Understanding the Impact of Artificial Intelligence (AI) on Traditional Businesses in Indonesia

Muhammad Asif Khan

doi:10.56741/jmsd.v3i02.584

Authors

Muhammad Asif Khan
Muhammad.khan001@binus.ac.id
Binus University https://orcid.org/0009-0007-5119-1723

DOI:

https://doi.org/10.56741/jmsd.v3i02.584

Keywords:

Artificial Intelligence, Competitive Advantage, Decision Making, Digital Transformation, Opportunities, Traditional Businesses

Abstract

The integration of artificial intelligence (AI) in Indonesia's business landscape has ushered in significant changes, presenting challenges and opportunities for traditional businesses across various sectors. Understanding the implications of AI is crucial for navigating these changes effectively. This study aims to investigate the transformative impact of AI on traditional Indonesian businesses, specifically analyzing the opportunities and challenges associated with AI adoption and its implications for business strategies and operations. Utilizing a qualitative method, this study examines the influence of AI technologies on traditional Indonesian businesses. The study compiles data from academic literature, industry reports, and real-world case studies to analyze the intricate dynamics between AI technologies and human behavior. The findings reveal that AI integration offers numerous opportunities for traditional businesses in Indonesia, such as enhanced operational efficiency, improved customer experience, and innovation potential. However, significant challenges, including high implementation costs, data privacy concerns, and the lack of skilled AI talent, hinder widespread adoption. Despite these challenges, businesses that successfully navigate them can gain a competitive advantage in the digital age. This study contributes to the existing literature by providing fresh insights into the transformative impact of AI on traditional Indonesian businesses. It synthesizes recent research findings and case studies, offering valuable guidance for businesses aiming to leverage AI for strategic advantage.

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Author Biography

Muhammad Asif Khan, Binus University

is currently a distinguished faculty member at Binus University, contributing his expertise to the Department of International Business Management and making a significant impact in the academic arena. Before embarking on his academic journey, Dr. Khan built a robust professional background, amassing rich experience over nearly a decade in the corporate and educational sectors. (email: Muhammad.khan001@binus.ac.id).

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