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Artificial Intelligence Emerges as a Core Business Strategy in 2025

Xing Hao Technology > Newsletter > Artificial Intelligence Emerges as a Core Business Strategy in 2025

In 2025, Artificial Intelligence (AI) has evolved beyond a promising technology trendinto a strategic imperative for businesses across Indonesia —reshaping operations, competitiveness, and innovation pathways.

Recent research on AI adoption reveals significant momentum in the Indonesianbusiness landscape. According to a study conducted by Amazon Web Services (AWS) and Strand Partners, AI adoption in Indonesia grew by 47% in 2024, with nearly 28%of businesses integrating AI into operations — a remarkable shift that continuedtoinfluence priorities throughout 2025.

However, the AWS study also highlights an important insight: while many companies have adopted AI for operational efficiency and process automation, only a small fraction have integrated AI deeply enough to drive business transformation or newproduct innovation.

This trend suggests that AI is increasingly being used as a supporting tool rather thana core strategy — signaling a gap between early adoption and strategic integration. For forward-looking enterprises, this gap presents a significant opportunity. Businesses that embed AI not just in tooling but into decision-making processes, customer experiences, and strategic planning are more likely to out perform competitors.

A major barrier to deeper AI adoption remains the digital skills gap. The AWSreport highlights that 57% of companies cite a lack of skilled personnel as the mainchallenge to expanding AI capabilities. This underscores the need for strategicworkforce planning, upskilling programs, and talent development to fully harness AI’s potential.

In response to this trend, industry leaders suggest that organizations pursuingAI success must focus on:

  • Clear AI governance and strategic alignment with long-term business goals
  • Upskilling and reskilling initiatives for employees
  • Pilot programs that scale gradually from automation to innovation use cases

As global consulting firms such as Boston Consulting Group (BCG) note, onlyasmall percentage of companies today derive measurable business value fromtheir AI investments — often because they fail to treat AI as a transformative strategy rather than merely a technological add-on.

Looking ahead into 2026, businesses that prioritize AI strategy —beyond basic usecases — are expected to lead in areas such as customer experience, data-drivendecision-making, and operational resilience. For the Indonesian economy as a whole, fostering AI adoption strategically will be crucial in maintaining competitiveness within Asia’s rapidly evolving digital landscape.

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