Indonesia's Manpower Minister Yassierli has urged businesses to use artificial intelligence (AI) in a way that supports workers and improves productivity.
He said industries using AI more widely have seen faster productivity growth. However, he stressed that AI adoption does not automatically mean large-scale job losses, HRM reported.
“However, the use of AI tools does not necessarily mean a drastic reduction in the workforce,” he said.
According to Yassierli, AI can also create new business opportunities and increase demand for certain skills. Employees will need knowledge of their own roles as well as the ability to use AI in their daily work.
“AI adoption is not limited to hiring experts or turning AI into merely a digital assistant,” he said.
Redesigning work
Yassierli said businesses can see much bigger productivity gains when they change how work is organised.
Using AI mainly as an operational assistant can improve productivity by around 5% on average. But if companies redesign workflows and standard operating procedures and then train employees, the increase could reach 30% to 40%.
He also cited a Boston Consulting Group study of 1,250 organisations. It found that 60% of AI pioneer organisations had yet to see significant business benefits, partly because of poor implementation strategies.
“Therefore, technological transformation needs to be positioned as part of a strategy to strengthen competitiveness while also supporting sustainable employment decisions,” he said.
Four principles
Yassierli said Indonesia's approach to AI adoption should follow four principles.
“First, AI is used to strengthen human capabilities, not merely replace employees. Second, its implementation is carried out with the involvement of employees and labour unions,” he said.
The third principle requires human oversight when AI makes decisions that affect workers' rights, safety or job opportunities.
The fourth is that no employee should be left behind, including older workers.
Supporting AI adoption
The Manpower Ministry is also working on initiatives to help businesses adopt AI responsibly.
“To support responsible AI implementation, the Manpower Ministry is running an AI-based productivity pilot project, developing an official guide for AI implementation in the workplace, and preparing a collaboration platform for organisations to exchange knowledge and share best practices,” he said, reported Antara.
The initiatives are aimed at helping businesses use AI to improve productivity while giving employees the skills and support needed to adapt to changing work.