Leighton Koseboom
Singapore ●
Tuesday, May 23, 2023
The birthplace of generative artificial intelligence (AI) technology is truly the United States, but its influence is truly global. It is a big mistake for Indonesian founders and funders to think that AI is not applicable to their business.
For those unfamiliar with the subject, AI, or the field of generation, is no longer science fiction. It is here and now, rapidly transforming business and society.
Generation as a Subset of AI AI uses machine learning models to generate new and original content. It’s like having at your disposal an army of virtual creators who can produce everything from poetry to prose, chords to music. But generative AI doesn’t just create content, it can simulate complex systems, generate data for training other AI models, or design products based on a given set of parameters. You can also. These capabilities can greatly accelerate your operations, from automating customer service responses to designing and prototyping new products.
The birthplace of generative AI technology is truly the United States, but its influence is truly global. That is why as an Indonesian entrepreneur or venture capitalist, it would be a big mistake to think that AI is not applicable to your business.
As a founder and funder, there are two ways you should think about generative AI. The first is to consider whether there are opportunities in the local ecosystem worth investing in or taking action on. The second is to understand the risks that may pose to existing business models (current or future). Frankly, some founders may be out of business within a few months. So the key is to combine both ways of thinking into her one action plan and execute it quickly.
We have launched AI risk analysis and consulting across our portfolio. This is to determine the potential for generative AI to pose a real threat to your business model. Using our proprietary framework and scorecard, each company gets a score from 1 to 5 (1 being ‘low risk’ and 5 being ‘significant risk’). If we believe a company is at ‘high’ or ‘severe’ risk of AI disruption, we will work closely with the founding team on a recommended course of action. This can include everything from pivots to core business models to product integration advice.
We see this as our responsibility as we aim to be the most value added investor on the cap table of every company we back.
Unlike the situation in the US, Indonesian startups are mostly tackling underlying social challenges (such as financial inclusion and supporting online business for underbanked MSMEs). Right now, there aren’t too many companies that aren’t working on language models and machine learning at scale to rival what’s coming out of Silicon Valley, but that doesn’t mean generative AI isn’t playing a role here.
Suffice it to say, generative AI can powerfully power any business, whether by increasing operational efficiency or by integrating directly into apps, platforms, and software. This is more than just an addon. It’s a game changer. Here are some examples of what I mean.
In e-commerce, generative AI can compile product descriptions, enable agents to respond to customer inquiries, and personalize product recommendations. Instead of a team of writers spending countless hours creating bite-sized chunks of text, a well-trained AI model can create thousands of unique descriptions in a fraction of the time. This not only saves a lot of time, money and energy, but also ensures overall consistency and quality. It’s a classic example of manual efficiency improvement, but I’m not even creative.
Fintech (and perhaps in the context of API integration) can use generative AI to identify fraud patterns and devise investment strategies. You can sift through vast amounts of data, identify anomalies and patterns that the human eye might miss, and generate alerts and actions based on the findings. This will enhance the security and performance of your fintech platform and give you an edge over your competitors.
Generative AI in healthcare can analyze medical images, generate health reports, and predict disease progression. A CT scan or her MRI can detect early signs of illness such as cancer or Alzheimer’s, and create a patient health report so doctors can focus on diagnosis and treatment.
Some ASEAN startups have already started using generative AI in their core services. In Indonesia, startups like Kata.ai are pioneering to offer large companies their own custom chatbots to automate customer service in Indonesian. The team has been working on this long before ChatGPT exploded in popularity, and their chatbots have generated millions of dollars in new revenue and cost savings for local powerhouses such as Telkom India and BRI Group. was bringing With his AI boom in 2023 and utilization of new APIs, this team could be a fresh eye for local investors.
Another interesting case in the region is MailMaestro, the flagship product of Singapore-based Maestro Labs. This is an Outlook plugin that uses GPT technology to quickly compose high quality emails. But it also tackles deeper issues. Many corporate employees are using his ChatGPT for emails, unknowingly compromising their privacy as AI “remembers” sensitive information they enter. This means that trade secrets and inside information may be exposed to anyone using ChatGPT.
MailMaestro is a tool that keeps all sensitive information safe, giving companies a way to let their employees use AI in their emails without enforcing company-wide bans.
ASEAN technology founders must start by understanding the technology and its potential applications in the industry. You need to be aware of the latest developments in AI and machine learning and understand how these developments can be applied to your business. This may include hiring AI specialists, partnering with research institutes, and investing staff in his AI training.
Once the basics are understood, founders should start thinking about how to integrate generative AI into their operations and product development. This could mean using it to automate routine tasks, improve user experience, or create new and innovative products.
Investors also have an important role to play. Today, all VCs should be proactive in working with their existing portfolio companies to explore ways to use AI as a protective moat and increase AI resilience. This may require resources and further investment.
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The author is Comms President of AC Ventures, a venture capital firm focused on Indonesia and ASEAN. Views are personal.
