more meaningful interactions, improving customer satisfaction and fueling revenue growth.

"Enhancing customer insights for personalization can sometimes become overly direct when using tools to track behaviour. Often, businesses view data merely as metrics rather than meaningful insights. For instance, if revenue drops or there is churn among active users, the underlying reasons may not be clear. We aim to deliver more meaningful insights from this data."

• Krisna Parahita , VP of Product and Data Analytics, LinkAja

"Many cases focus on operational costs, which is valuable, but what do we do with those extra resources? We need to consider how to extend our product and generate value beyond just cost savings. It's crucial to ensure that our efforts impact all employees and customers. The goal is to revolutionise how they do business with us, not just achieve an extra 5% efficiency. While cost optimisation is essential, we must also find meaningful ways to utilise those resources."

• Bima Tjahja , SVP Data, Bukalapak

"In the highly competitive skincare and cosmetics industry, consumer characteristics vary significantly, necessitating a differentiated approach to shoppers. It's crucial for us to tailor our strategies and promotions to resonate with consumers and understand their preferences deeply. This focus on consumer insights is a key topic within our company discussions. While CRM is important, our priority lies in retaining and increasing the consumption of existing customers."

• Dudi Susanto , Master Data Management Group Head, ParagonCorp

At the same time, over 80% of IT and data professionals identify data quality and availability, data privacy and security as significant barriers to AI adoption. Addressing these challenges will be crucial for accelerating AI-driven innovation in Indonesia.

Enabling Operational Efficiency and Data-Driven Approaches

By utilising real-time data, businesses can optimise processes, enhance decision-making, and quickly adapt to market changes. This data-driven focus enables smarter resource allocation and streamlined operations, all crucial for staying competitive and scaling effectively in AI-powered environments.

"We rely heavily on data in two key areas. First, for supply-demand matching: when there's a spike in orders, we must plan capacity for the middle and last miles. The faster we obtain new data, the better we can react and reduce future backlogs. Second, regarding pricing, we currently lack a granular view of costs for each route. By breaking down costs at a brand level, we can better cater to different customers and geographies."

• Kevin Adinata ,BI Head, SICEPAT EKSPRES INDONESIA

Fostering Data Collaboration and Standardisation

By establishing common frameworks and protocols, organisations can seamlessly share and integrate data, enhancing decision-making and innovation. Standardisation ensures data is interoperable, secure, and compliant with evolving regulations, driving more effective collaboration and powering growth in AI-driven environments.

"The challenge from clients often centres on whether there is any research standardisation for clean group technology or similar technologies. This is a common concern. Standardisation can greatly aid us, especially with upcoming data privacy regulations taking effect in October. A key challenge in our business is ensuring that we comply with these regulations in our databases."

• Johanes Siregar , API Business Development & Partnership, Telkomsel

We’ve heard about AI's transformative potential for businesses in Indonesia. But to fully harness the power of AI, organisations must prioritise strategic planning, data quality, and compliance. As Indonesian enterprises continue to evolve in this digital landscape, they should remain proactive in their AI initiatives.

Stay tuned for our upcoming report, "From Data to AI: Laying the Groundwork for Indonesia’s Digital Future," where we will delve deeper into actionable insights and strategies that can help businesses in navigating the complexities of AI adoption and implementation. Get your complimentary copy of the report when it launches this November 2024 here