The Indonesian GenAI report explores AI adoption in the country’s financial sector, while offering advice for leaders on its integration.
Southeast Asian venture capital firm AC Ventures has launched an artificial intelligence (AI) – focused report, “Harnessing the Power of (Gen)AI in Indonesian Financial Services”, in tandem with Boston Consulting Group (BCG), its tech build unit, BCG X, and the Indonesian Chamber of Commerce and Industry (Kadin Indonesia).
Central to the report’s findings is a strategic, multilateral “Deploy, Reshape, Invent” framework, guiding Indonesian financial institutions on how to effectively integrate GenAI to maximise its benefits. The study drew from a survey of 41 financial institution business leaders and interviews with five fintech startups.
The GenAI report unveils critical insights into its adoption and impact across Indonesia’s financial services sector, including strategic recommendations for business leaders in the private sector for implementing the technology into their products and operations.
The report also features key advice from Kadin Indonesia for the government as it transitions to a new administration and pursues the prospect of sovereign AI development for national interests. The report summary indicates:
- 51% of Indonesian financial institutions are focusing ondeploying GenAI for everyday tasks, while 27% see great opportunity in inventing new products and services.
- 49% of business leaders in Indonesia’s financial sector prioritise GenAI to enhance customer service, with 34% already seeing tangible benefits from its deployment.
- 44% of respondents recognise significant potential in GenAI for enhancing risk assessment in microlending through innovative data sources and improved analytical models.
- 61% are confident they have strong technological readiness with established data and tech stacks for GenAI.
Pandu Sjahrir, Founding Partner at AC Ventures and Department Head of Economic and Financial Technology at Kadin Indonesia, said, “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.”
Major banks and financial institutions in Indonesia are looing to advance related initiatives from pilot stages to scalable projects, aiming to widen financial access and inclusion but also ensure compliance with Indonesia’s rigorous Personal Data Protection Law. Yet despite the enthusiasm for GenAI’s capabilities, many Indonesian financial institutions are still in the early stages of implementation.
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. Our
findings show that the technology has been rapidly adopted by both large financial
institutions and fintech firms. However, many initiatives are tech-led pilots that are yet to
translate into real business value at scale.”
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