Dr. Andri Prima Nugroho Shares Insights on Optimizing UMKM Production with AI in UGM Class Series #27

Yogyakarta, August 13, 2025 – Dr. Andri Prima Nugroho, Lecturer in Agricultural Engineering & Biosystems at Universitas Gadjah Mada, participated as a speaker in the UMKM Class Series #27 event organized by the Directorate of Community Engagement (DPKM) UGM. In a session titled "The Role of AI and Creative Ads for UMKM", Dr. Andri specifically presented material on "Optimizing UMKM Production with Artificial Intelligence: Opportunities and Practical Implementation" to UMKM entrepreneurs from Yogyakarta and Central Java.

In his presentation, Dr. Andri emphasized the strategic role of UMKMs as the backbone of Indonesia's economy, while highlighting production challenges frequently faced, such as limited efficiency, slow product innovation, and resource constraints. He then introduced Artificial Intelligence (AI) as a transformative solution capable of increasing productivity by up to 40% and accelerating product-to-market launch time up to five times faster, as demonstrated by McKinsey studies (2023).

The core material of Dr. Andri's presentation covered various AI applications for operational efficiency and product innovation in UMKMs. He explained how AI can optimize supply chains through demand forecasting and smart inventory management, improve product quality with computer vision-based automated inspection, and predict machinery failures through predictive maintenance. Additionally, AI also opens opportunities for product innovation through market trend analysis, product personalization, and generative design assistance.

Beyond presenting opportunities, Dr. Andri also discussed common challenges in AI adoption by UMKMs, such as low digital literacy, resource limitations, and unstructured data issues. To address these, he recommended practical implementation strategies, ranging from small-scale starts, leveraging affordable cloud/SaaS-based AI platforms, capacity building for human resources, to collaboration with academia and digital communities.

An interactive session with UMKM participants was also an important part of the event, where Dr. Andri provided practical guidance on marketing strategies, creating engaging content through storytelling and visual market keywords, and the importance of potential mapping in determining business direction. Questions from participants regarding product focus, use of market keywords on social media platforms, and ways to overcome content creation difficulties were answered straightforwardly, providing inspiration for UMKM entrepreneurs to continue innovating.

Dr. Andri Prima Nugroho's participation in UMKM Class Series #27 affirms UGM's commitment through DPKM in supporting the digital transformation of Indonesian UMKMs. Through increased technology literacy and practical skills, it is hoped that UMKMs can compete optimally at both national and global levels, making AI a strategic partner for sustainable business growth.