AI leads the way for Indonesia’s banks, SEA’s ride-hailers

IN FOCUS

In today’s newsletter, we look at:

• Rising interest in AI among Indonesia’s banks and fintech startups
• How ride-hailing is flagging AI for growth
• How AI will shape the autonomous battlefield

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Hi there,

Sometimes it feels like AI is omnipresent. From smartphones and navigation to social media and online shopping, it has seamlessly integrated into our daily lives.

AI use cases are also expanding with the rise of generative AI, and it seems that every other headline today features the tech. It’s no wonder ChatGPT creator OpenAI’s valuation could breach US$150 billion with its possible new fundraising round.

Exciting times are ahead for the sector: OpenAI has launched o1, the first in a suite of reasoning models that think before responding. This marks a significant step toward achieving human-like AI.

On a broader level, the introduction of o1 will expand how generative AI can be used. In a post on X, OpenAI CEO Sam Altman said that o1 is already answering complex questions on a Ph.D. level and solving math and code queries.

This week, we feature not one, but two big stories highlighting AI.

First, my colleague Elyssa discusses how Indonesia’s financial sector is tapping into the technology. Nearly half of the country’s banks and fintech startups are now using AI to enhance operational efficiency.

Local financial companies are deploying AI not just for customer service but also for data analysis, fraud detection, and the implementation of facial recognition tech on their platforms.

In the second story, my colleague Miguel’s map on Southeast Asia’s ride-hailing sector touches on how major ride-hailing players such as Grab and GoTo are using AI. The tech has helped these companies do everything from predicting demand and calculating prices to optimizing routes for drivers.

— Samreen

THE BIG STORIES

1️⃣ Indonesia’s banks feel AI magic, but experts give caveats

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