Artificial Intelligence Literacy as the Foundation for Sustainable Business Transformation: An Analysis of Strategic Gaps and Governance Challenges in Indonesia
Abstract
Artificial Intelligence (AI) literacy has emerged as a critical foundation for sustainable business transformation in Indonesia, encompassing the competencies necessary for individuals and organizations to effectively engage with AI technologies. This study aims to analyze the strategic gaps and governance challenges that hinder AI implementation in Indonesia's business ecosystem. Using a qualitative approach through systematic literature review, this research examines how AI literacy impacts business transformation, identifies key barriers to AI adoption, and proposes strategic recommendations for improvement. The findings reveal that 77% of Indonesian business leaders recognize AI as critical for economic growth, while 94% plan to increase sustainability investments. However, significant challenges persist, including infrastructure inadequacy (84%), cybersecurity concerns (55%), and skilled talent shortage (45%). Only 45% of businesses understand ethical AI usage, and merely 24% have clear governance processes. The study identifies critical gaps in human capital development, regulatory fragmentation, and regional disparities in AI adoption. Strategic recommendations include integrating AI literacy into national education curricula, adopting skills-based hiring practices, establishing ethical governance frameworks, and fostering multi-stakeholder cooperation. The research concludes that comprehensive AI literacy programs, coupled with robust governance mechanisms, are essential for Indonesia to harness AI's transformative potential while ensuring ethical and sustainable business practices.
Keywords : Artificial Intelligence Literacy; Sustainable Business Transformation; AI Governance; Digital Transformation; Strategic Gap Analysis; Indonesia;
References
Chui, M., Manyika, J., & Miremadi, M. (2023). What AI can and can't do (yet) for your business. McKinsey Quarterly, 2023(1), 1–12.
Deloitte. (2024). AI-driven educational transformation in Indonesia. Deloitte Insights.
Floridi, L., & Cowls, J. (2019). A unified framework of five principles for AI in society. Harvard Data Science Review, 1(1), 1–15.
Government of Indonesia. (2024). Indonesia to use agentic AI for smarter, faster policy analysis [Press release].
Herbert Smith Freehills. (2024). Indonesia AI regulation update. Herbert Smith Freehills.
IBM. (2024a). IBM provides free AI training for youth and women learners in Indonesia. IBM Corporate Social Responsibility.
IBM. (2024b). IBM study: Indonesia businesses primed for AI, but face gaps in skills and infrastructure. IBM Newsroom Indonesia.
Jang, M. (2024). The mediating role of perceived usefulness in AI adoption behavior: A study of text-based generative AI. Journal of Educational Technology, 42(3), 215–232.
Ke, F., Chen, Y., Wang, L., & Zhang, H. (2025). AI literacy as a predictor of perceived usefulness: The mediating role of performance and effort expectancies. Computers & Education, 189, Article 104589.
Kitchenham, B., & Charters, S. (2007). Guidelines for performing systematic literature reviews in software engineering (EBSE Technical Report). Keele University.
Laupichler, M. C., Ber, R., Raupach, T., & Schaper, E. (2022). Artificial intelligence literacy in higher and adult education: A scoping review. Computers and Education: Artificial Intelligence, 3, Article 100101.
Long, D., & Magerko, B. (2020). What is AI literacy? Competencies and design considerations. In Proceedings of the 2020 CHI Conference on Human Factors in Computing Systems (pp. 1–16). ACM. https://doi.org/10.1145/3313831.3376727
McKinsey Global Institute. (2024). The state of AI in 2024: Generative AI's breakout year. McKinsey & Company.
Ministry of Communication and Information of the Republic of Indonesia. (2024). Law and policy on AI utilization for good governance in Indonesia. Government of Indonesia.
MIT Technology Review. (2025). The cognitive debt of AI reliance in education. MIT Technology Review Insights.
Ng, D. T. K., Leung, J. K. L., Chu, S. K. W., & Qiao, M. S. (2021). Conceptualizing AI literacy: An exploratory review. Computers and Education: Artificial Intelligence, 2, Article 100041.
PS Engage. (2024). Indonesia's AI national roadmap white paper. PS Engage.
Public First. (2024). Indonesia – The AI opportunity: Harnessing AI for economic growth. Public First.
UNESCO. (2021). Recommendation on the ethics of artificial intelligence. UNESCO.
World Economic Forum. (2024a). The future of jobs report 2024. World Economic Forum.
World Economic Forum. (2024b). Realising AI's potential for Southeast Asia's workforce: Spotlight on Indonesia [White paper]. World Economic Forum.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Arya Budi Sutopo, Muhammad Davin Arya Syahputra
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
Please find the rights and licenses in Prosiding Seminar STIAMI By submitting the article/manuscript of the article, the author(s) agree with this policy. No specific document sign-off is required.
- License
The commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-ShareAlike 4.0 International License.
2. Author(s)' Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
Prosiding Seminar STIAMI spirit is to disseminate articles published are as free as possible. Under the Creative Commons license, Prosiding Seminar STIAMI permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and Prosiding Seminar STIAMI on distributing works in the journal and other media of publications.
4. Co-Authorship
If the article was jointly prepared by more than one author, any authors submitting the manuscript warrants that he/she has been authorized by all co-authors to be agreed on this copyright and license notice (agreement) on their behalf, and agrees to inform his/her co-authors of the terms of this policy. Prosiding Seminar STIAMI will not be held liable for anything that may arise due to the author(s) internal dispute. Prosiding Seminar STIAMI will only communicate with the corresponding author.
5. Miscellaneous
Prosiding Seminar STIAMI will publish the article (or have it published) in the journal if the article’s editorial process is successfully completed. Prosiding Seminar STIAMI editors may modify the article to a style of punctuation, spelling, capitalization, referencing and usage that deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers as mentioned in point 3.
Every accepted manuscript should be accompanied by "Copyright Transfer Agreement"prior to the article publication.
