Indonesia – More than half (51%) of financial institutions in Indonesia are prioritising the deployment of artificial intelligence for daily operations, with respondents citing preference for ‘deploying’ and ‘inventing’ over ‘reshaping’ in-house processes. This is according to the latest study conducted by AC Ventures, Boston Consulting Group, BCG X, and the Indonesian Chamber of Commerce and Industry.
In the study, it was also revealed that 27% of the respondents believe there is a great opportunity in inventing new products and services powered by GenAI. However, another BCG study found that although 85% of financial institutions see GenAI as a highly disruptive technology, only 18% have a clear strategy for in-house implementation.
In Indonesia, approximately 61% of financial institutions are confident in their technological infrastructure necessary for integrating GenAI, particularly in the context of robust data and technology stacks.
Almost half of the sector’s local leaders further stated that they are already using GenAI to enhance customer service, and one-third report they are now seeing tangible benefits. Around 44% of them also acknowledge the potential of GenAI in transforming risk assessment in terms of microlending through more innovative data sources and analytical models.
Additionally, GenAI was also viewed as beneficial in the industry for productivity, rapid lending, fraud management, and hyper personalisation. This implies that major Indonesian banks and financial institutions are moving related initiatives from pilot programs to scalable projects.
It was also noted that many Indonesian financial institutions are still in the early stages of implementation; with 41% of respondents piloting GenAI use and running proof of concepts, scaling these to deliver substantial business value remains a challenge.
On the other hand, only 37% think they have the necessary talent, and upskilling employees to use and interact with AI tools is among the three lowest foundational priorities cited. Around 29% also shared confidence in their operating models for GenAI readiness.
In addition, various calls to action for business leaders were also observed, underscoring the necessity of a strategic, holistic approach to GenAI integration. More specifically, the report cited that Indonesian financial institutions can not only navigate but also lead the GenAI race, revolutionising challenges into opportunities for growth and innovation.
Andy Lees, managing director and partner at BCG X, said, “The potential of (Gen)AI in Indonesia’s financial sector is clear – it can broaden financial access, improve the customer experience, and facilitate the rapid scaling of services, among other possibilities.”
“Financial institutions would benefit from a strategic framework for integration that encompasses everything from technical implementation and governance to operations and talent. Moreover, such a framework allows for outcomes to be clearly measured, ensuring that AI initiatives continuously align with business goals. This will be critical to the delivery of lasting transformation and real business impact,” he also shared.
Pandu Sjahrir, founding partner at AC Ventures and department head of economic and financial technology at Kadin Indonesia, further commented, “With the incoming administration looking to build sovereign AI, there’s a push to enhance regulatory frameworks and accelerate investment in local infrastructure for GenAI development. This is prompting vital discussions on upgrading Indonesia’s energy infrastructure with renewables and sustainable financing.”
“Effective deployment requires sustainable data centres powered by renewable energy, strict privacy laws, and strong public-private partnerships. This report provides strategic guidance for both the private and public sectors while also emphasising the importance of cybersecurity to protect national data assets,” explained Sjahrir.
