The use of artificial intelligence (AI) to improve company productivity has become a common practice in the midst of digital transformation. But the presence of artificial intelligence does not have to make workers lose their jobs.

For this reason, companies must find the right formula so that workers and AI can complement each other so that the company develops and achieves competitive advantage. This was said by a number of practitioners in a discussion on Wednesday (3/9).

Reflecting on a dozen years of experience founding and managing dozens of companies in Indonesia and the United States, David Tjokrorahardjo recognizes that a growing company will undergo transformation as a certainty, not as a puzzle. The leadership development practitioner likens the phases of company development to insect metamorphosis.

"Growth is optional. Like a caterpillar, your company can get bigger, but a growing company is a caterpillar that proves itself capable of fulfilling the metamorphosis into a butterfly," said the President of Maxwell Leadership Indonesia.

To drive transformation in the company, according to David, AI is a factor that supports leadership to eliminate or improve.

To drive transformation in the company, according to David, AI is a factor that supports leadership to eliminate or improve.

If AI is used only to eliminate the old ways of operating a company, the results achieved will be nothing more than efficiency, as AI is merely programmed to do basic tasks such as creating routine reports.

On the other hand, if AI is used to increase productivity, companies can invest their workers' time and competencies to read trends, find opportunities, and formulate strategies for the long term to increase customer satisfaction, make the company a shared growth space, and contribute to the community.

"Leadership is not just a position. It is an adventure. Our job is to find our place: where are we in that adventure?" David said to end his presentation.

Sense of purpose

The fruits of transformative leadership not only ensure that the company is thriving and competitive, but also a sense of ownership in every worker down to the lowest level.

Kopi Kenangan CEO Edward Tirtanata's experience expanding his coffee shop business to reach 1,100 branches in six Asia Pacific countries proves that.

"Our vision is simple: 3,000 Kopi Kenangan outlets by 2028, and to become the largest coffee chain in Southeast Asia," Edward said, to applause from the audience.

With this vision, Kopi Kenangan penetrates the market with the aim of making Indonesian coffee flavors known along with its identity.

According to Edward, identity is important because over the years, he has found Indonesian coffee supplying a leading coffee chain, but without any explanation that it is Indonesian.

However, he said, carrying out this vision is not easy without a solid corporate culture. He pointed out that this year alone, Kopi Kenangan opened 353 new outlets.

With the need for more employees to operate the store, what is Edward doing to foster company culture?

"People need purpose. They need a purpose, to make them have a mission, so they don't just think 'what will I get', but also 'what will my company be like'. That's why Kopi Kenangan makes stock options up to the store manager level, so that they do their best for the company not just to meet targets, but because they feel that they own the company," he said.

"People need purpose. They need a purpose, to make them have a mission, so they don't just think 'what will I get', but also 'what will my company be like'," Edward said.

Edward's strategy worked. The managers of Kopi Kenangan stores not only took the initiative to improve their own stores, but also helped the company open new stores. Their contribution is not solely measured by the fulfillment of key performance indicators, but also the originality of innovative ideas.

"We held an AI Hackathon for managers. They compete to create an innovation strategy that can be presented, then the winner will make the strategy a KPI for one year. If your employees already have a sense of purpose and a sense of ownership of the company, people who have left the company will come back," Edward said.

Vice Chairman of the Indonesian Human Capital Forum (FHCI) Hadjar Seti Adji dissects Edward Tirtanata and Kopi Kenangan's strategy in forging workers' sense of purpose and sense of ownership in the company.

According to Hadjar, encouraging a sense of purpose is part of the company's transformation to adapt to the distinctive character of young Generation Z workers who are now aged 18 years to 25 years.

"Generation Z is tech-savvy and purpose-driven. Our challenge as leaders is to get to know them and make our companies attractive to them, while continuing to transform to be more agile and ready to meet the needs of the future," Hadjar said.

To get the best and strongest Generation Z talent, according to him, one of the best tips is the way technology company IBM makes AI their HR manager, through a platform called IBM Watson.

The way IBM Watson works replicates the four key pillars of HR management. In recruiting, Watson uses AI to analyze labor market trends and read candidate profiles accurately.

In educating, Watson compiles a personalized report suitable for their portfolio of work. In determining retention, Watson identifies saturation points for HRDs to evaluate performance. In strategizing, Watson helps HRDs receive and respond to employee feedback with precision and precision in less time.

"What did IBM achieve with Watson? US$300 million in operational cost savings, 50% reduction in hiring costs, and optimized 12,000 man-hours in 18 months. This is not just a success story, but a signal. The future of work is not man versus machine, but making humans able to work in harmony with the speed of machines," Hadjar said.

Stay human-centered

In the discussion, Minister of Manpower Prof. Yassierli outlined his ministry's mission to be more than just a bureaucratic unit, but a motor for accelerating the transformation of Indonesia's human resources needed for the future.

"There is a mindset that we must change. People who come looking for work now no longer want to be labor, but manpower. Therefore, the component that we are developing is to make the Ministry of Manpower a Ministry of Manpower and Human Development for the future of Indonesia," said Yassierli.

The change in mindset is exemplified by the change in the term employment as a symbol of the evolution of the concept of work. According to Yassierli, the term human resources is no longer relevant, nor is human capital as a concept of workers who are absolutely dedicated to the company.

"In the future, the world of work will focus on human potential that is human-centered, goal-oriented, gathers individual talents, and makes AI a partner for innovation and decision-making. AI is not just artificial intelligence, but augmented intelligence, enriched and amplified intelligence," he emphasized.

"I invite you to start involving millennials and Gen Z in company transformation. They are looking for purpose and meaning in work, not just experience. They want a healthy growth space to develop themselves," he said.

As Minister of Manpower, Yassierli recommends five practical steps that CEOs and HR managers can implement to establish a people-centered and people-invested company:

• First and foremost is to motivate subordinates to take responsibility for themselves.
• Second, the integration of performance improvement plans with individual development.
• Third, increase training and education.
• Fourth, delegate important tasks to lighten the load and challenge subordinates to grow.
• Fifth, create a nice place to grow that supports growth with a positive, inclusive and collaborative atmosphere.