Jakarta. Use of generative artificial intelligence is expected to be a boon for the Indonesian economy as the Southeast Asian country seeks to be among the world’s fourth-largest economies by its centennial in 2045.

All eyes are now on generative artificial intelligence (AI). AI could potentially unlock up to $243.5 billion in production capacity. This is equivalent to almost a fifth of Indonesia’s gross domestic product (GDP). Studies show that the generative AI market in Indonesia could grow at a 24.4 percent CAGR (compound annual growth rate) in 2023. AI is also forecast to contribute up to $16 trillion to the global economy by 2030.

As Indonesia inches closer to 2024, so do the trends in generative AI. 

According to tech giant IBM, people who use AI will likely replace those who don’t. GenAI is expected to affect all levels and roles within an organization. As many as 77 percent of entry-level workers will experience a shift in their roles in 2025. The same goes for one in four senior executives. Three out of four chief executive officers believe that organizations with the most competitive GenAI have a competitive advantage. However, over 60 percent of organizations have not developed a consistent, enterprise-wide approach to generative AI.

“As Indonesia navigates its digital journey, it is crucial for this country to build strategic partnerships across all public and private sectors to translate the opportunities provided by AI as a meaningful action, harnessing it to drive economic recovery, bridge digital gap, and spur a sustainable growth for the country,” stated Roy Kosasih, President Director, IBM Indonesia.

IBM has launched Watsonx to help Indonesian businesses harness generative AI, which will eventually help spur the Indonesian economy. The platform encompasses three core components, watsonx.ai, watsonx. data, and watsonx. governance. 

Watsonx.ai studio is dedicated to new foundation models, generative AI, and machine learning. watsonX.Data is a fit-for-purpose data store that is built on an open lakehouse architecture. IBM also launched Watsonx. governance to help organizations implement AI responsibly and prepare for upcoming regulations across the globe.

IBM reported that the use of its AI platforms helped businesses increase their human resource capacity by 40 percent. About 90 percent of customer inquiries are handled by AI assistants. As many as 60 percent of software development content is generated automatically by AI.

IBM also seeks to help Indonesia narrow its AI talent gap by opening up the IBM Academy for Hybrid Cloud and AI in Nongsa Digital Park, Batam. The academy offers courses on AI, hybrid cloud, and cybersecurity from IBM SkillsBuild and Red Hat programs. The curriculum will also be made available for all university students in Indonesia via the government’s Kampus Merdeka initiative. The academy seeks to be at the forefront of tech and professional skills development in Southeast Asia. 

IBM recently vowed to provide AI training for 2 million students by end-2026. The company is expanding its AI education partnership with universities across the globe, among others.

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