AI Investment Doesn't Automatically Generate Profit, IT Foundation is Key

Adoption of artificial intelligence (AI) is increasing in Indonesia, but investment in the technology does not automatically make a company profitable. According to data from PwC, only about 10% of CEOs in Indonesia have successfully increased revenue while simultaneously reducing costs through AI. Hanief Bastian, Technical Manager of ManageEngine Indonesia, stated that the key differentiator is not the sophistication of the AI model itself, but the readiness of the company’s IT foundation, data governance, and the ability to integrate AI into business processes. He noted that most companies only achieve efficiency gains in the early stages, whereas the successful 10% use AI as a two-way margin engine that drives both cost reduction and revenue growth.

Bastian highlighted that a common mistake is adopting AI without a proper assessment. Companies often follow trends without ensuring that the use case provides clear business value, which can result in AI merely adding operational costs. He stressed that AI requires significant infrastructure investment, including high-specification servers, so organisations must verify their technological, process, and human resource readiness beforehand. Without a strong IT foundation, measuring and optimising the return on investment (ROI) becomes difficult.

Regarding ROI, Bastian suggested that companies should not only look at direct financial returns but also consider metrics such as time-to-value, productivity improvements, and potential losses prevented. For instance, in cybersecurity, AI can accelerate incident detection and response, thereby reducing potential financial damage from downtime or recovery. He dismissed the notion that AI hinders innovation, arguing instead that it expands imagination and helps generate new ideas for business improvement, provided the implementation is targeted and the foundation is solid.