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

In this issue of The Prompt, we discuss how Indonesian banks and SEA ride-hailers use AI and a new military blueprint for the tech. [Read from your browser]( The Prompt 🤖 Welcome to The Prompt! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in AI. Get all our content, including The Prompt, by [registering for a Tech in Asia account](. Alternatively, [sign up here]( if you just want to receive this newsletter. 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 --------------------------------------------------------------- Hello {NAME} 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]( Indonesia’s financial institutions have fully embraced AI, applying it in areas like credit analysis and customer service. 2️⃣ [Beyond Grab, GoTo: Southeast Asia's top ride-hailing competitors]( Both established names and new players are looking into M&As, partnerships, and AI integrations to boost market share.  --------------------------------------------------------------- THE HOT TAKE AI-led warfare Here’s what happened: - A [global summit]( has introduced a new blueprint on the responsible use of AI in military operations. - The event saw participation from 96 nations, including players such as the US and China. - While the US, along with over 60 countries, endorsed the blueprint, China and 30 other nations did not. Here’s our take: The blueprint outlines three key safeguards for the use of AI in the military. First, risk assessments should be conducted when deploying the tech in military activities. Second, human control should be maintained to manage potential risks. Third, AI should not be used to facilitate the proliferation of weapons of mass destruction, particularly by terrorist organizations. Nuclear weapons, in particular, should be controlled by humans. The use of autonomous weapons in warfare has been the subject of [ongoing debate]( and there have been increasing calls for regulation in the space. AI has already been employed to manage certain aspects of warfare, such as logistics tracking, but the idea of AI making autonomous decisions whether to attack or not is unsettling. In fact, there have been [reports]( of AI’s use in the Israel-Palestine conflict. By some accounts, Israel has an AI-powered database called Lavender that it uses in Gaza to target Palestinians who are allegedly linked to Hamas. Local military personel are said to be reviewing the targets of each attack, but the process takes all but “20 seconds,” [one report notes](. Ukraine, in its war against Russia, has also become a testing ground for startups developing AI-enabled drones. These drones are not dependent on [“maintaining connections with human pilots.”Â]( means AI will decide where the drone will target. While it is important to use AI in analyzing battlefield data, logistics, and surveillance, many think there should be human intervention in critical decisions, especially those involving life and death. But who will determine the right level of regulation? With China and 30 other countries already opting out, it’s crucial for global superpowers to find common ground on the use of AI in warfare.  --------------------------------------------------------------- DEEP READS Check out these interesting reads about AI: 1️⃣ [New earning strategies, thanks to AI]( A new wave of startups is launching AI-generated content on TikTok and YouTube accounts automatically. These startups are providing an opportunity for digital entrepreneurs aiming to generate passive income. 2️⃣ [Medicine can also be high on AI]( A three-part series examines how AI is transforming drug discovery and development, uncovering new applications for existing medications, and designing novel proteins from the ground up which could be used in therapies. 3️⃣ [AI may beat ADHD?]( An Australian writer diagnosed with ADHD has left it to ChatGPT to tell her which tasks she needs to prioritize in a day. These include calculating travel time and suggesting routes.  --------------------------------------------------------------- CONNECT AND ADVANCE YOUR KNOWLEDGE AT SYNC 2024 Join us for in-depth discussions, inspiring demos, and invaluable networking Get ready to dive deep into the exciting world of AI at SYNC 2024! This year, we're bringing together industry leaders, rising startups, and passionate individuals to explore the latest advancements, challenges, and opportunities in AI across Asia. Prepare to be inspired by thought-provoking roundtable discussions where industry trailblazers will share their perspectives on the future of AI in Asia. Covering a wide range of topics, ranging from the impact of AI on various industries to the ethical considerations surrounding its development, these talks will offer valuable insights and spark engaging conversations. You’ll also get the chance to discover Asia's most promising AI startups at our demo discussion segment. Beyond the insightful programs, you will have ample opportunity to connect with fellow attendees, expand your network, and pick the brains of industry leaders and potential collaborators. With a high-touch luncheon and our signature closing cocktail session, you'll have plenty of time to bond with your new connections and build relationships that will last beyond the event. This exclusive event is by application only. Find out more about [SYNC 2024]( today.  --------------------------------------------------------------- EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Jakarta on October 23 - 24]( Feeling lost in the Gen Z lingo? Join us at TIA Conference Jakarta and hear from these media moguls who will spill the tea. Learn how to navigate the world of short-form content, leverage AI to personalize content recommendations, build authentic and engaging communities, and more. No cap, this session is gonna be fire. [Get tickets at 40% off before price increases on September 19.]( [Leadership Collective: Building at Scale on September 26]( Calling all senior product developers and engineers! We’re teaming up with Figma for an exclusive, insider look at how the fusion of AI and engineering is breaking down silos and rewriting the rules of product development. Seats are extremely limited - [apply now.]( [Gemini Day for Startups: Indonesia on September 26]( Turn AI hype into your startup’s unfair advantage. Learn concrete steps to turn insights into real value for your business. Expect practical advice, clear next steps, and zero jargon – just real-world AI that gets results. Limited seats available - [apply for your invite today.]( [Tech in Asia Conference Jakarta on October 23 - 24]( Ever felt overwhelmed at a conference? Too much to see, too little time? At TIA Conference Jakarta, we've got you covered. Our Pro Pass gives you exclusive access to networking events, catered meals, and on-demand sessions, ensuring you make the most of your time. Focus on building relationships and leave the logistics to us. Bond with your new connections over five-star meals and catch up on sessions at your own pace with video replays. But hurry, this pass is in high demand and sells out quickly. [Grab your Pro Pass now]( for US$131 before prices increase on September 19. --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter [here](. 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