As Indonesia finalizes its 2026 Presidential Regulation on Artificial Intelligence, it faces tensions between digital sovereignty and a restrictive regulatory culture. To secure its AI future, Indonesia must adopt reforms that empower businesses and create a supportive environment for innovation.
On January 23, 2025, President Trump issued a new Executive Order aimed at removing regulatory barriers to promote American leadership in artificial intelligence. This order marks a significant shift from the previous administration’s focus on oversight and risk mitigation, emphasizing innovation and competitiveness while moving away from ethical considerations and responsible AI development.
Research shows that 70% of operations management professionals use unauthorized AI tools, creating significant security and compliance risks. Despite the urgent need for efficiency, only 26% of companies have implemented effective AI governance policies.
In August 2025, China’s State Council launched “AI Plus,” a ten-year policy directive to accelerate AI adoption across its economy and society. The plan envisions an AI-integrated society by 2035 and addresses the critical need for domestic semiconductor capabilities to support AI development.
Ropes & Gray partners Erica Han, Craig Marcus, and Jackie Cohen share findings from a recent survey on generative AI adoption in consumer and retail industries, highlighting that while nearly half of respondents are experimenting with AI, most remain in early stages focusing on internal training and risk management.