Development
and Threats of Artificial Intelligence
in Industry and Workforce
Francisca Romana Nanik Alfiani
Universitas Borobudur, North
Jakarta, DKI Jakarta, Indonesia
Email: [email protected]
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ABSTRACT |
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Development and
Threat, Artificial Intelligence, Industry, Workforce. |
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The abstract explores the transformative impact of Artificial Intelligence (AI) on global industries, highlighting its role in enhancing
efficiency and innovation while also posing challenges
such as job automation, skills gaps, data misuse, and ethical concerns.
Drawing from the Global Risk Report 2024 and recent regulatory actions by the
European Union and
Indonesia, the abstract discusses the pressing need for AI governance. However, it lacks
specificity in articulating
the study's objectives and scope, and could
benefit from providing concrete examples or statistics
to support its claims. A clearer organizational structure and citation of relevant
sources would enhance the coherence
and credibility of the abstract.
Furthermore, while emphasizing the importance of human control over AI, the abstract could offer a more nuanced conclusion that underscores the significance of the study's
findings in achieving this goal. |
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INTRODUCTION
The
development of Artificial Intelligence (AI) technology has brought significant changes in the field of
industry and labor. AI has been a catalyst for transformation
in a very significant area of the industry
Another convenience that AI provides is efficiency
and automation in everyday life. Virtual assistants like Siri, Google Assistant, and Alexa have become part
of the routine,
including helping to find information,
manage schedules, and perform other
tasks
However, behind its benefits,
AI also carries threats that need
to be wary
of. One of the major threats
is job loss
as AI automation replaces
human workers in some areas, such as manufacturing and customer service. While AI can increase
productivity by taking over routine and repetitive human work, it also
adds social inequality and reduces employment for some
Other threats related to the development
of AI for military purposes, such as the AI arms race and
its potential use in armed conflict,
have increased with the use
of AI in military environments. The development of autonomous weapons
can reduce human influence in matters of life and
death, incre
AI
also poses another threat, namely disinformation and disinformation (hoaxes), due to
the increasing prevalence of AI content
creation, which is difficult to
distinguish from human content and verify.
Ethical issues in AI development, where AI algorithms are based on data collected
from various sources. If the data contains discrimination, AI algorithms can also amplify that
discrimination, impacting unfair or discriminatory
decision-making in the hiring process, law enforcement, and financial systems.
Therefore, AI developers need to ensure
that the datasets used in AI training reflect population diversity fairly.
In
facing the threat of AI, cooperation
between governments, research institutions, the technology industry, and civil
society is needed. Responsible AI development requires transparency, public participation, and multidisciplinary studies involving experts from various fields,
including ethics, law, social, and
technology. In addition comprehensive AI regulation in the form of
voluntary regulations (ethics) and coercive
regulations (laws and regulations) can control AI development and minimize the
risk of AI threats.�
METHODS
This research uses a qualitative approach with a descriptive method
RESULTS
Artificial Intelligent
Artificial Intelligence (AI) is a computer with characteristics
like the human brain, which can
think critically, make decisions, and increase productivity.
The foundation of AI is the human view
in the rules of machinery for
simple to complex work. These
views converge due to intellectual
activity, analytical studies, logic and observation. AI assignments include control, robotics, control mechanisms, computing, scheduling, to data mining. Alan Turing defines AI as a system that acts
like humans, is a combination of computer science
and big data to solve problems.
The basic goal of the emergence
of AI is to provide an
automated decision-making mechanism based on raw data collected
by humans, so that it
will save more time and
effort. AI optimizes the processes needed
to minimize routine work, replaced
by the use
of different algorithms. AI technology has been used in a variety of fields,
including business, healthcare, education, and more. AI encompasses
a wide range of technologies, including Machine Learning, Neural Networks,
Natural Language Processing,
and Computer Vision. In some cases, AI can even perform
tasks that normally require human intelligence, such as facial recognition, natural language processing, and decision-making. Furthermore ,
AI has shown its strength in many aspects of life,
including industry. The use of
AI in the global industrial
sector is growing rapidly at this time.
Opportunities and Threats of
Artificial Intelligence
The Use of AI in
Industry
Based on the State of AI in 2022, released by McKinsey,
the industrial sectors that use
AI the most for product development
are the financial, financial services and banking industries.
AI is used to improve the
quality of their products and services. In addition, professional services, telecommunications/high-tech, healthcare, retail/consumer products. AI is used to
design new products, analyze customer service, segment customers, improve product quality, and make
business predictions. In general, AI is used to optimize
operational activities. In general, McKinsey found that the trend
of AI adoption in the industry will
likely strengthen in the next few
years. The AI referred to in this report
is all technologies
that can carry out cognitive
functions related to the human mind,
such as language understanding and cognitive functions related to physical
activity, such as robotic automation and manufacturing equipment.
AI gave
birth to this technology, which is very
important and needed by various
industrial sectors, such as virtual reality, live streaming applications, predictive analytics, and drones, to drive
animation. The positive impact of using
AI on various industrial sectors is the optimization
of productivity, speed, accuracy, the efficiency of time, labour
and cost. Therefore, various Indonesian industrial sectors have adopted AI, including the financial
industry, financial services, health banking, trade, manufacturing, agriculture, logistics, transportation, and public services
by the government
and the private
sector.
AI
has also been adopted in the oil and gas industry,
encompassing exploration to production and
maintenance, logistics management, monitoring supply chains, planning fuel and
equipment deliveries, predicting fuel demand at production
sites, analyzing data from wells and
production, analyzing data from oil and
gas production to forecast future production and plan more effective investments and operations.� Overall, artificial intelligence has great potential to bring
positive changes to Indonesia's oil and gas industry.
Using AI, companies can improve efficiency,
effectiveness, and work safety at
production sites. In addition, AI can help in more informed
decision-making and improve logistics management in this industry.
In addition
to the above
benefits, the impact of the
emergence of AI is digitalization and automation
in work processes in various industries. Work that used
to be done
manually can be done digitally.
Jobs involving repetition or data use can be
completed by entering a work order. One example is using
CHATGPT to create campaign briefs
for digital marketing.
AI
also opens up new opportunities
to solve workloads automatically. The rapid development of technology has produced new fields
of science, one of which
is digital engineering. Quoting from the
Idaho National Library,
Digital Engineering describes a holistic
approach to designing a complex system: Using models/data
instead of documents, integrating data across models, and the culture
change across project teams to
realize significant risk reduction on construction cost and schedule.
The
world-class companies that have adopted
AI include Alibaba Group, Alphabet and Google, Samsung,
Microsoft, Facebook, Instagram, Twitter, Netflix, Coca-Cola, Domino's, Mcdonald's, Unilever, American Express, Mastercard,
Harley-Davidson, Uber, BMW, Tesla, Volvo, GE, SHELL and Siemens. Data from McKinsey, Kearney, and CSET in 2023 shows the contribution of AI to Gross
Domestic Product (GDP) in
2030 is predicted to reach USD13 trillion globally, USD1 trillion for the
ASEAN region, and USD 366 billion
in Indonesia. The projected contribution
of AI to GDP in 2030, due to the
large exposure from the public
to the use
of AI, as quoted by McKinsey and Company in 2023, shows that 79 per cent of people
are exposed to generative AI in their daily lives.
IBM
Global Adoption Index data for
2022 shows 35 per cent of global companies have utilized AI, and 42 per cent of companies are exploring the use
of AI. Quoting from TechJury in 2023, 77 per cent of features
in people's devices utilize AI.
The Negative
Impact of AI
A
report by the Institute for
the Future of Work in collaboration with Warwick Business School and Imperial College London in 2024 found that new technologies,
including trackers, robots and AI-based
software in the workplace, adversely affect the quality
of human life. Conversely, using information and communication technology (ICT) such as laptops, tablets, and instant
messaging in the workplace will likely positively impact well-being.
The
biggest negative impact of AI is
the potential for data breaches. This is because
AI systems require large amounts of
data to function effectively. Such data often includes sensitive personal information.
If it falls into the hands
of bad guys, it can lead
to identity theft, financial loss, and other
dangerous consequences.� Another concern is the
bias that could be embedded in AI algorithms. These algorithms are often trained with historical
data that reflects societal biases and prejudices, leading to discriminatory
results. For example, AI systems used for
employee recruitment may discriminate against specific demographic categories, such as women or
people of colour, based on
past hiring patterns. The use of AI in decision-making processes has raised ethical concerns, especially in sensitive areas such as health
and law enforcement.
AI algorithms will only produce fairness
as somewhat as the data used to train
them, which can lead to
discriminatory results and less accountability.
The presence of AI can drastically change the price
structure, which will certainly affect the business
model and price of a product/service.
The
impact of AI developments can cause companies to redefine the
value proposition
of their business. Some things that need
to be reviewed
include the reason for the
existence of a business, target customers, products, positioning, pricing, and customer
support activities. The emergence of AI can make an
established product obsolete.
The
dangers of artificial intelligence are not just hypothetical; there are vivid examples of businesses
and industries being negatively affected by AI. In 2016,
Microsoft launched a chatbot
called Tay on Twitter. Within 16 hours, the bot was shut down
for destructive and offensive tweets.
This incident demonstrates the potential for AI to mimic and
amplify harmful human behaviour if not adequately controlled and monitored
Another example is the
use of AI in the criminal justice
system. Studies have shown that
AI algorithms used to predict recidivism
rates often exhibit racial bias, resulting in harsher penalties for people
of colour. This issue seriously
threatens the fairness and integrity
of the judicial
system.� Aside from the
real dangers and consequences, the ethical implications of AI cannot be
ignored. As AI becomes more pervasive in our daily lives,
it has the potential to influence
our values, beliefs, and social
norms. For example, developing autonomous weapons raises serious ethical questions about using AI in warfare and potentially losing human control.
In addition, using
AI in surveying and tracking raises concerns about privacy and personal freedom. Regarding privacy, AI is trained using large
data sets that could contain users'
personal data. The use of
AI technology in collecting
and analysing personal data
raises concerns about user privacy,
facial recognition systems, the risk
of misuse of personal data, and the violation of
personal data protection principles.
In some countries, AI is even used
to assess an individual's behaviour based on his or her
activities, consequently limiting access to public services
for that individual. Irresponsible use of AI will also
cause other ethical and digital security problems related to transparency
in managing, controlling, monitoring, and interpreting data due to the black
box nature of AI, the potential
for algorithm manipulation in the form of evasion
models by providing incorrect input data or improper
AI decision making can produce wrong or
even dangerous output. This is
because the characteristics of the black box
can be misused
by irresponsible parties to discriminate
against certain groups with potential
biases, hallucinations, and others produced
by algorithms. The application of AI that encourages massive use of
data also has the potential to cause
the spread or disclosure of
sensitive information of a person into the public domain, resulting in privacy violations.
Job loss, and automation
under AI can cause concern related
to job loss.
AI could potentially replace specific jobs with machines
that can act like humans.
Citing the World Economic
Forum (WEF) report entitled
Future of Jobs 2023, it is estimated
that there will be job additions
estimated at 83 million and job
reductions of 69 million in the next five
years. The decline occurs due to
changes in the labour market and
the adoption of AI and ChatGPT
technology. Thus, 14 million jobs, or
2 per cent of the total current jobs, will be
lost by 2027. The report predicted
the labour market decline would be greater
in two sectors. First, supply chains and
transportation. Second,
media, entertainment, and sports. Smaller disruptions will be experienced by the manufacturing
industry, including retail and wholesale consumer
goods. On the other hand, clerical
and secretarial jobs such as bank tellers, postal services, cashiers, ticket guards, and data inputters will drop quickly. Meanwhile, in terms of sector, large-scale
job growth is expected in education, agriculture, and digital trade. Some increasingly needed jobs are vocational education teachers, e-commerce experts, digital transportation experts, and digital marketing experts. In contrast, the sectors
that experienced the most job
decline were administration
and workers in security, factories, and traditional trade. The ability to think analytically
and creatively remains the primary
ability for workers in 2023.
AI
also poses another threat, namely disinformation and disinformation (hoaxes), which are caused by the
increasing prevalence of AI content creation
that is difficult
to distinguish from human content so it is
difficult to verify. In the Global Risk Report 2024, the WEF revealed that foreign and domestic
parties alike will take advantage
of AI-created
disinformation and disinformation, further widen social and
political inequalities in a
country, especially as some countries enter the political
year, and nearly three billion
people in various countries will go to the
polls to elect their leaders,� such as in
Indonesia, India, Bangladesh, Mexico, Pakistan, the
United Kingdom, and the United States. Economic players predict the risk of
widespread use of disinformation by AI over the next two years,
and its spread,
including cyber insecurity, could undermine the legitimacy
of the newly
elected government. The concern is the
occurrence of riots caused by
violent protests and crimes in the
form of racial
hatred, civil confrontation and terrorism. United Nations (UN) Secretary-General Antonio Guterres
at WEF 2024 in Davos also highlighted the risks of
AI impacts, including human
rights, privacy and society.
Government,
Company and Worker Readiness to Face
AI
With a population of more
than 270 million, Indonesia
is a vast market for the
technology industry, including AI. Based on data published by Datareportal in 2023, as of the beginning
of 2023, it is reported that
there are (i) 212 million
internet users in Indonesia (with
internet penetration of 77 per
cent); (ii) 167 million social media users (equivalent to 60 per cent of the
total population); and
(iii) 353 million active cellular connections (equivalent to 128 per cent of the
total population). The survey
conducted by Ipsos of 22,816 Indonesian adult population in the May-June 2023 period also found
that 75 per cent of respondents are excited about the
presence of AI products and services
and 78 per cent of respondents believe that AI products and services
have more advantages than disadvantages. The use of AI technology is believed to
increase productivity efficiency, and encourage innovation. However, based on the Global AI Index 2023 published by Tortoise
Media, Indonesia is ranked
46th out of 62 countries measured based on a country's
AI capacity to a country's population or economy and
comparisons with other countries. Oxford Insight also compiled
the Government AI Readiness Index 2023, which ranks 193 countries' readiness for AI presence, of which
Indonesia ranks 42nd (below
Malaysia and Thailand), and
notably lacks value on the
technology readiness pillar. In addition, based on a study published by the
U.S.-ASEAN Business Council, Indonesia is also projected
to face a shortage of 9 million
skilled and semi-skilled workers between 2015 and 2030. This condition will certainly challenge Indonesia to integrate AI in various sectors fully.
In
2020, the National Strategy
for Artificial Intelligence 2020-2045 has been designed as the direction of national
AI technology policy. The draft AI National Strategy contains 4 (four) focus areas: ethics
and policy, talent development, infrastructure and data, and industrial research and innovation.
In the Draft AI National Strategy, it is
proclaimed that the vision of
AI Indonesia will be aligned with the
Golden Indonesia Vision 2045, and a mission has been designed to (i) realize ethical AI in accordance with the values of
Pancasila; (ii) preparing AI talents
who are competitive and character; (iii) realizing a data ecosystem and infrastructure that supports AI's
contribution to the benefit of
the country; and (iv) develop an ecosystem of
AI research and innovation collaboration to accelerate bureaucratic
and industrial reforms. The mission and policy objectives
related to AI will also align
with Indonesia's commitment to realising
sustainable development goals (SDGs) targets.
To achieve the mission designed in the National Strategy of AI, international cooperation is one of the
highlights, especially
international cooperation, to realize trustworthy
artificial intelligence (trustworthy AI).
Indonesia
also faces challenges that become a gap between developed and developing
countries in the use of AI, including
differences in standards and regulations between countries, sovereignty and data management issues, and the rapid
pace of development of AI technology that is difficult
to catch up with by
developing country infrastructure. For this reason, Indonesia needs to be proactive
in various international cooperation frameworks to voice AI governance
that is effective,
responsible, and in accordance with the interests of
developing countries. As stated by the
Minister of Foreign Affairs in the Annual Press
Statement on January 8, 2024, Indonesia's leadership at the
global level and the consistency of principled foreign policy have increased
the confidence of the world
community in Indonesia. Indonesian diplomacy will continue to fight
for national interests, strengthen the Golden Indonesia Vision 2045 foundation
and continue to contribute to
the world. The challenge ahead is how Indonesia's
diplomacy is also relevant to
efforts to bridge the gap in AI utilization and AI global governance. In the preparation of the Global Digital Compact as a blueprint for global AI governance and utilization cooperation, the Government of Indonesia needs to contribute actively,
especially to issues related to digital inclusion and connectivity, anticipation and mitigation of risks
and challenges arising from the
presence of AI, the role of
digital technology for development, especially accelerating the achievement of SDGs in developing countries, data protection and digital security,� and realizing digital global governance.
Indonesia needs to encourage the Global Digital Compact and other
international cooperation frameworks related to AI to bridge
the process of upskilling, reskilling, capacity building, and knowledge and technology sharing to increase digital capacity for human resources in developing countries, especially in
Indonesia. Finally, Indonesia should
benefit from international cooperation related to AI, while a national ecosystem related to AI must also
be built.
The
Indonesian government is also committed to supporting the
positive use of AI technology and strengthening the national AI ecosystem, such as the economy, health,
education and other sectors. AI will become a benchmark
for mastering digital technology in the next 5 to 10 years.
As many as 62 per cent
of companies in Indonesia
are ready to adopt AI technology. This is reflected
in the results of the research
'Artificial Intelligence Adoption Readiness of Businesses in Indonesia' conducted by digital solutions company Mekari. There are three levels of
company readiness to adopt AI technology.
First, companies have utilized at least
one digital solution to increase productivity
in one of the central business
processes or activities. As many as 95 per cent of medium and large businesses
in Jabodetabek, Bandung, and Surabaya. Second, companies have not only used
but also integrated various digital solutions in several processes or operational
activities to drive overall business
efficiency. Third, the company has formed a technology ecosystem by combining
two important factors, namely technology infrastructure and corporate culture,
to optimize the use of
technology for business growth.
But according to Cisco's first AI Readiness Index, which has surveyed more than
8,000 global companies, released
November 17, 2023, 100 per cent of
Indonesian companies say the
urgency to deploy AI, powered tech has increased. Still, only 20% of Indonesian companies are ready to integrate
AI into their business. Thus, there is a gap for companies ready
to adopt AI. Not only governments and companies must
prepare for the development of AI, but workers
and prospective workers must also
prepare to adapt and develop
skills that AI has not reached. The skills the job market
needs do not only focus on
hard skills. No longer limited
to creating programs, creating machine learning, capturing and processing
big data, or the like. Soft
skills are also needed, and these
skills are the priority indicators sought after by
global companies and can be applied
in various fields, including the creative
industry. For this reason, upskilling and reskilling are needed to improve
the skills of the Indonesian workforce in facing the development and threat of
AI.
Citing the June 2023 World Economic Forum (WEF) report on employment trends
and workers' abilities in the next five years.
WEF analyzes the skills or abilities
of workers from various positions
in global companies and conducts special surveys with the
leaders of the companies concerned.
According to the WEF, there are 23 key skills that
workers need to have in global companies. The top two are filled by cognitive
abilities consisting of analytical and
creative thinking skills.
Furthermore, character skills consisting of endurance,
flexibility, and personal dexterity then also supported by the ability
of motivation and self-awareness as well as the desire
for continuous learning. The sixth position is filled
with technical skills, such as digital literacy. However, in the context
of the challenges
of the next
five years, there is expected
to be a shift
in proficiency priorities required by several
global companies. The first
and second positions are still occupied by the
ability to think analytically and creatively. Next, the mastery
of AI and big data will be
followed by shifting the abilities
of characters currently occupying the third position.
Then, the fourth and fifth
positions are filled with leadership ability, resilience, personal flexibility, and agility.
AI Ethics and Regulation
in Indonesia
The
European Union (EU) argues that comprehensive AI regulation can control AI development, on December 9, 2023, the EU parliament approved AI regulations. AI regulation is necessary
because AI contains good sides and
negative sides. Regulation is needed
to regulate it, not hinder AI development. There are two types of
AI regulation: voluntary (ethics) and coercive
(legislation). AI regulation
in the EU is coercive.
Indonesia
already has a National Strategy
for Indonesian AI Intelligence
2020-2045. One of the topics of discussion
is ethics and policy. The Ministry of Information
and Communication has issued Circular Number 9 of 2023, dated December 19, 2023, concerning Artificial Intelligence Ethics, which is intended
for business actors of artificial
intelligence-based programming
activities on the standard code
of Indonesian business fields of public
scope electronic system operators, private scope electronic
system operators.
Implementing AI Ethics is a short-term
government tactical step to get around
the absence of more comprehensive
AI regulations. Still, ethics has weaknesses because it is
partial and not comprehensive, only passed within the
scope of the company that
enforces it. In addition, Indonesia is a country that has adopted fairly high-quality AI technology. AI ethics only applies
to fintech companies that are members of the
association. There is no principle
of equality before ethics. On the other hand,
AI is no longer partial but widespread. About 100 million people use ChatGPT.
Ethics only requires voluntariness, not coercion or soft
regulation. Ethics is limited to
appealing. Because ethics is voluntary,
not coercive, there is no adequate
sanction for ethics violations. There is no
certainty and justice for ethical
violations. There are no sanctions for
organizations or companies that do not make AI ethics if the
preparation of circulars or appeals.
On the other hand, there are concerns about the negative impact
of using AI.
Comprehensive arrangements that apply to all
to bring certainty and justice
can only be fulfilled by
laws and regulations. The enactment of laws and
regulations aims to reduce the
negative impact of AI while increasing
its positive impact. Indonesia needs EU-like legislation as a long-term strategy for regulating
AI.
The
National Research and Innovation Agency (BRIN) is working on
a draft law in the form of
a presidential regulation (PerPres) to regulate
AI. This intermediate law aims to
fill the void of laws
and regulations governing AI. In addition, Permenkominfo Number 3 of 2021 regulates licensing aspects
for business actors who utilize
AI. There have been and its derivative regulations regulating AI with electronic agent terminology, a Personal Data Protection
Law regulating the use of AI concerning
the processing of personal data even though there have
been no derivative
regulations until now.
Efforts to regulate the
use of AI have also been
carried out by the Financial Services Authority (OJK). OJK appointed the Indonesian Financial Technology Association
(AFTECH) and other industry associations, namely AFSI, AFPI and ALUDI, to compile and
establish 2023. In addition, OJK is also drafting regulations
on digital services by commercial banks,
which contain the principle of
responsible innovation in using new technology,
one of which
is AI technology. Despite these efforts,
Indonesia still needs regulations that specifically target AI technology
so that its
use can be
carried out responsibly while creating a good ecosystem for future
AI technology development.
CONCLUSION
AI
plays a crucial role in global industrial development, including in
Indonesia, but caution must be exercised
to prevent overreliance on AI, which could lead
to adverse consequences if not optimally utilized. The primary concern lies in AI surpassing human control, prompting debates on its
adherence to ethical and moral values. Effective regulations and oversight mechanisms are imperative to ensure
human control over AI, necessitating
multidisciplinary studies and inclusive policies.
Addressing challenges such as transparency and accountability requires identifying and mitigating risks throughout the AI lifecycle, with the Indonesian government playing a pivotal role in mapping vulnerabilities and establishing updated risk management
policies. A comprehensive approach incorporating
horizontal, vertical, and sectoral models is essential, with
central regulations guiding overarching principles and specific sectors tailoring regulations to their unique
needs, ultimately ensuring responsible AI development and governance in Indonesia.
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