Benefits Of AI And 5G

For Industrial Digitalization In Indonesia

Jakarta, CNBC Indonesia –Technologies such as generative artificial intelligence (AI) and 5G can not only be utilized by ordinary consumers, but also various industries, including manufacturing. However, companies cannot just jump in to adopt these two technologies.

According to McKinsey research results, generative AI can generate an economy of USD 7 trillion globally. Meanwhile, the manufacturing industry is predicted to contribute 25% of Indonesia’s total gross domestic product in 2030.

“I am very confident that Indonesia will be able to capture some of the USD 7 trillion, especially for manufacturing,” said Bo Li, Associate Partner of McKinsey & Company, at the Ericsson Hackathon 2024 press conference in Jakarta, Wednesday (10/23/2024).

“So this is very important. This is a very important sector to pay attention to and continue to innovate,” he continued.

Li explained that the adoption of digital solutions such as AI and 5G can increase company productivity by 40-70%. These two technologies have many use cases in the manufacturing industry, from the production sector, supply chain, warehouse, to research and development to marketing.

However, Li emphasized that businesses must have a clear roadmap before carrying out digital transformation. This was also agreed by the General Chairperson of the Indonesian Industry Digital Transformation Council (WANTRII), Ir Fadli Hamsanini. Li explained that the adoption of digital solutions such as AI and 5G can increase company productivity by 40-70%. These two technologies have many use cases in the manufacturing industry, from the production sector, supply chain, warehouse, to research and development to marketing.

However, Li emphasized that businesses must have a clear roadmap before carrying out digital transformation. This was also agreed by the General Chairperson of the Indonesian Industry Digital Transformation Council (WANTRII), Ir Fadli Hamsanini.

On the same occasion, Fadli explained that the integration of AI in manufacturing requires a well-established infrastructure. He gave an example of finding a company that was aggressively carrying out digital transformation but forgot about its infrastructure so that it finally stagnated and had to start over.

“You need to prepare from now because the digital transformation journey will take you to a stage that requires fast (connections), which will require bandwidth, which requires slicing, which requires latency, which is the enabler and the answer is 5G,” explained Fadli.

SOURCE : CNBC INDONESIA