Artificial In Indonesia from Economic Perspective

Artificial In Indonesia from Economic Perspective Presented by: Firdausi Firdaus, SH, LLM, PHD CANDIDATE (ICT LAW) Date: June 2, 2022 AI From Economic Perspective - Al has large potential to contribute to global economic activity as Al is not a single technology but a family of technologies (computer vision, natural language, virtual assistants, robotic process automation, and advanced machine learning) thanks to the improvements in computing power and capacity, explosion of data, progress in algorithms. - The pattern of adoption and full absorption may be relatively rapid-at the high end of what has been observed with other technologies. Al could potentially deliver additional global economic activity of around $13 trillion globally by 2030, or about 16 percent higher cumulative GDP compared with today (2018). The limitation of Al might be caused by lack training data, inadequate data sets, risk of bias. - The economic impact may emerge gradually and be visible only over time, although covid has speed up the use and the development of Al significantly - A key challenge is that adoption of Al could widen gaps between countries, companies, and workers. It is possible that digital divide getting worse. 1. Countries may need different strategies and responses because Al adoption levels vary. 2. Companies Al technologies could lead to a performance gap between front- runners on one side and slow adopters and non-adopters on the other. 3. Workers → A widening gap may also unfold at the level of individual workers. Demand for jobs could shift away from repetitive tasks toward those that are socially and cognitively driven and others that involve activities that are hard to automate and require more digital skills. Job profiles characterized by repetitive tasks and activities that require low digital skills may experience the largest decline as a share of total employment, from some 40 percent to near 30 percent by 2030. - Gaps may be widening among firms, workers, and countries, but measures can be taken to manage the transition and steer economies toward higher productivity and job growth. The disruption that comes with Al may lead to some firms leaving the market and some workers losing jobs. There will be major challenges for individuals transitioning to new jobs. - However, if they are given the support they need to develop and refresh their skills (providing adequate education by utilizing Al) and return to the labor market, then resources can be redeployed to more productive parts of the economy. - The economic impact of Al is likely to be large, comparing well with other general-purpose technology in history. However, the productivity dividend of Al probably will not materialize immediately. - This research finds that Al's impact is likely to build up at an accelerated pace over time, and therefore the benefits of initial investment may not be visible in the short term. - At the same time, there is a risk that a widening Al divide could open up between those who move quickly to embrace these technologies and those who do not adopt them, and also between workers who have the skills that match demand in the Al era and those who do not. - The benefits of Al are likely to be distributed unequally, and if the development and deployment of these technologies are not handled effectively, inequality could deepen, fueling possible conflicts within societies. - Patience and long-term strategic thinking will be required. - Policy makers will need to show bold leadership to overcome understandable discomfort among citizens about the perceived threat to their jobs as automation takes hold. - Companies need to work with governments on the mammoth task of skilling and reskilling people to work with Al. - Individuals need to adjust to a new world in which job turnover may be more frequent, they may have to transition to new types of employment, and they are likely to need to continually refresh and update their skills to match the needs of a dynamically changing jobs market. - From Indonesia context, Despite being the South East Asia largest economy, we still have many homework, so it is hope that by utilizing Al fully, Indonesia can overcome their classic issue in particular the wealth distribution gap, slower economic growth, pressure on the state budget, a widening deficit, plunging currency, lack of competitiveness. - With the trend of digital economy and big market in Indonesia, we are hoping that the use of Al technology (Al Start up) can flourish the digital economy including having more and more decacorn like "GOTO" and thousands of unicorns likes OVO, Traveloka, J&T Express, Buka Lapak. - Currently we also already have some Al startups such as: Snapcart, Kata.ai, Bjtech, Sonar, Nodeflux, Bahasa.ai, Prosa.ai, Dattabot, Eureka.ai, AiSensum, AI Startups In Indonesia Name Snapcart Kata.ai BJtech Sonar Platform Nodeflux Application Smart receipts Conversational Al Conversational Al Social Media Monitoring Computing City Jakarta Jakarta Jakarta Jakarta Funding (USD Millions) 14.7 3.5 1.2 0.15 Jakarta N/A Name Bahasa.ai Prosai.ai Dattabot Eureka.ai AiSensum Deligence.ai Application Platform Conversational Al Conversational Al General Big Data Telcom Big Data Robotic Process Automation General Al City Funding (USD Millions) Jakarta Jakarta Jakarta Jakarta Jakarta N/A N/A N/A N/A N/A Jakarta N/A