Artificial Intelligence: Obstacle or Opportunity?

Christina Tri Setyaningtyas, Malvin Hizkia

Faculty of Business Administration and Communication Studies, Universitas Katolik Indonesia Atma Jaya,

Jl. Jend. Sudirman no. 51, Jakarta, Indonesia

Keywords: Technology, Artificial Intelligence, Impact

Abstract: At the beginning of its civilization, humans always thought of creating tools that could help or facilitate their

lives. Through their imagination they make equipment that their predecessors never thought of. Humans can

go to other places that are far away by using airplanes, information can be disseminated quickly by telephone

are an example of a technological development that is used to make human life easier. Along with the

development of technology, humans arrived at the digitalization era which greatly facilitated humans in living

their lives. In this era humans can create technology that allows humans to do many things using only the

touch of their fingers. Humans managed to create sophisticated computers, android, internet networks,

intercontinental wireless connections, communication devices, applications for trading to medical devices.

The latest technology that is currently emerging is artificial intelligence that is capable of doing things done

by humans. Gradually, artificial intelligence replaces the role of humans in doing their jobs, even certain jobs

are threatened with extinction. Technology that was created to facilitate human life turned to threat human

existence itself. This research was conducted to determine the impact of the application of artificial

intelligence to the employee in the banking industry.

1 INTRODUCTION

When the operating costs of an industrial business are

large compared to income, is a one way out option

chosen by business people. According to Winston and

Prendergast (1984: 25), from the very beginning of

their creation, artificial intelligence was built for the

purpose of making machines more intelligent and

useful. Like its original purpose, scientists have now

succeeded in making more intelligent machines used

in various industrial fields.

In the field of health, scientists have managed to

plant artificial intelligence in CT scans so that they

can analyse recordings more accurately. This tool can

sharply analyse the colour gradations on the scan

results which are invisible to the eye as the

differences are difficult to identify. This tool can even

provide identification of types of diseases and drugs

that are suitable for use by the patient.

In the field of processing agricultural products,

artificial intelligence is used to help separate coffee

beans that are ripe and raw by analysing the colour of

the fruit. Raw fruit will be directed to a special

container while the ripe one will be directed to the

next process.

Robot hands driven by artificial intelligence are

currently used in the motor vehicle assembly

industry. Beside its precision in assembling, these

robotic hands are also faster and stronger to move

heavy equipment. They are operated 24 hours without

time break which is very useful to push the production

turnaround time.

In the banking industry, artificial intelligence is

planted in an online service answering machine so

that customers can easily get the necessary

information such as account balances, remaining

debts, reset pins or passwords. Artificial Intelligence

can also be applied in customer data updating process

so that the processing time is improving.

Recently Japanese scientists have made an

artificial tongue that can identify how much sweet,

salty and acidic elements are in a food. This tool can

analyse the percentage of each element contained in a

particular food. This tool helps chefs to be able to

develop new foods that are healthier with a taste that

is as good as the food normally consumed by humans.

It is not impossible in the future, people can diet with

food that tastes delicious.

If at the beginning of its creation it was used to

facilitate human work, but over time the function of

716

Setyaningtyas, C. and Hizkia, M.

Artiﬁcial Intelligence: Obstacle or Opportunity?.

DOI: 10.5220/0008435707160719

In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 716-719

ISBN: 978-989-758-408-4

artificial intelligence began to shift the role of

humans.

2 DEFINITION AND IMPACT OF

ARTIFICIAL INTELLIGENCE

Artificial intelligence according to Teahan (2010),

commonly abbreviated as AI is the science of how to

build a computer system that shows intelligence in

various ways. Artificial intelligence was originally

built to help humans facilitate activities in their lives.

According to Winston and Prendergast (1984) there

are three objectives of the establishment of artificial

intelligence:

 Making the machine smarter (the main goal);

 Understanding what intelligence is (scientific

goals);

 Making the machine more useful

(entrepreneurial goals);

Like its initial purpose, scientists have succeeded

in making machines which are getting smarter in

various industrial fields. But in its development,

artificial intelligence began to bring influence both

positively and negatively to human life.

2.1 Impact of the Use of Artificial

Intelligence

The use of artificial intelligence in various industries

triggers various debates among academics,

regulators, entrepreneurs and even in the wider

community. Some argue that artificial intelligence is

an opportunity, but some argue otherwise.

According to the Balliester & Elsheikhi study

(2018) although the threat of using artificial

intelligence to jobs that currently exist will not be felt

in the near future, but fears begin to emerge because

of indications that show a significant number of loss

of some types of work.

2.1.1 Positive Impact

Artificial intelligence is created to help or facilitate

human work. Systems that are planted in the

computer can remember the steps of repetition which

are carried out daily by humans. This has an impact

on savings in settlement time. Artificial intelligence

can be run 24 hours, so it can increase work

productivity because there is no need to have time to

rest like humans.

In the heavy equipment industry, the engine

assembly is run by robotic hands that help improve

the safety of employees, because heavy and

dangerous activities can be replaced by machines.

In the field of health, the application of artificial

intelligence is very helpful for medical personnel to

detect diseases experienced by patients more

accurately through laboratory results and can also

identify the types of drugs suitable for their patients.

In the banking sector, the application of artificial

intelligence can be used to help work online services,

customer service and tellers in branches.

2.1.2 Negative Impact

One of the negative effects that humans gradually feel

is the disappearance of various kinds of human work

that can be replaced by artificial intelligence

machines.

CNN describes the fields of work that will be

extinct in the future, namely:

 Finance and insurance (reduced by 25 percent);

 Retail (reduced by 28 percent);

 Construction (reduced by 15 percent);

 Public administration and defence (reduced by

23 percent);

 Transportation and warehousing (38 percent

reduced);

 Manufacturing (reduced by 30 percent);

The work sectors above are sectors where the

majority of jobs are carried out repetitively and

administratively. This type of work does not require

special skills so that they can be easily replaced by

artificial intelligence.

2.2 Impact of Using Artificial

Intelligence on Labour in Indonesia

With the application of artificial intelligence to

various industrial sectors, this will affect the

availability of job opportunities for workers,

especially laborers in Indonesia. Indonesia as a

developing country still relies on its operations with

human resources. According to the Central Bureau of

Statistics or BPS in the 2016 Indonesian Economic

Census, the industry of large and retail trade, repair

and maintenance of cars and motorbikes; processing

industry; the industry that provides accommodation

and provision of food and beverage, and the financial

and insurance industries are examples of industries

that absorb the most labor. If the companies in the

above sectors begin to apply the use of artificial

intelligence tools, automatically the reduction of

labor cannot be avoided. With the reduction of jobs

above means that it will increase the number of

Artiﬁcial Intelligence: Obstacle or Opportunity?

717

unemployed who if not anticipated will become a

source of social problems in the future.

Based on BPS data, 48% of the total population of

Indonesia works as laborers. 38% of the total workers

work as factory workers and the economic sector

which will directly feel the influence of the use of

artificial intelligence in the production process. In the

future, these workers without special skills will lose

their jobs. This matter must be watched out by many

parties, especially the government in preparing its

citizens in the face of waves of the use of artificial

intelligence.

2.3 Impact of Using Artificial

Intelligence on the Financial

Industry in Indonesia

In the world of banking today, the development of

artificial intelligence has made the company change

its business strategy by placing technology as a major

factor in the process of product and service

innovation. The same thing is also done by one of the

international banks in Indonesia which is known as an

innovation leader. This bank applies artificial

intelligence in its services so that it has been recorded

to have reduced 10 branches from a total of 20

branches in 2018. Customers can now do activities in

their hands.

This international bank does not only use artificial

intelligence for things that are directly related to

customer service, but also in the operational process.

One process that was immediately replaced by

artificial intelligence was the process of completing

customer administrative documents. This process is

carried out to ensure that the administrative

information of customers recorded in the bank system

is in accordance with current conditions. This process

can last for two months with a process carried out by

human power. This bank has planned to apply

artificial intelligence that can shorten this process,

from two months to only two days. One day direct

charging by the customer in an application and one

day to get the bank's internal approval.

On the other hand, this international bank also has

outsourcing employees who will immediately feel the

impact of the application of artificial intelligence. The

problem is whether the application of artificial

intelligence has an effect on the motivation of the

work of outsourcing employees. This research aims

to investigate the impact of the implementation of

artificial intelligence to outsourcing employees which

will also influence the company’s performance

especially in operation processes.

3 RESEARCH METHODS

Research on the influence of the application of

artificial intelligence and outsourcing to employee

motivation using descriptive quantitative research.

According to Bungin (2005: 59), quantitative

descriptive research methods can be interpreted as

research methods used to describe, explain or

summarize various conditions, situations, phenomena

or various variables.

4 DISCUSSION AND

LIMITATION

Artificial intelligence at the beginning of its creation

was used to facilitate human work. But along with its

development, the function of artificial intelligence

began to shift the role of humans. This phenomenon

is the responsibility not only by companies that apply

it but also the government.

The government has a very important role to be

able to prepare the Indonesian people, especially

citizens with productive working age. One effort that

can be done is to make education evenly distributed

in all provinces. Adding information technology

content to the education curriculum from basic to

university level can also prepare citizens to be tech

savvy so they have special skills.

From the BPS data there are indications that the

population per province with ages 15 to 59 who have

technological skills are as follows:

Table 1: Proportion of Adolescents and Adults Aged 15-59

Years with Information and Computer Technology (ICT)

Skills by Province (Percent)

Provinces

2015

2016

DKI Jakarta

53.25

58.40

Papua

11.43

From the above data, the regions that still have the

lowest level of technological knowledge was Papua

and the highest was DKI Jakarta. There are striking

differences that indicate the lack of even distribution

of Information and Computer Technology (ICT)

skills education. By increasing the content of

computer science skills in the education curriculum,

it is expected that the distribution of information and

computer skills will become wider so that the

Indonesian nation is ready to face the challenges of

the emergence of artificial intelligence technology.

Companies that plan to implement artificial

intelligence technology must anticipate the impacts

ICIB 2019 - The 2nd International Conference on Inclusive Business in the Changing World

718

that affect internal and external ones that will be

faced. Internally, outsourcing employees are those

who are directly affected by the presence of this

technology because outsourcing employees are

employees who are employed because their

administrative capabilities are not due to special

skills. With the application of this technology,

outsourcing employees are threatened with

termination of employment.

The research limitation in this journal is that it is

only discussing the impact of the implementation of

artificial intelligence in the banking industry that will

reflect on the motivation of outsourcing employee.

This research will not discuss further to the

government involvement in anticipating the

implementation of artificial intelligence. This

research will focus on the specific industry which is

banking.

By starting the implementation of artificial

intelligence technology, both companies and

employee need to be aware of the impacts that will be

caused so they can prepare themselves to deal with it.

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