Turning the Promise of AI Into Reality in 2025: Seizing Opportunities and Overcoming Barriers in Indonesia

• Technology companies should adopt pricing models that reflect customer value and outcomes.
• Businesses must redesign their business models and processes for an AI-first era.
• Companies should focus on specific business needs where AI can deliver tangible and measurable value, ensuring alignment between technology and organizational goals.
• Proactively managing the AI transition is pivotal for companies, ensuring both their organization and customers embrace AI-driven value while fostering adaptability and innovation.
  
• To effectively navigate the regulatory challenges of AI adoption, Indonesian firms should collaborate with regulators to establish flexible frameworks and "regulatory sandboxes" that support innovation while ensuring compliance with data sovereignty and protection laws.

Throughout 2024, new artificial intelligence (AI) capabilities continued to develop at a rapid pace, highlighting the need for technology businesses to reshape, reposition and innovate in a world led by the promise of generative AI (GenAI). AI is now largely accepted as key to future success in virtually every industry, and it is time for technology companies to seize the opportunities to translate the potential of AI into performance, both internally and for customers. This is one of the top 10 opportunities for technology companies according to an EY article, Top 10 opportunities for technology companies in 2025. 

While AI use cases and copilot deployments surged across industries with significant across-the-board investments, many AI projects reached a plateau as companies were not fully prepared for the cost and necessary organization-wide transformation. 

Joongshik Wang, EY-Parthenon Asia-Pacific Leader, also EY Asean Telecommunications, Media & Technology Sector Leader, says: 

“In Asean, technology companies face additional unique challenges, further complicating their ability to fully capitalize on AI advancements. These include uneven digital readiness across the region, stemming from disparities in infrastructure and regulation, and limited access to AI capabilities such as large-scale AI providers and talent. We also observe that the focus of AI projects has shifted from specific AI use cases to the ability to integrate AI while maintaining security and ensuring commercial viability.” 

Tech Companies Can Speed Up Customer AI Adoption by First Transforming Themselves  

Technology companies need to focus on leading by example to demonstrate their own transformation journey - using their own products - to drive a parallel AI-powered reinvention in their own operating model.   

Wang, adds: 

“We often advise clients to adopt a ‘future-back’ approach – focusing on business-centric solutions rather than technology-led initiatives. Technology investments should align with the company's strategic business objectives and long-term vision. Strategic prioritization is essential, which is where the EY.ai Value Accelerator comes into play. This approach guides clients to identify value-based use cases, conduct a thorough assessment of internal capabilities and analyze the cost of execution. A cost-benefit analysis that considers the impact on EBITDA (earnings before interest, taxes, depreciation and amortization) margins ensures that investments are both strategic and financially sound.” 

Unlocking Indonesia’s AI Potential: Balancing Growth, Innovation, and Regulation 

Indonesia's journey toward AI adoption offers a compelling narrative within the ASEAN market, showcasing significant potential for growth in a large and diverse economy. Businesses across various sectors face challenges related to efficiency and unique value propositions that can be addressed through AI integration. The impact of AI can be viewed from two perspectives: it has the potential to bridge the gap between rural and urban markets by enhancing efficiency for underserved communities, while also risking a widening divide due to the high costs associated with rural implementation. 

Anugrah Pratama, EY-Parthenon Indonesia Partner states: 

“To maximize the benefits of AI, businesses must adopt a strategic approach, focusing on investments that yield tangible, measurable value for both themselves and their customers. This involves identifying specific problems where AI can deliver results, prioritizing projects with quick returns on investment, and steering clear of overly ambitious, high-risk initiatives. Companies should leverage their existing data to inform AI solutions embedded in their processes, ensuring efficient resource use and a higher likelihood of achieving meaningful outcomes.” 

Proactively managing the transition to AI is essential for success. Businesses must prepare both customers and their organizations to embrace the new value propositions that AI offers, fostering a culture of adaptability and innovation that will enable them to fully realize the benefits of this technology. However, firms in Indonesia also face challenges related to compliance and regulatory frameworks, including the need to balance extensive data processing with data sovereignty and local regulations. 

Anugrah, emphasizes: 

“To navigate these complexities, industry stakeholders should collaborate with regulators to create "regulatory sandboxes" that facilitate AI experimentation, particularly in sectors like finance. Establishing a national AI strategy that includes ethical guidelines, data governance principles, and investment incentives will be crucial for fostering trust and promoting AI development and adoption across all sectors in Indonesia.” 

The Full List of Top 10 Opportunities in Technology for 2025 Are: 

1. Deliver on the promise of AI
   
2. Drive growth and optimize customer experience through an agentic AI future 
   
3. Adopt outcome-based pricing models to supplement subscription and consumption offerings
   
4. Demonstrate the power of an AI-first operating model  
   
5. Focus on data strategy and right-sizing cloud investments 
   
6. Empower your workforce of the future with innovative training 
   
7. Improve strategic decision making by embedding tax and legal functions at the outset of AI transformations
   
8. Inject AI into cyber defenses
   
9. Move beyond contingency funds to free up capital to invest in emerging technologies 
   
10. Shape the agenda with incoming regulators 

The full report with the top 10 opportunities can be found here.