AI could boost workplace productivity by up to 40 pct: Minister

if workflows and SOPs are redesigned and workers are subsequently upskilled, productivity could potentially increase by 30 to 40 percent.

Jakarta (ANTARA) - Manpower Minister Yassierli said the adoption of artificial intelligence (AI) in the workplace must be human-centered and aimed at improving national workforce productivity, with redesigned workflows and upskilled workers potentially boosting productivity by up to 40 percent.

Yassierli said sectors with high AI utilization show faster productivity growth compared to sectors with lower AI utilization.

"However, the use of AI does not necessarily mean a drastic reduction in the workforce," he said in a statement here on Tuesday.

According to him, technology can create new business opportunities while also increasing demand for certain skills. Therefore, workers need expertise in their respective fields as well as the ability to use AI in their work.

“AI adoption is not limited to hiring experts or turning AI into merely a digital assistant,” Yassierli said.

He explained that the success of AI implementation depends heavily on improving work processes. Using AI only as an operational assistant can increase productivity by an average of around 5 percent.

However, he added that if workflows and standard operating procedures (SOPs) are redesigned and workers are subsequently upskilled, productivity could potentially increase by 30 to 40 percent.

Yassierli added that a Boston Consulting Group (BCG) study of 1,250 companies found that 60 percent of AI pioneer companies have yet to see significant business benefits, partly due to flawed AI implementation strategies.

“Therefore, technological transformation needs to be positioned as part of a strategy to strengthen competitiveness while also supporting sustainable employment development,” he said.

In implementing AI in the workplace, he said the Manpower Ministry is promoting four key principles.

“First, AI is used to strengthen human capabilities, not merely replace workers. Second, its implementation is carried out with the involvement of workers and labor unions,” Yassierli said.

He added that AI-driven decisions affecting workers’ rights, safety, and job opportunities must remain under human oversight. Finally, AI implementation must ensure that no worker is left behind, including senior workers.

“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 companies to exchange knowledge and share best practices,” he said.

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Translator: Arnidhya, Kenzu
Editor: M Razi Rahman
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