Indonesian companies are lagging behind their counterparts in Asia Pacific on generative artificial intelligence adoption, according to the PwC’s 27th Annual Global CEO Survey.
Around 53 percent of CEOs in Indonesia report generative AI has not yet been implemented in their companies, compared with 41 percent in the Asia Pacific region.
“In the past 12 months, half of the Indonesian CEOs (53 percent) report that their organizations have not yet implemented generative AI. But, over the upcoming year, about half of Indonesian CEOs expect it to enhance their ability to build trust with stakeholders (57 percent) and to improve product or service quality (56 percent),” said Eddy Rintis, PwC Indonesia Territory Senior Partner, in a statement on Monday.
According to Eddy, the survey found that seven out of ten CEOs believe AI in the next three years will bring increased competitiveness, changes to their business models, and the requirement of new skills from their employees.
However, 73 percent agree GenAI will increase cybersecurity risk, compared to 49 percent in Asia Pacific, and 53 percent agree it will spread misinformation, compared to 44 percent in Asia Pacific.
Despite threats and concerns, most CEOs globally, including 93 percent in Indonesia, have applied changes to their business models to keep up with the changing landscape. These changes are yet to have a positive impact on how CEOs see the future of their business, with 56 percent in Indonesia unsure what their company will look like in the next decade.
Most Indonesian CEOs believe that regulatory issues (75 percent) pose the biggest challenge in 2024, aligning with the Asia Pacific trend (66 percent). The regulatory environment takes the lead because CEOs feel less control over it compared to other challenges they can influence.
Following closely, technological capabilities (63 percent) rank as the second obstacle. Additionally, a lack of skilled labor and competing operational priorities are grouped as the third challenge, constituting 61 percent of the barriers.
PwC surveyed 4,702 global CEOs, including 1,774 in the Asia Pacific and 75 in Indonesia, from Oct. 2, 2023, through to Nov. 10, 2023. The global and regional figures are weighted proportionally to the country’s nominal GDP.
