The Artificial Intelligence (AI) investment wave is entering a new phase. After years of market focus on companies building AI infrastructure such as chips, data centers, and cloud computing, attention is now shifting toward how AI can enhance productivity and drive earnings growth across industries. Microsoft, Alphabet, Meta, and Amazon continue to increase AI investments to strengthen the digital ecosystem supporting broader AI adoption.

From a macro perspective, the Bank for International Settlements (BIS) believes AI could reshape inflation dynamics by improving productivity while expanding production capacity.
 

For investors, this suggests that AI is no longer just a story around large technology companies, but is evolving into a structural theme that could benefit various sectors through operational efficiency, margin improvement, and business optimization.

In Indonesia, AI’s impact on corporate earnings remains at an early stage, but the foundation for adoption is gradually being built. Indosat (ISAT) is one of the companies gaining exposure to this theme through the development of AI NeoCloud, with contracted backlog increasing to more than US$300mn per year. While AI contribution to current earnings remains limited, the development highlights potential growth opportunities as demand for cloud, data centers, and digital services continues to rise.

Going forward, investors may shift their focus beyond companies that build AI technology toward companies that can successfully translate AI adoption into higher productivity and earnings growth. For the Indonesian equity market, AI remains an early-stage theme to monitor, with companies possessing strong fundamentals and digital exposure potentially emerging as beneficiaries as AI adoption enters a broader phase.