Many individuals still associate Artificial Intelligence (AI) with science-fiction dystopias or Orwellian literature. However, it is worth noting that characterization is gradually waning as AI develops, matures, and becomes more commonplace and important in our daily lives. Today, artificial intelligence and other similar technologies, such as machine learning, are household names – and at times, even a household presence (hello, Alexa!).
Like explorers embarking on a quest for the unknown, businesses, including startups, are venturing into a new era powered by artificial intelligence and machine learning. AI is transforming businesses and companies, irrespective of niche, and taking them on an exhilarating journey of unprecedented growth and success.
However, when you think about artificial intelligence and its business application, your mind may jump to automation. After all, it is the first thing that pops into most people’s heads. Although some applications and uses cases of AI do involve automating business processes and procedures that were originally managed or executed by humans, this phenomenon only scratches the surface of what AI, deep learning, and machine learning can do.
Not only is artificial intelligence helping people become more productive and efficient, it is also revolutionizing how we do business. Did you know that 86% of CEOs say that AI is now a mainstay in their offices? You will be surprised to learn that it is not in the form of futuristic robots or complex machinery, but rather software to run their daily operations.
From predicting consumer behavior and buying habits to lowering manual data entry, artificial intelligence in business has become indispensable in ways never imagined before.
In business, AI has a wide range of applications and uses. Actually, most people interact with AI technology in some form or another daily. From dull and menial to breathtaking, artificial intelligence and related technologies are already disrupting virtually every business process in almost every industry.
For example, the MD Anderson Cancer Center’s ambitious “Moonshot” project harnessed IBM’s Watson to transform cancer treatment. Just as the popular cancer center embraced AI in different capacities, executives, entrepreneurs, and business owners are gearing up to embrace this valuable and revolutionary technology.
As various AI technologies proliferate, they are quickly becoming imperative to maintain a competitive edge. Let’s explore how this tech innovation is reshaping and transforming businesses, one step at a time.
What is Artificial Intelligence?
Before we examine how AI technologies, such as deep learning, are impacting the modern business world, it is vital to define the term. “Artificial intelligence” is a branch of computer science and a broad term that refers to any kind of computer software or program that engages in human-like activities, such as learning, planning, and even problem-solving.
However, note that calling specific applications “AI” is like calling a car a “vehicle” – while it is technically correct, it does not cover any of the specifics. So, it is important to understand the details.
Artificial Intelligence aims to create machines and systems, such as predictive analysis and forecasting systems, which can perform tasks that typically require intuition or human intelligence. It entails developing computer programs and algorithms that enable robots or machines to learn from experience, and adapt to new inputs. That is fascinating, right?
Machines and programs are also trained to perform tasks with human-like intelligence, like problem-solving, natural language understanding, decision-making, speech recognition, and image recognition.
AI systems are powerful and can analyze large datasets and recognize patterns. They can also make predictions or recommendations on the basis of the data they have learned from. AI algorithms meticulously sift through colossal amounts of data, sorting out hidden patterns and nuggets of wisdom. This is an impressive feat!
Whether it is predicting market trends or understanding customer preferences and habits, AI turns raw data into powerful and actionable insights, empowering decision-makers to make strategic and informed choices.
Companies like Amazon and Etsy use AI and machine learning to analyze customer behavior, optimize pricing, and recommend products. On the other hand, Netflix wields AI to suggest binge-worthy shows and movies, keeping viewers glued to their screens like die-hard fans cheering for their favorite team!
The Proliferation of Artificial Intelligence in Business
Companies and businesses today have access to more data than ever before. Forbes revealed that the amount of data generated and consumed increased by a whopping 5000% from 2010 to 2020. With the help of various emerging technologies and tech marvels, companies in all industries are now able to capture valuable user data that can help them make reliable and informed business decisions.
Also, in the last few years, many organizations and companies have wholeheartedly welcomed and embraced AI to make more effective use of the data they already collect. For instance, consider the following numbers:
- According to Grand View Research, the global AI market size was worth an impressive $62 billion in 2020. However, it is expected to have a growth rate (annual) of more than 40% from 2021 to 2028.
- Accenture’s recent report on AI revealed that almost 84% of C-suite executives, such as CEOs and CTOs, think leveraging AI and similar tools will help them meet their growth objectives.
- ⦁ 56% of survey respondents in McKinsey’s “The state of AI in 2021” survey mention adopting AI.
These numbers and statistics show that AI and machine learning are no longer experimental technologies only used by large companies or select brands. For most companies worldwide, it has now become a core part of their business operations.
AI and Modern Business Enterprises
Rather than replacing human intelligence, intuition, and ingenuity, AI is usually seen as a supporting and valuable tool. AI is adept at processing and analyzing troves of data, such as customer information, much faster than a human brain ever could. AI software and tools can then suggest synthesized courses of action to human users.
This is how we can use AI and similar tools to help game out possible consequences or ramifications of each action, streamlining the decision-making process.
However, it is prudent to embrace AI in practical ways, such as automating simple tasks or using a piecemeal approach. This is how it can yield remarkable results. Much like NASA’s RPA pilots that started with simple tasks, businesses in different niches and sectors can leverage AI to automate mundane processes, leading to quick returns on investment.
By unleashing AI’s magic on data, companies gain powerful insights, understand customers better, and make strategic decisions like seasoned champions on the field.
Common Uses and Applications of AI
Some standard uses and applications of AI are cybersecurity, personalization, customer relationship management, and personal assistants.
Personalization – Tailoring Experiences Like a Bespoke Suit
In the corporate world, personalized experiences are like a well-tailored bespoke suit, fitting each customer perfectly. Leveraging AI for cognitive insight allows companies to analyze vast data volumes, providing detailed and precise patterns. Just like athletes strive for better performance with each game, machine learning models and AI algorithms continuously improve.
By understanding customer behavior, companies can offer personalized recommendations and targeted marketing. As Vanguard’s success with “Personal Advisor Services” shows, integrating AI with human expertise in customer interactions creates a winning combination, leading to high customer satisfaction and financial gains.
Cybersecurity – Proactive Recognition and Detection
AI is an indispensable ally, especially when looking for holes or flaws in computer network defenses. For instance, AI systems and tools can recognize a cyberattack and other cyber threats. They do this by monitoring unique patterns from data input.
Once these systems detect a threat, they can backtrack through the data in order to find the source and help avert a future threat. That extra pair of eyes – one that’s as continuous and diligent as AI – will serve an excellent role in preserving your tech infrastructure.
Providing Product Recommendations
Companies can also use AI to recommend products and services that will align with customers’ needs and interests and keep them engaged.
For example, by tracking and monitoring customer behavior on your site, you can easily present your customers with products or services that are similar to the ones they have already viewed or used. Keep in mind that this is an especially valuable tactic for companies in the competitive e-commerce space.
AI-Driven Insights – Illuminating the Path to Success
AI is the Sherlock Holmes of the modern business world, uncovering hidden trends and clues that competitors often overlook. By analyzing vast datasets, AI tools reveal valuable insights, helping companies make data-driven and informed decisions.
For example, AI helps financial institutions, such as banks and credit unions, detect fraudulent activities by identifying unusual patterns.
Final Thoughts
As the curtain rises on the AI-powered business revolution, companies of all sizes must grab the spotlight and take center stage. Rather than replacing human intelligence and ingenuity, AI can complement human efforts.
As businesses launch pilot projects and gradually scale up, they navigate the AI revolution like intrepid explorers venturing into uncharted territories. With a blend of AI-powered insights, automation, personalization, and top-notch customer service, companies can conquer new frontiers and emerge victorious champions in the ever-evolving business arena.
How IDA’s Design Transforms Business
IDA is not your standard data analytics platform. It is an interactive BI tool that is created to unlock speed to insights that was designed to enhance the human thought process, accelerate insight to human derived decisioning by unlocking real-time visualizations and interactive predictive modeling, spontaneous analysis, anomaly detection, and more…
Sources
https://hbr.org/2018/01/artificial-intelligence-for-the-real-world
https://online.wharton.upenn.edu/blog/how-do-businesses-use-artificial-intelligence/
