Pavel Yurovitsky, CEO of KIT Global, a digital marketing agency, highlighted that in a world marked by economic uncertainty and evolving consumer behavior, Indonesian businesses are increasingly turning to AI to reshape their digital marketing strategies.
"The economic landscape is pushing businesses to find cost-effective solutions," he noted in a statement issued on Saturday.
This technological shift is streamlining operations and driving significant growth and innovation, he added.
"AI helps businesses deliver results without overspending," said Yurovitsky, whose client reduced its cost-revenue ratio by up to 30 percent by using AI in targeting and content optimization.
Recent case studies have showcased the immense potential of AI-driven marketing, with some businesses reporting a staggering 547-fold increase in website traffic and a 50 percent surge in conversion rates, the agency stated.
Another example is a major retail brand in Indonesia that successfully utilized AI to optimize its advertising campaigns, achieving significant cost savings without compromising customer reach.
Yurovitsky underscored the importance of real-time personalization, which AI can facilitate by tailoring marketing strategies to individual customer preferences.
However, based on his team's research, Yurovitsky noted that AI adoption in Indonesia is still in the experimental stage.
"Although the MMA Indonesia Report indicates that Indonesian businesses are confident in AI's potential, they remain hesitant due to several challenges," he remarked.
One major obstacle is the difficulty in selecting the right tools due to a lack of understanding about AI implementation. Additionally, the perceived high cost of AI and automation solutions is another barrier for many businesses.
For businesses starting with AI, Yurovitsky recommends beginning with small-scale projects and gradually building internal capabilities, focusing on value-driven metrics rather than adopting AI merely for novelty.
Meanwhile, the Indonesian government is eager to position the country as a destination for AI investment.
Former Minister of Communication and Informatics Budi Arie Setiadi stated on September 28 that AI's contribution to the Indonesian economy is expected to reach US$366 billion by 2030.
"This sector will drive Indonesia's economic growth in the future," he remarked.
AI is also expected to provide solutions for various sectors in developing countries, including education, health, public services, finance, and labor, he added.
"In addition, AI has the potential to increase economic productivity through automation and innovation, enabling MSMEs to compete in the digital era," he said.
However, limited funding and uneven infrastructure development, which hinder essential internet penetration for AI growth, continue to pose challenges.
"Furthermore, the lack of knowledge transfer from AI-developing countries also limits the establishment of effective AI governance in a country," he stated.
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Reporter: Aditya Eko Sigit Wicaksono
Editor: Anton Santoso
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