Drone startup changes trajectory to AI

In The Prompt this week, we look at how a Malaysian drone startup pivoted to ride the AI wave. [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: - [To pivot or not to pivot to AI: that’s the question for startups]( - [Is CP Group scion’s AI startup worth the $60m it raised?]( - Indonesia’s finance services sector confident in deploying genAI --------------------------------------------------------------- Hello {NAME} I’ve heard anecdotal stories about Web3 startups rebranding themselves as AI firms, hoping to surf from one wave to the next. While my first reaction was to smirk, I realized that this is what entrepreneurs sometimes have to do to keep their companies afloat. In this edition’s featured story, my colleague Scott recounts how Aerodyne, a Malaysian drone company, pivoted from offering just drone services to being a data science business. Now, the firm, which has over 150 data scientists and AI engineers, is working to combine the customer data its drones collect with a large language model (LLM). This will allow it to do things like automating the maintenance of telecom towers and other assets. While it’s possible to achieve this without AI, having an LLM removes the need for a human intermediary between the various systems. Find out more on this, along with how founders should be integrating AI into their products and services, in Scott’s story. Meanwhile, in the Hot Take this week, I take a closer look at the results of a survey that examines how ready Indonesian fintech and financial institutions are in adopting genAI. -- Simon  --------------------------------------------------------------- THE BIG STORY [To pivot or not to pivot to AI: that’s the question for startups]( Aerodyne has successfully pivoted from drones to AI, but other companies chasing funding by integrating AI need to be careful.  --------------------------------------------------------------- THE HOT TAKE Indonesia’s finance services sector confident in deploying genAI Here’s what happened: - In a survey of Indonesian financial services firms, 61% of respondents were confident that they had “strong technological readiness” for genAI, according to a [report]( released last week. - Over half (51%) of respondents are focused on deploying genAI for everyday tasks, while 27% saw opportunities in inventing new products and services. - However, many initiatives are still in the pilot phase and have yet to show significant business value. Here’s our take: Indonesian financial services companies appear to be eager and confident adopters of genAI. While a [BCG study]( - cited in the report - found that 85% of global financial institutions see genAI as “highly disruptive,” only 18% have a clear strategy on how to implement it within their organizations. The figures from the report suggest that Indonesian firms have an edge over their global counterparts - in fact, 34% of finance leaders in the archipelago already claim to see tangible benefits from deploying this new technology. According to the report, companies can consider three “strategic plays” when it comes to integrating genAI into their businesses. Respondents prioritized “deploying” and “inventing,” with 51% focused on the former and 27% focused on the latter. It’s noteworthy that “reshaping” came in last. The “radical operational efficiency changes” that the approach promises would have the greatest impact on an organization’s need for humans. This signals that the respondents may be unwilling to go all-in on measures that could lead to employee redundancies, at least for now. This could be because deploying genAI involves [significant expenditures](. Many initiatives are also still at the early stages and have yet to demonstrate a satisfactory return on investment. Companies need to choose where best to deploy the technology. For example, it may not make sense for most financial services companies to develop their own large language models. A Gartner report predicted that [more than half]( of enterprises that have built AI models from scratch will abandon their efforts due to the costs and complexity involved. Meanwhile the cost of labor may be a less pressing issue for employers in Indonesia, where labor expenses are [generally lower]( than in the developed world. Nevertheless, as the technology develops over the longer term, we could see a [“widespread displacement of workers.”]( And it’s not customer care representatives or compliance analysts who should be looking over their shoulder. [“Seismic advances in computing power”]( could soon render moot the “rigorous number-crunching” required of junior analysts in private equity, writes the Financial Times. While companies will always want to hire smart and driven people, the number they do employ might lessen, along with a changing focus on their talents’ skill sets. One of the characteristics employers may now prize is adaptability. In [an interview]( with the Straits Times last week, incoming DBS CEO Tan Su Shan said that she “tells managers to hire staff carefully and constantly ask whether that job is going to be around when genAI comes, and whether the person involved can be retrained for another role.” Whether in Singapore, Indonesia, or indeed anywhere in the world, white-collar workers should be thinking hard about how they can stay relevant in this brave new world.  --------------------------------------------------------------- DEEP READS Check out these interesting reads about AI: 1️⃣ [The new XXX image generator of xAI]( Elon Musk’s xAI’s Grok chatbot, which lets users create images from text prompts, is allowing users to create controversial images that other mainstream chatbots would typically refuse. Examples include former US President Donald Trump wearing a Nazi uniform, Taylor Swift in a black lace bra, and Bill Gates sniffing a line of cocaine from a table. Grok did, however, refuse to generate an image of a naked woman. 2️⃣ [Same but different]( It’s vital to distinguish between genAI and the AI models used to power investment robo-advisors: The former generates content but struggles with math computations, while the latter have been designed to follow investment best practices. That said, robo-advisors could have uses for genAI. 3️⃣ [CIOs should rethink genAI strategies]( GenAI may be in a bubble, but one that could end up deflating instead of bursting. Going forward, chief information officers should consider use cases for the technology that are tailored to specific needs and offer more precise and effective solutions.  --------------------------------------------------------------- SYNC 2024 - AI • SINGAPORE Get ready for a game-changer SYNC 2024 is taking on a new dimension. This year, we're diving deep into the world of artificial intelligence - the force that's reshaping industries, driving innovation, and redefining the future of business. AI is already here, but it's only just beginning to reveal its true potential. This summit will bring together Asia's leading experts to explore how AI is transforming business models and discuss the latest advancements in the sector. Expect candid conversations on how AI can be harnessed to address global challenges, from maximizing the human-genAI synergy to tackling climate change. Find out more about [SYNC 2024]( today.  --------------------------------------------------------------- FYI [Is CP Group scion’s AI startup worth the $60m it raised?]( Founded by the scion of Thailand’s richest family, Amity is set to pursue an M&A-led expansion and aims to go public by 2025.  --------------------------------------------------------------- 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]( Want to know what's next for Southeast Asia’s startup scene? Join us at TIA Conference Jakarta to hear from top VCs like Jefrey Joe of Alpha JWC Ventures, the founder-turned-investor Achmad Zaky and Agung Bezharie. They'll share insights on which market is still the hotbed for investment, the challenges and opportunities of transitioning from founder to investor, and many more. Join thousands of founders and investors at TIA Conference Jakarta. Tickets are now on sale for 50% off until August 11th. [Get tickets.]( [Investor Hour at Tech in Asia Conference Jakarta]( Ready to make your startup dream a reality? Investor Hour is your golden ticket. This exclusive one-on-one networking session brings together brilliant founders and seasoned investors in an intimate setting. Whether you're seeking funding or looking to sharpen your pitch, Investor Hour is your platform to build lasting relationships. Don't miss this chance to connect with the industry's top minds. Secure your spot at TIA Conference Jakarta now! [Get tickets.]( [Gemini Day for Startups: Singapore on August 22]( What if you could shape the next AI breakthrough instead of just reading about it? Google Cloud experts will reveal how they're supercharging AI for startups, giving you the tools to define the future, not just keep up. Think of it as a masterclass in genAI, where you'll broaden your perspective and walk away with actionable strategies. [Apply now - seats are strictly limited.]( [Tech in Asia’s Founders Meetup: Thailand on September 11]( Is Bangkok's tech scene ripe for disruption? Get the inside scoop from A2D Ventures’ Ankit Upadhyay, WV’s Wing Vasiksiri, and The Radical Fund’s Paul Ark on unlocking growth potential, mastering investment strategies, and connecting with the right people. [Get your early bird pass at 20% off now.]( Hurry, promo ends August 26! [DevOps Decoded: Industry Insights & Networking on September 12]( It’s no secret that DevOps is evolving at a breakneck pace, but do you have what it takes to adapt and thrive? Uncover the hottest trends and tech advancements in DevOps as we dissect success stories and arm you with the knowledge to future-proof your DevOps strategy. [Seats are strictly limited - apply now.]( --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter [here](. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you soon! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894