October 14, 2025 | 10:43 pm
TEMPO.CO, Jakarta - McKinsey's partner in Australia, Sergey Alyabyev, revealed the role of artificial intelligence (AI) in supporting the future mining sector. Sergey believes that AI-derived intelligence can boost mining productivity, which has stagnated over the last two decades.
According to Sergey, the global mining industry is facing several challenges due to increasing market demand for minerals and the like. On the other hand, companies' access to explore ore sources, talent, and technology to accelerate production has not progressed.
"We believe that AI can significantly address these issues," said Sergey during his discussion in Jakarta on Tuesday, October 14, 2025.
Sergey mentioned that AI is not just one technology, but a collection of tools such as machine learning, deep learning, generative AI, and genetic AI. He stated that this combination allows the optimization of decision-making to be more detailed, from planning to operational levels.
He exemplified the usefulness of AI for the mining industry, one of which is simplifying working time compared to conventional methods.
"A supervisor can spend four hours on handovers, with fluctuating results. With AI, all data can be collected, reports combined, and even voice memos sent to the next shift supervisor during travel," Sergey said.
Regarding the investment cost of utilizing AI, Sergey stated that it has recently become more affordable for many parties. He cited the Stanford AI Index report, which recorded the cost of using GPT-3.5 AI type dropping from US$50 per million tokens to 10 cents at present. "We believe the price will become even cheaper next year," he said.
Meanwhile, Group Head ICT and Digitalization MIND ID, Andoko Wicaksono, positively welcomed Sergey's explanation regarding the use of AI for the mining industry. He says that MIND ID, an Indonesian state-owned mining industry holding company, has evaluated this technology to reduce operational costs and conserve resources. "The key is operational relevance," said Andoko in the discussion.
Andoko mentioned that the mining industry does not have to wait for the most advanced AI to arrive, because even with the current simple generative AI technology, it is already capable of bringing benefits to its users. "Even simple AI, if used correctly, will also have an impact," said Andoko.
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