Artificial intelligence (AI) is here to stay, and its role in business continues to grow. However, while 70 per cent of business leaders anticipate that AI will disrupt their industry within the next five years, only 20 per cent feel their organisation is adequately prepared for this impending change.

According to a recent poll, in order to address this issue, 66 per cent of executives will recruit AI specialists externally, while 34 per cent said they will train existing staff to fill the technological gap.

But is this enough? What do business leaders really need to know about artificial intelligence – and how exactly can we utilise this wave of technology to increase our return on investment (ROI) significantly?

This article is designed to shine a light not only on the power of AI in business but also on real-life, usable steps for incorporating AI into a company seamlessly and successfully.

The benefits of AI

Let’s take a look at the various benefits AI can bring to a business. For us at Lean Partner, we merge the Lean Six Sigma methodology with our approach to using AI in several ways, where everything we do must create value for the end customer.

With this in mind, the first big benefit is that AI can greatly improve productivity. With AI automating repetitive tasks, business leaders can focus on enhancing customer service or developing new products instead of worrying about manual data entry or account management.

In fact, when it comes to improving customer service, AI can also play a role. Through Natural Language Processing (NLP) and machine learning capabilities, AI-based customer service platforms are able to speed up response times and offer personalised recommendations based on purchase or browsing history, improving the overall customer experience.

From here, let’s look at how AI can impact both sales and marketing strategies. Business owners can use AI to gather data on customer preferences, market profiles, and competitor activities. In turn, AI’s more efficient capacity for data analytics can also identify the best ways to allocate marketing budgets and which marketing channels are more likely to bear fruit – and of course, automating marketing tasks is a breeze with AI as well.

Finally, let’s look at every business’s bread and butter – finance. At the root level, AI is fantastic for anything involving numbers, so budgeting, forecasting and planning can be completely automated, as well as cash flow and liquidity management and other operational support services.

Also Read: From experts: Tips to improve operations and maximise ROI

Looking even further afield, AI can also assist with risk management, fraud detection, and tax optimisation, or even compliance with regulations around reporting corporate earnings or bank accounts abroad! All in all, it’s clear that using AI can make any business run smoother, faster, and more efficiently.

Using AI to Improve Your ROI

With all that in mind, here are four practical steps any business owner can take to start implementing AI into the day-to-day workflow. Firstly, identify high-impact areas by asking, “Which parts of the business can quickly and positively benefit from AI?” For example, an e-commerce company could start by automating the categorization and tagging of product images to save time and improve accuracy.

Next, create a strategic AI roadmap with clear goals for the identified high-impact areas. Using the example above, the goal could be to reduce image tagging time by 50% within six months. Start with a small pilot project to test various AI image recognition tools and identify the best one. Once found, implement that tool for all product images.

On that note, the third step is to invest in both the right tools and talent. While having image recognition software is good, for further efficiency, finding a machine learning-based image recognition tool that can automatically tag product images and continuously update its own database would work even better. Then, hiring a data scientist to lead the project and train the team on using the new tool would be the perfect follow-up.

Also Read: The future of finance: ESG integration in tokenised funding

Finally, it is imperative to continuously monitor and optimise the AI tool. Here, the measurable data points to track regularly include the time saved and the overall accuracy of the AI tool. This ongoing monitoring allows for adjustments and refinements to the tool’s settings, facilitating further enhancements in its performance over time.

The stories of AI-forward success

We not only wholeheartedly believe in the power of AI to completely transform operational efficiency, but have seen it for ourselves. Among the clients we’ve assisted, many have been able to leverage AI tools to improve their day-to-day workflow in leaps and bounds.

For one, a hospital used AI for early disease detection, analysing patient data to swiftly identify disease patterns for faster diagnoses and improved patient outcomes. Similarly, a bank employed AI to detect fraudulent transactions, automatically flagging suspicious activities to prevent financial losses and maintain customer trust.

Additionally, we also assisted a manufacturing plant in integrating AI for predictive maintenance, analysing machinery sensor data to predict and prevent equipment failures, reducing downtime, and production losses, and extending equipment lifespan.

In conclusion, the integration of AI technologies offers a practical pathway to achieving – and even surpassing – a 10x ROI. The strategic application of AI can unlock new levels of efficiency, innovation, and profitability. The journey of using AI to boost ROI is complex, but with the right approach, it is well within reach for businesses ready to embrace the AI revolution.

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At the sidelines of the recent SuperAI 2024 event in Singapore, Vishal Harnal, Global Managing Partner at 500 Global, revealed the challenges businesses in Southeast Asia (SEA) face in adopting new technology, including Artificial Intelligence (AI).

According to him, businesses in the region tend to move slower in this matter.

“Traditional businesses in SEA are generally slower in adopting technology, but that is changing as the first wave of successful tech startups has emerged. Prior to 2012/2013, the idea of a small company selling a technological solution to a large enterprise is new behaviour,” he told e27.

“In the last five years, this has changed as established companies witness their competitors adopting new innovations and becoming more technologically proficient.”

In general, there are two hurdles that businesses are facing when it comes to new technology adoption.

“The first hurdle is that, for traditional enterprises adopting AI often requires significant changes to processes, skills, and culture. Many established companies lack the technological fluency to implement AI solutions,” he said, adding that changes are now more apparent as the next generation of leaders make technology purchasing and acquisition decisions.

“The second hurdle is that AI applications are still in their nascent stages, and the suite of enterprise-ready products and services are still being built.”

Also Read: Artificial intelligence and the art of building presentations

In this interview, Harnal explains in more detail how 500 Global approaches investing in AI, which has gained a significant surge in popularity recently.

The following is an edited excerpt of the conversation:

What is your investment strategy in Asia, particularly regarding AI?

500 Global is a multi-stage venture capital firm. We invest worldwide and have backed 3,000+ companies operating in 80+ countries in various sectors. The volume of our investments over the last 14 years has allowed us to build our expertise and sharpen our long-term investment theses in Asia and globally.

We think about where the world will be in the next five to ten years, the main drivers of value, what consumers will want, and the way we live, work and play. We identify and invest in technological trends that are hard for the mind to comprehend today but that we believe will drive the global economy in the future.

One of the trends we identified well ahead of the curve in SEA is agritech. In 2015, we started building a thesis around agriculture. SEA is home to large agrarian communities, with eight out of 10 countries in ASEAN dependent on agriculture and its production. Yet, farming practices were primitive, and farmers were disconnected from technology.

So, we invested in a company called eFishery, a full-stack fish and shrimp farming management system (app, IoT devices, and SaaS) supporting more than 200,000 fish and shrimp farmers across 280 cities in Indonesia, and has also launched in India with plans to expand its footprint to five new states by the end of 2024.

eFishery is boosting aquafarm productivity and sustainability by equipping farmers with an AI co-pilot that understands their language (Bahasa Indonesia, Javanese, and English). This allows farmers to actually use the data collected to get answers on how to optimise their farms.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

500 Global has been looking into what we’re now calling AI for about eight or nine years now, so it is one of our long-term investment thesis. Back then, we thought about AI more from the perspective of machine learning and automation before it became mainstream in the minds of the public with ChatGPT in 2022.

We see AI opportunities in three main areas: infrastructure/model building, tooling, and applications. The area we invest in depends on the strength of the markets.

Infrastructure/model-building startups that we invest in are based in the US, Canada, and Europe, and even researchers who move to Japan. For instance, we invested in a company called Sakana AI, an AI research lab at the forefront of exploring alternatives to foundation models that are more adaptive and resilient.

In Singapore, we recently invested in a photonics company focused on supporting data centres in achieving higher computing power for AI.

Tooling is often an overlooked category in general; opportunities in this area are generally in more mature AI markets like the US. In 2009, we invested in Twilio, an AI-powered SaaS company that strengthens businesses’ customer engagement by unifying their data to build insightful customer journey maps.

Applications impact all of us, and this is where we see investment opportunities globally. Startups are using AI to build products and services that solve real problems and create value for their customers.

So, when you look at companies across these three different layers, are there any specific criteria that you use to decide that “this is the company that I invest in”?

It really depends on what area you are targeting in the AI ecosystem.

With infrastructure/model building, we look for subject matter experts with a deep knowledge of AI. As a generalist, you are unlikely to understand the opportunities meaningfully without understanding the core technology and developments. The people in our team who are investing actively in AI are conversant in the scientific research and papers that post-docs are publishing in this space.

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

With applications, we look for companies that use AI non-trivially to significantly optimise how they run their business, such as lowering costs or increasing productivity. With AI, what you need to scale changes phenomenally. Even for companies in SEA, AI can allow early-stage founders to punch above their weight.

As for the team, we look for exceptional founding teams with a strong mix of technical expertise in AI/ML and deep domain knowledge in their target industry. They should have a clear vision of how AI can create value for their customers.

What is the big plan when it comes to AI for this year? Apart from all the companies that you have already invested in, is there anything else that you are looking at?

The thinking needs to shift from “Are you looking for AI companies?” to thinking about AI as a technology layer that everyone will adopt somehow.

From an investment perspective, we are focusing on two broad areas:

Companies building core AI hardware. For instance, we’re bullish on the chip space as SEA has been a semiconductor manufacturing hub for the rest of the world, especially in Malaysia.

Companies building vertical AI applications. We are doubling down on startups building specialized AI applications for specific industry verticals such as agriculture, healthcare, finance, and more. These solutions are tailored to each sector’s unique challenges and data environments, enabling faster adoption and value creation.

One thing I have noticed that has not reached its full potential in SEA is the integration of AI into the startup stack—how startups are utilising AI tools to significantly lower costs and increase their efficiency. It is not happening at the scale it is in the US, so I hope that changes and global teams like ours can help accelerate it.

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Opilot, a Singapore-based AI startup focusing on data privacy and protection, has raised an undisclosed pre-seed amount from Iterative Capital.

This capital will allow it to scale its premium and enterprise tiers as it begins pilot tests with companies.

Also Read: How startups can overcome the AI talent death

With the increase in AI adoption across the workforce, more people are using AI to write emails, create reports and brainstorm ideas. However, the data shared could put users and businesses at risk — with client data, business data and trade secrets at stake.

As a result, companies have started banning or restricting AI usage, resulting in non-compliant workarounds, such as employees using their personal ChatGPT accounts to process emails and company data.

Opilot seeks to create a win-win solution, with employees and companies benefiting from AI to improve overall productivity while maintaining airtight data privacy and protection.

The startup has launched a local, secure, and private AI copilot solution running fully on-device, which is particularly useful for industries or functions that demand the highest data protection and confidentiality standards.

Also Read: Navigating the AI landscape in 2024: Why there is an urgency for enhanced governance

With Opilot, all data is processed locally, with no inputs shared with cloud servers. This additional layer of data protection prevents data breaches encountered by companies using cloud-based services, such as ChatGPT.

Industries that have held back AI usage for employees, such as law and insurance, can increase their productivity as even their most sensitive information, such as contracts with client data or financial models, can now be processed securely.

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Image Credit: Opilot.

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A new era has dawned. The era of Gen Z consumerism. And the travel industry is reaping benefits for young consumers today. For younger generations, travel isn’t just an occasional indulgence — it’s a top priority.

According to a recent McKinsey survey, 66 per cent of travellers are now more interested in travel than they were before the COVID-19 pandemic. And this surge in interest is particularly strong among Gen Zs and Millennials.

And they’re not just talking about it, they’re making it happen. In fact, they are planning more trips in 2024 than they did in 2023. In 2023, they took an average of nearly five trips each, outpacing Gen Xs and Baby Boomers, who took fewer than four.

Travel for Gen Zs and Millennials is more than just ticking off destinations on a map; it’s about creating memorable experiences, discovering new cultures, and sharing these moments on social media. This shift in travel preferences and behaviours is becoming more and more prevalent.

Experience over expenses

For Gen Z and Millennial travellers, it’s all about the experience.

A McKinsey survey revealed that 33 per cent of consumers plan to splurge on travel, making it the third most popular splurge category (behind eating at home and eating out). And of these consumers, younger generations are more willing to devote significant spend towards travel experiences, compared to other generations.

These younger generations prioritise immersive experiences, cultural encounters, and Instagram-worthy moments over the cost of their trips. They’re willing to splurge over US$2,000 to make their travel dreams a reality and create meaningful adventures.

And for those who splurge on travel, they’re determined to cut costs in other areas before trimming their spending on travel experiences. They’re willing to save on flights and local transportation, but when it comes to unique and memorable experiences, they’re all in.

Social media influence

The influence of social media creators is massive. Around 80 per cent of travel bookings are now influenced by their recommendations.

Travel content creators make destinations come alive with authentic, personal stories that feel more relatable than traditional ads. They highlight not just the must-see sights but also the little-known gems, making followers feel like they’re getting tips from a local friend; and in turn, driving FOMO (fear of missing out) of course.

Take TikTok for example. TikTok has completely changed the game for travel inspiration. With a whopping over 443 million views on #travel content, TikTok is one of the key channels where young travellers turn for fresh ideas and hidden gems.

The power of TikTok lies in its ability to deliver bite-sized, visually compelling content that captures the imagination and sparks wanderlust in seconds. It is the ultimate match for the content consumption habits of the younger generation.

Intentional travel planners

Contrary to the stereotype of spontaneous youth, Gen Z and Millennial travellers are becoming more intentional planners, with 65 per cent of them organizing their trips 2-6 months in advance. This trend highlights their independent travel habits, centered around their desire for control, flexibility, and maximising their travel experiences.

These young travellers love the pre-trip planning process. It’s part of the excitement, the buildup to the adventure. This intentional approach ensures they get the most out of their travel experiences, balancing spontaneity with a well-thought-out plan.

What next?

Gen Z and Millennials are redefining travel. They’re not just tourists; they’re explorers, planners, and storytellers, shaping the future of travel with their passion for meaningful, well-crafted adventures.

The travel industry must adapt to these shifting preferences, catering to the experiential demands of these next-gen travellers. By understanding their priorities and behaviours, travel businesses can curate tailored experiences, leveraging social media influencers and intentional planning to stay ahead in the game.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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According to a 2023 PwC study, 44 per cent of employees in Asia Pacific believe that the skills required for their jobs will undergo significant changes within the next five years. However, only 48 per cent have a clear sense of how those changes will unfold.

In the next 12 months, roughly 40 per cent are extremely or highly likely to ask for a pay raise or a promotion, while about 30 per cent are likely to change employers. These figures represent a 7-10% increase compared to the previous year’s survey, indicating an increased willingness among employees to make changes in their careers.

Zooming in on Southeast Asia as a collective of individual emerging markets, these issues are compounded for employers by a long-standing shortage of top talent. Companies are routinely forced to cope with challenging conditions in the talent market. 

On a recent episode of Indonesia Digital Deconstructed by AC Ventures, the firm’s AVP of Organisation and People, Derisa Zahara, sat down with fellow practitioners in the Southeast Asian recruiting and HR sector.

Sandi Sadek, the Chief People Officer at global venture capital firm B Capital, and Sergio Salvador, the former Chief People Officer and current Strategic Advisor at Carsome, as well as a member of ACV’s portfolio advisor community, joined the conversation. The group discussed key strategies for attracting and retaining top talent in emerging Asia. 

Culture is key, but performance is king

When asked at a high level about how to think about hiring and keeping the best people, the group began by looking at cultural fit and diversity. According to Sadek, these two components are increasingly important in attracting talent in Southeast Asia, where the pool is still limited but slowly growing. 

She explained the importance of culture and a strong employer brand – aligning personal values with organisational goals is not just desirable but essential for fostering a conducive work environment. Beyond that, she went on to share that before you can have a strong employer brand, the company itself needs to perform well. 

Also Read: AC Ventures: Investors put more focus on ESG, but Indonesian startups seem “well-positioned” for this shift

“I think, irrespective of what type of company you work for, ultimately, performance is king. People want to work for a high-performing organisation. They want to work with great people. They want to do great things,” said Sadek. “We are also really seeing the importance of culture, particularly in Southeast Asia. This is why we try to make sure that people’s own values and goals align with the goals, values, vision, and mission of the organisation.”

Salvador echoed this sentiment, saying, “Carsome has gone through various phases in terms of its ability to attract talent. I agree that high-performing organisations attract talent. However, I do believe that the motivations of different people can be quite different as well. At the most basic level, that can translate simply into questions like: Am I working with friends? Am I working with people that I enjoy being around? Are we all following inspirational leaders?”

In addition to that, explained Salvador, it is quite different to try to attract very senior talent to an organisation than it is to attract junior or entry-level team members. Strategies for both ends of the spectrum will vary greatly.  

Cross-border hiring and tailored compensation

In emerging markets like Indonesia, where competition for the best talent has always been fierce, employers need to think outside of the box. In many cases, this means looking regionally for the best managers and executives. But cross-border hiring also brings more dimensions and complexities to the compensation discussion. 

“When discussing employee attraction and retention, it’s crucial to recognise that Asia, particularly Southeast Asia, is not a monolith but comprises varied countries with distinct trends,” explained Sadek. “In terms of compensation, it’s vital to consider the specific market dynamics. For example, Singapore’s government actively supports investment initiatives, enhancing its appeal for innovation and entrepreneurship—a contrast to other regions.

“While traditionally, startups have offered lower base salaries, this gap is narrowing, even as compensation strategies become more nuanced depending on the company’s stage and industry context. As such, a company’s approach to benefits and compensation must be tailored to local conditions of the team member as well as the organisation’s maturity.”

Salvador added, “Just double clicking on Sadek’s point, from a practical standpoint, simply offering high salaries to attract and retain talent is unsustainable in today’s market. Companies, whether small or large, must explore alternative strategies to engage employees meaningfully. This involves fostering a workplace where flexibility, autonomy, and internal mobility are emphasised and where managers serve as mentors, not just overseers.

Also Read: Are you a human resource?

“These elements are crucial for making the employee-company relationship ‘sticky,’ enhancing job satisfaction and loyalty. After all, .” 

Hiring top talent  in the age of AI

Zahara pointed out that it is difficult to have an up-to-date conversation about highly skilled employees without discussing the sweeping implications of new technology, namely AI. She mentioned a recent government initiative in Singapore aimed at attracting 15,000 AI professionals and asked how Carsome and B Capital are thinking about the new state of play on the talent frontier, with AI now squarely in the mix.

“AI is a transformative force within our company, significantly shaping how we operate globally,” said Sadek. “From a personal and organisational perspective, we’ve dramatically advanced our understanding and implementation of AI. We’ve established a dynamic in-house AI team pioneering changes across all areas—from investment strategies to operational functions like HR and marketing. This proactive approach is not just about keeping pace but about leading the charge in leveraging AI to enhance our workflows and decision-making processes.”

Salvador added, “Discussing the strategic goal of attracting 15,000 AI specialists is commendable but just a start. Given the expanding need for AI technology, this number is but a drop in the ocean. Over the coming decades, the demand will not only persist but increase across the region. To meet this, a multifaceted approach is essential. Upskilling current employees and collaborating with educational institutions to prepare students will be key. This strategy must combine  immediate talent acquisition with long-term educational partnerships to cultivate a continuous influx of skilled professionals into the AI sector.”

Get the full episode on Spotify, Apple, and Google.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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